Tesla (NASDAQ:TSLA) is Struggling

Tesla (NASDAQ:TSLA) is Struggling

Tesla (NASDAQ:TSLA) is Struggling


Electric car manufacturer Tesla has failed another independent braking test. Officials for the company don’t agree with the results.

The test was made in Luxembourg recently. The Luxembourg testing and standardization authority (ILNAS) put a Model S and a Volvo S90 through an emergency braking test.

As Luxembourg Wort reports, Volvo passed the test with flying colors, being able to stop at up to 60kph. Tesla Model S ran into the dummy car at 30kph.

Tesla has questioned validity of the test. “ILNAS has refused to share the details of the test with us, including the test protocol, and therefore we’ve been unable to confirm that the test is valid or accurate,” the company told Electrec.co.

“While we were not consulted by ILNAS in advance and only learned about the test through the media, we have obtained the vehicle identification number of the test car used and see it was built in 2015 and is registered as a rental car in Germany. We will continue to investigate to understand how the test was conducted and if it was done properly.”

Last week, Tesla skipped a braking test for the Model 3 in an attempt to ramp up production, various media have reported. The test was scrapped despite reports that the car is having problems with braking.

In May, US magazine Consumer Reports wrote an article claiming that the Model 3 sedan brakes slower than a pick-up truck. Another publication, Car and Driver, said it has never seen such “inconsistent braking,” which is worse than some trucks have, said the publication’s testing director, K.C. Colwell.

According to internal documents seen by Business Insider, Tesla CEO Elon Musk appears to have asked company engineers to remove the brake-and-roll test from the tasks Model 3 cars must complete to move through assembly.

Tesla managed to meet the self-imposed deadline to produce 5,000 Model 3 autos after several quarters of failing to do so. The goal was reached after ditching the brake tests which Tesla regards as redundant.

“Every car we build goes through rigorous quality checks and must meet exacting specifications, including brake tests. To be extremely clear, we drive *every* Model 3 on our test track to verify braking, torque, squeal and rattle. There are no exceptions,” Tesla told CNBC.

The message from Tesla didn’t impress Wall Street. Company stock lost over 7 percent on the news. Another reason for Tesla’s stock to decline is its missing production goals despite reaching the 5,000-a-week milestone. Tesla fell short on its second-quarter deliveries by delivering 40,740 vehicles instead of the projected 51,000.

Despite working overtime, during now-mandatory weekend shifts, workers told Reuters they were pulled from other departments, disrupting production of the Model S and X lines.

“They were borrowing people from our line all day to cover their (Model 3) breaks so the line would continue to move,” said a Model S worker on Sunday. He explained that the S line is about 800 cars behind because of the focus on the Model 3.

Experts say disruption of the Model S and X lines could threaten Tesla’s target of building 100,000 of those vehicles in 2018. It built 49,489 of those cars in the first half of this year. Asked about the potential S and X impact, Tesla said it also produced 1,913 of those vehicles during the last week of the quarter along with its Model 3s.

While the electric carmaker claims its cars have no problems with braking, some think otherwise. In May, US magazine Consumer Reports wrote an article claiming that Model 3 sedan brakes slower than a pick-up truck.

“The Tesla’s stopping distance of 152ft from 60mph was far worse than any contemporary car we’ve tested and about 7ft longer than the stopping distance of a Ford F-150 full-sized pickup,” the magazine wrote.

Another publication, Car and Driver, also covered Tesla’s braking. “I’ve been testing cars for 11 years… And in 11 years, no car has stood out with inconsistent braking like this. Some trucks have. . . . It was just weird,” Car and Driver Testing Director K.C. Colwell wrote.

Touted by some as the planet’s greenest vehicles, electric Teslas may be as bad for the environment as traditional petrol and diesel cars, the latest research reveals.

According to researchers at the UK-based climate data provider Engaged Tracking, the production of Tesla cars, as well as fossil fuel-powered plants used for generating electricity to charge the vehicles produce nearly the same amount of emissions that conventional engines do.

Engaged Tracking analysts used a different approach to studies that usually produce favorable results for electric vehicles. They explored the total emissions generated during the construction process of a Tesla Model S instead of counting how much CO2 is produced by the vehicle during its lifecycle. The astonishing results show that a Tesla is not cleaner to run than any other petrol car in Britain.

“The annual emissions of a UK car is 1.5 tons of carbon dioxide, based on an average of 7,800 miles a year,” the research firm’s chief analyst Jonathan Harris told The Sunday Times. “Both the Tesla Model S vehicles we analyzed have the same emissions as an ordinary petrol car of 1.5 tons of CO2 per year.”

The researcher also compared Tesla Model S to the BMW i3, which is smaller and produces an annual emission equivalent of 1.3 tons of CO2, making it 15 per cent more efficient than the Tesla Model S.

According to Tesla, the comparison between the Model S and an average car was not fair, because the Tesla was much larger. The company said that the BMW i3 should be compared to its smaller car – the Model 3, while Model S should compete with such a vehicle as the Mercedes S-Class S500. Tesla claims Mercedes produces nearly 300 percent more emissions than its Model S.

“It makes no sense to compare Model S to the average annual emissions figure for cars in the UK, because that average includes a lot of smaller models that are dissimilar to Model S,” the company said as quoted by the media. “’Any fair analysis shows that electric vehicles like Model S and Model 3 generate far less CO2 per mile than any comparable gas-powered car.”

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S. Jack Heffernan Ph.D. Funds Manager at HEFFX holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reach a peak market cap of $15b. He has managed and overseen start ups in Mining, Shipping, Technology and Financial Services.

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