Tesla (NASDAQ:TSLA) Despite the ‘Good News’ Faces Major Challenges
Tesla (NASDAQ:TSLA) is still facing many major challenges. The US Securities and Exchange Commission (SEC) is examining past claims about production goals.
The Commission, in rejecting a request by the NY-T’s under the Freedom of Information Act for a transcript of Mr. Musk’s deposition in the case, said its release could interfere with “active and ongoing” investigations related to Tesla.
In addition, the quality of the M-3’s coming off its production line is being questioned.
Customers have complained on Twitter and in press accounts of receiving cars with scratches, cracked windows, defective components and other flaws.
Some Tesla owners have reported waiting a month or more for repairs because of a shortage of parts. In a quality survey published by Consumer Reports last month, Tesla was ranked 27th of 29 automakers, falling 6 places from last year.
Thursday, Mr. Musk said in a message on Twitter that the company had “acquired trucking capacity” that would allow it to deliver M-3 sedans ordered by the end of November by the end of the year in the United States to take advantage of certain government tax credits and rebates.
Tesla may also be facing a new customer-satisfaction issue.
Tesla’s owner forums show that other consumers have encountered problems when their cars are delivered by truckers, and not from dealer showrooms. Some cars are trying to be delivered when severely damaged by the transporter.
Dealers for established automakers rarely see damage to the cars trucked to their showrooms.
A Tesla spokeswoman declined to say how often the company’s cars are damaged in transit.
While working on these issues, Tesla is still moving ahead with plans to produce a new roadster, a semitrailer truck, a pickup truck and a small sport utility vehicle in the next few years. On Top of that, Mr. Musk intends to build a giant car-and-battery factory in China.
A Gartner analyst, said the delivery problems reflected the downsides of Tesla’s effort to build each car to match a specific order, and its use of its own delivery centers that were not designed to hold stocks of cars. Tesla has 104 delivery centers in the United States. BMW, by comparison, has more than 300 American dealers.
Mr. Musk as acknowledged that Tesla was having serious problems when he referred to “delivery logistics Hell” in a Twitter post on 16 September.
At the time, Tesla was scrambling to sell and deliver as many M-3 sedans as it could, to help turn a profit in Q-3. The CEO also asked current customers to help out at delivery centers to ease the load on Tesla’s staff.
There are reports that customer with $1000.00 place holder deposits who have demanded there deposits be returned months ago are now being told their car is ready, and are being pressured to take delivery.
Not a great experience when buying an $85,000 car!
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