It would be unfair to criticize Tesla Motors’ CEO without also illustrating just how important he is to the company. Were it not for Elon Musk, Tesla would have never made it this far. He was not only integral in its foundation but also the driving factor as it picked up investors. While the company was building innovative products, he has kept shareholders looking toward the horizon and keeping the faith.

Unfortunately, 2018 hasn’t been a great year for Musk. While the brand has managed to keep its exceptionally loyal fan base, bad publicity has shaken investor confidence. No automaker is free from ugly stories but Tesla has been deemed semi-miraculous for some time — making any failures that much more glaring. The bar has been set unreasonably high and unkept promises have caused issues. Tesla has itself a PR problem and, like most things, it looks like it’ll be up to Elon to fix it. But it’s going to be a monumental task, Musk is already putting out fires everywhere and the pressure is only expected to build over the next 24 months.  (Read More…)

Tesla has stopped production of the Model 3 again.

That’s the second time this year.

Production problems might not normally make such news – after all, Tesla is a small automaker that’s both attempting to grow and bring a new model, its first truly mass-market model, to production.

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Tesla Motors is months behind schedule. Despite promises that Model 3 production would be humming along by the end of last year, the automaker has found itself bogged down by all kinds of delays. In March, the company’s problems were exacerbated by a voluntarily recall on 123,000 Model S sedans and another high-profile crash involving its Autopilot system.

This has shaken investors’ previously unwavering faith in Tesla, and forced a significant dip in its overall share price. Last month, the company’s stock valuation took a hit that it’s just now starting to come back from. But Tesla CEO Elon Musk knows he cannot simply dazzle shareholders with new ideas and promises, and has been camping out at the factory in Fremont, California, to prove his resolve and engage in some on-sight troubleshooting.

While he has mentioned his office sleeping-bag before, we actually got to see it in a recent interview he had with CBS This Morning host Gayle King — along with the rest of the factory. Musk invited CBS to come and see the plant and discuss Tesla’s current status, providing a rare glimpse of the facility. Normally, the automaker is incredibly strict in terms of who it allows inside and no network television crew has ever been able to film the assembly process.  (Read More…)

It could happen, but then again, it may not. One thing’s for certain: buyers of the twin-motor Tesla Model 3 stand to wait less than those holding out for a base model.

In response to a Twitter user who asked when we can expect the all-wheel-drive variant of the massively hyped electric sedan (“My car has been sitting in the configuration for months waiting on it”), Tesla CEO Elon Musk replied with an approximate month. For this prediction to come true, Tesla must reach its second production target. It missed the first. (Read More…)

It’s been said that the true test of Tesla’s “affordable” Model 3 won’t be the car’s production rate — it will be initial build quality. A slower than predicted production ramp-up is already a reality for Tesla and its hundreds of thousands of reservation holders, but, as the automaker reaches beyond the existing group of well-monied brand diehards, glitches and reliability issues will pose a larger threat to the brand’s reputation.

With the Model 3 now coming off the Fremont assembly line in larger numbers (though not as large as predicted), it seems we have a recurring quality issue, if you want to call it that. Many Model 3 owners — who, for obvious reasons, are not longtime Model 3 owners — are taking to the internet to report a strange problem that leaves their car dead in the water and in need of a tow. (Read More…)

You’ve probably heard of the Ford Model T before — perhaps in a book or on Tumblr or something. Brainchild of auto pioneer Henry Ford, the Model T (introduced in late 1908) revolutionized the use of the assembly line for mass production five years later. Between 1912 and 1917, annual Model T production soared from 68,711 vehicles to 735,020.

Why am I mentioning a car that’s over a century old? Well, it’s because Tesla, in all of its its exuberance, decided to namedrop the Model T in its first-quarter 2018 production report. Apparently, we might be looking at the next one.

Of the 34,494 Tesla vehicles built in Fremont, California over the first three months of 2018, some 9,766 were Model 3s. In the fourth quarter of 2017, Tesla built 2,425 Model 3s. However, Tesla claims some 2,020 of the compact electric sedans came to be in the last seven days, meaning roughly one-fifth of its Model 3 output came during an eleventh-hour, all-stops-pulled production push at Fremont — which reportedly saw volunteers from other model lines switch over to Model 3 assembly. (Read More…)

Tesla keeps insisting it’s going to show the automotive industry how to do things differently. The company’s make-or-break Model 3 was put into production without any pilot assembly or validation prototypes. Tesla is also more vertically integrated than traditional automakers these days. It owns its own stores and it makes many of its own parts. So far, with the EV maker as of yet unable to really get mass production underway on the new sedan, the jury is out on Tesla’s strategies.

CNBC now reports current and former Tesla workers saying almost half of the parts made at or produced for the EV startup’s Fremont, California assembly plant don’t meet production standards, forcing rework and end-of-line repairs, as well as impairing morale in the facility.

This raises the question of whether Tesla will be able to mass-produce vehicles in the quantities associated with automotive mass production: hundreds of thousands of vehicles per year. Tesla needs to be able to build and sell its Model 3 at those numbers to be a viable firm. (Read More…)

Despite the fandom surrounding all things Elon Musk, there are still some electric car shoppers who’d rather drive than wait. It also seems that, when weighing a prospective Tesla Model 3 purchase, some consumers are willing to let price sway them to another car with a similar driving range.

None of this should come as a shock to those not immersed in blogs and forums devoted to championing Tesla as the sole agent of change in the automotive sphere, and the only “pure” solution to Earth’s problems. To some true believers, however, these shoppers could be seen as traitors to the cause.

That’s their problem. For General Motors, Tesla’s loss of customers is the legacy automaker’s gain.

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Since beginning production of the Model 3 last summer, Tesla has dialed back production targets like a thermostat in the springtime. The electric automaker’s first goal of 5,000 units per week by the end of the year passed as the champagne corks flew on New Year’s Eve, but by that time Tesla had already pushed it back to the end of Q1 2018.

Amid troubles on the assembly line, that target eventually moved to the end of the second quarter of this year, a goal that still stands.

Just how many Model 3s is Tesla cranking out these days? The company only reports deliveries on a quarterly basis, making it hard to get a firm read on the company’s exact output. One publication hopes to change that. (Read More…)

Tesla claims it’s closing in on its goal to produce 2,500 Model 3 sedans a week, even though the original deadline for that target is a few months past. However, a problem remains. Despite having all the tooling needed to hit its mark, some of the essential components are still in Germany when they should be in the United States.

While the automaker still claims it can reach 2,500 unit per week by the end of March, the new automated system for module production needs to be shipped from Grohmann Automation in Dausfeld, Germany, to the company’s Gigafactory, located outside Reno, Nevada. That’s a long distance to ship a lot of hardware in roughly a month’s time, leaving many wondering if Tesla is about to break another promise to investors.  (Read More…)

Tesla’s Model 3, described by many as a make-or-break product for the EV startup, has had a very slow launch, with production falling far short of the numbers Tesla had predicted.

CNBC is now reporting that, according to current and former Tesla employees, one of the factors in the launch delay is the failure of Tesla’s battery “Gigafactory” in aptly named Sparks, Nevada to come up to speed. Ironically, the highly automated factory apparently needs so much human hand work that Tesla has had to “borrow” dozens of employees from its partner in the facility, Panasonic. (Read More…)

The number of people willing to plunk down a $1,000 deposit for a Tesla Model 3 currently stands at about 455,000. In the third quarter of 2017, Tesla delivered 220 units of its smallest and most affordable electric car. Last quarter, some 1,550 buyers took ownership.

If it looks like it’s shaping up to be a long wait for the newest reservation holders, you’re right. Tesla claims it has succeeded in working out some of the issues hampering production at its Fremont, California assembly plant, but the pushed-back ramp-up of Model 3 production means some reservation holders won’t see their new car this decade. Meanwhile, you can not only walk into a General Motors dealer and order a Chevrolet Bolt today, but you can expect delivery well before the 2020 election campaign gets into full swing.

Is GM planning to exploit its competitor’s production woes? Not us, the automaker claims. (Read More…)

To hear Tesla explain it, the fourth quarter of 2017 was a boffo month for the company, with record deliveries and a new product that’s really hitting its stride.

It’s true that 1,550 customers took delivery of a Model 3 in the past three months, after the previous quarter saw just 220 of the lower-priced electric sedans roll into driveways. Overall deliveries rose 9 percent from Q3, for a tally of 29,870 vehicles. It sounds good, but the company, like before, still isn’t making enough Model 3s.

As it continues working through supply and assembly line issues, Tesla has pushed back its goal for 5,000-vehicle-a-week Model 3 production for the second time. (Read More…)

American investment manager and short-seller extraordinaire Jim Chanos claims Tesla is “headed for a brick wall.” Having deemed the automaker as structurally unprofitable, Chanos said, “Three years ago, this company was supposed to be making money [today]. And now, it’s supposed to be making money by 2020. I’m guessing by 2019, we’ll hear about 2025.”

However, while Tesla has taken on massive amounts of debt to ensure its evolution as company, investors haven’t seemed to mind. Its stock price has climbed from $33 a share in 2013 to almost $380 in September of 2017. As a short-seller, Chanos says he’s lost money on the company in the past since the stock price never seems to go down, and that’s what he finds the most alarming.

“Nobody is buying Tesla stock based upon the current business,” he said. “It’s all based on the future and the hope for half-a-million to a million Model 3s per year.” (Read More…)

Patience, as we’ve been told, is a virtue. Therefore, the most virtuous individuals occupying the ball of mud we call Earth must be the Tesla faithful currently awaiting their pre-ordered Model 3 sedans. The speed of the vehicle’s launch has been sedate, to say the least. Tesla Motors finds itself plagued by production bottlenecks, which hasn’t helped the already long wait times facing those who dropped a sizable wad of bills just for the privilege of eventually owning its latest model.

However, the lengthy intermission between launch and ownership doesn’t appear to be diminishing their love for the company — a testament to the brand’s difficult-to-tarnish image. Fans of the automaker seem content to wait it out in tranquility like Siddhartha Gautama under the tree of enlightenment.  (Read More…)