Elon Musk Assures Tesla Shareholders that everything is Okay

12 months ago, Elon Musk, who is also the chief executive officer of Tesla promised that he would revolutionize the auto manufacturing industry. He further said that he would do this with an electric car factory that is located in Fremont, California. 12 months later, Tesla and their chief are now stuck just like any other car manufacturer. They are not sure whether they will be able to produce the new car design on time. This comes as a surprise to both customers and experts in the car industry after Elon Musk disrupted the automotive industry with his innovative technology. What remains apparent is that even his commitment and stunning designs won’t produce the promised car on time. This led to the chief executive officer of Tesla to address the issue yesterday. He explained to investors and customers that the delays were as a result of temporary glitches, unlike the rumors that the company had been unable to deliver Model 3. He wrote a letter to the shareholders affirming to them that the company would deliver the 5,000 models as promised. The cars will be ready by early 2018. He, on the other hand, said that they continue to face glitches as they try to fix the Model 3 bottlenecks.

Elon Musk said that the delay had been caused by difficulties that had been experienced in one of its plants that is responsible for producing battery packs. He was referring to the Gigafactory that is located in Nevada. Elon Musk also said that they were experiencing a glitch in the welding process in its Fremont Factory. This has caused a delay in the final assembly. According to the statement by Musk, he told the shareholders that they were adding robots to the choke points. This would make the lines go faster. While speaking to analysts earlier, Mr. Musk said that speed would be the only weapon that will help the company deliver. Producing the Model 3 for Tesla has already been a humbling experience for Tesla and its boss. In the quarter that concluded on 30 September, Tesla was only able to produce 260 sedans. The company had a target of 1,500 sedans during the period. This came amid allegations that the cars were not up to the standards. This was then followed by a rash of job cuts in the company. Tesla has been on the receiving end of Wall Street analysts for the past few months.



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Dil Bole Oberoi