Tesla's problems are mounting — here's everything that has gone wrong so far this year (TSLA)

Tesla Model 3

  • Tesla has a history of proving its doubters wrong, but over the last few months, the automaker has faced a number of challenges.
  • From missed production targets to questions about its financial health, Tesla may be at an inflection point.
  • Whether Tesla can overcome recent challenges could determine whether 2018 sets the stage for another improbable triumph or raise serious questions about the company's future.


Tesla has a history of beating the odds. 

CEO Elon Musk has said he believed the company had around a 10% chance of success when it was founded in 2003. Since then, the company has won awards for its vehicles, built an enthusiastic fanbase, and watched its market capitalization approach and temporarily top those of General Motors, Ford, and Fiat-Chrysler.

Part of the company's success can be attributed to Musk's rare gift for storytelling. Since taking over as the company's chief executive in 2008, he's outlined a vision for the company that extends beyond selling cars to transforming global energy grids. Investors have bought that story, which is why the company has been able to raise money without much difficulty despite posting consistent deficits.

But that story has taken a hit in recent months as the company has faced concerns over its finances, ability to build cars at scale, and public comments attributed to Musk and Tesla. Now, the company is at an inflection point. Elon Musk says the company will be profitable by the end of the third quarter and won't have to raise money for the rest of the year. Some analysts and investors disagree with him.

Whether Musk lives up to his assertion could determine whether 2018 sets the stage for another improbable triumph or raise serious questions about the company's future.

Here are the moments that have led to Tesla's latest moment of reckoning.

SEE ALSO: Elon Musk wants to ramp up Model 3 production while it's already struggling — but his plan doesn't make sense

Amazon account hacked to mine cryptocurrency

In February, Tesla's Amazon Web Services account was hacked to mine cryptocurrency. The hack, which was brought to Tesla's attention by the cybersecurity startup RedLock, also reportedly exposed some of Tesla's proprietary data related to mapping, telemetry, and vehicle servicing.

According to Fortune, Tesla paid RedLock over $3,000 as part of its bug bounty program, which rewards people who find vulnerabilities in the company's products or services that could be exploited by hackers.

"The impact seems to be limited to internally-used engineering test cars only, and our initial investigation found no indication that customer privacy or vehicle safety or security was compromised in any way," a Tesla spokesperson told Business Insider in an email.



A Model S recall

In March, Tesla issued the largest recall in its history. The recall involved power-steering systems in 123,000 Model S sedans. Tesla said five bolts responsible for holding the power-steering motor in place could corrode, break, or come loose, which could result in the loss of power steering.

But the company also said the problem was rare and most likely to happen in colder areas that use a specific kind of salt to lessen the amount of ice and snow on the road. According to Tesla, the problem was only relevant to Model S vehicles built before April 2016 and had affected just 0.02% of Model S vehicles at the time the recall was announced.



A fatal Model X crash

In March, a Model X crashed into a highway barrier in Mountain View, California. The driver, Walter Huang, died after being taken to the hospital. 

Autopilot, Tesla's semi-autonomous system, was engaged during the accident, and Huang's wife said he had complained about the system not working properly near the area where the crash occurred. 

Tesla released a statement blaming Huang for the accident. The company said "the only way for this accident to have occurred is if Mr. Huang was not paying attention to the road, despite the car providing multiple warnings to do so."

Huang's family said they plan to sue Tesla

While Tesla pointed to statistics that indicate fatal accidents are 3.7 times less likely to happen in Tesla vehicles that have Autopilot than in other vehicles, the crash highlights the difficulties automakers face as the industry slowly shifts toward autonomous vehicles.



See the rest of the story at Business Insider


Contributer : Tech Insider https://ift.tt/2F1aJTx
Tesla's problems are mounting — here's everything that has gone wrong so far this year (TSLA) Tesla's problems are mounting — here's everything that has gone wrong so far this year (TSLA) Reviewed by mimisabreena on Monday, April 23, 2018 Rating: 5

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