Is Tesla failing? It’s certainly in distress.

tesla fail

 

As the auto industry comes down off if its sales high, the first quarter is looking like it will continue on the declining trend. Everyone is feeling the effects, but one brand might be impacted more than others: Tesla. Founded in 2003, the young automaker is facing lots of problems, and some believe it may lead to the brand’s demise. While the numbers speak for themselves, the premature release of the new Model 3 is a further sign of a company in trouble. In fact, it has been released months ahead of schedule.

As expected, it starts with money problems. While it’s still considered a startup, Tesla spends like an established OEM. It reportedly spends $8,000 per minute! Investors may remain interested because of the “potential” of the company’s technology, but the reality is, it isn’t turning a profit. Sales are on a steady decline with the Model 3 selling 24,000 units less in the first quarter compared to the fourth in the US. Considering this along with its hefty $1 million per month loan interest, it’s no wonder Tesla is having a hard time getting ahead.

Customer service is also a problem. There still aren’t accessible service centers for owners. It would be frustrating to own a vehicle of this caliber and have to take it three states away for service. While the company promised to have service centers in every state by the end of April, as of today half of the states don’t have one. The Better Business Bureau gave the company an “F” for how it mishandles customer complaints, sometimes not even responding to them. Tesla dismissed the rating saying that it was based on a small number of consumers, but considering the Model X ranked dead last for reliability in consumer reports, there may be some valid concerns here.

Perhaps all of this can be contributed in part to being spread too thin? The Model S, Tesla’s flagship, still has unresolved issues, and the Model X rescheduled production dates for years before finally going to market in 2015. Production continues to be an issue for the Model 3, which is meant to be the more affordable option for wanna-be owners. Keeping this in mind, buyers can now reserve their 2020 Roadsters, and an electric semi truck is in the works that they claim will be released later this year.

Other problems include several lawsuits and questionable ongoing access to its lithium-ion batteries. While Tesla’s technological innovation is unquestionable, it seems as though the next few years will either define the brand as a new generation of vehicles in the US or it will slowly fall apart.