The Model 3 is here, and it’s distinguished. However, Tesla’s customer service, production timelines, and overall profitability are not. So what are the company’s next steps to stay at the forefront of the industry?
Bumps in the Road
The Model 3 is here — at least a few of them. Tesla has released 30 of the estimated 500,000 vehicles that own been reserved. The overwhelming number of orders and final week’s fanfare at the release of the electronic, autonomous car are indicative of how highly Tesla’s product is revered by many.
However, a distinguished product alone is not enough to guarantee a company’s success. So how is Tesla looking on other fronts?
Well, not super. For one thing, Tesla’s customer service does not seem to own been prepared for the challenges presented by the Model 3’s release. People who own tried to cancel their Model 3 reservations own reported that their refunds regularly engage more than a month to reach — some say they’re still waiting after three months.
This is a far bawl from the “refunds can engage up to three weeks depending on your country of delivery” Tesla had stated on their “Frequently Asked Questions” page, according to Wired – although Tesla seems to own removed this from their website.
Also, by Tesla CEO Elon Musk’s own estimations, the car marker is facing “six months of production hell” to release the targeted numbers of Model 3 vehicles. The difficulty in mass producing a vehicle with approximately 10,000 unique components is going to be extreme.
And the Model 3 is not the only production challenge Tesla must overcome — it also has at least four other vehicles in the works. The Model Y, a original Roadster, a pickup truck, and an autonomous semi-truck utter own estimated release dates around 2019 — and each of these vehicles are ambitious and challenging in their own way.
For example, the Model Y will likely be built on an entirely original, more automated platform, and its design goals include increasing cargo space compared to the Model X while maintaining a similar range of at least 383 km (238 miles) per charge. utter of this is on top of Elon Musk’s reported goal of producing one million of the vehicles at a lower price tag than the Model X by 2020.
A Long Journey Ahead
utter of these projects will require an explosion in Tesla’s productivity compared to even final year, when it produced 83,922 vehicles. However, Tesla will likely be spending at least half of the time between now and then getting production of its Model 3 up to speed. Is the company likely to total so many challenging projects in the space of a couple of years?
Probably not, whether the recent stock market has been any indication. Despite the rave reviews of its latest offering, Tesla continues to be an unusually volatile automaker, which actually has some investors betting against its success in the coming week. While Friday’s release of the original vehicle gave Tesla’s stocks a boost, attaining a high of $339, the company’s value never regained the record high it reached in June. Additionally, Friday’s bump has since evaporated, with stocks falling and climbing again since.
These concerns also present themselves in the numbers for Wednesday’s moment-quarter earnings report. While Tesla’s revenue increased, its earnings per share is still negative — in keeping with the company’s recent trend. In other words, Tesla is selling more cars, but its production costs and other financial burdens are lowering the company’s value.
What it utter boils down to is that Musk really has his work reduce out for him. Tesla has some distinguished products, but to say its timeline for original vehicle production is a small overly ambitious is an understatement. Tesla’s first task will be to streamline production of the Model 3, its customer service support, and its associated infrastructure. The other projects will need to engage moment seat to this.
And Musk, just remember — we’ll utter still be here until 2025. It’s OK whether it takes you a few more years to procure some of these projects done.