Is This the Fall of Tesla

by Raaghav Bhardwaj

Tesla is the largest innovative electric company around, and is so for a good reason. Tesla has continued to prove their worth in the electronics world by producing a mass amount of electric cars. These cars are fully operational and have been proven time and time again to be technologically advanced. Tesla uses their high power AC induction motors in the Model S, Model X, and their new budget Model 3. All three of these high production electric vehicles are being mass produced and sold to the public each day. Being able to own one of these electric machines is a statement just in itself.

Even though Tesla is such an advanced company, they still are facing a downfall in stocks and vehicle production. For example, the company “Autoweek” conducted research and stated,”If you are at the end of the line, it will take 17 months to receive your vehicle.” The reason this is happening is because Tesla is accepting too many orders and are charging less for a car that is worth more. For example, the Tesla Model 3 is a car that sells for 57,000 dollars at the maximum variant. When you buy a Model 3 at the maximum variant, you are paying 57k for a car that is fitted with technology that is worth 80k. For example, in the Model 3, the Induction motors are the same as the Model S motors. The Model S is an 100k dollar electric vehicle which uses the same motors that the Model 3 uses in its chassis. This is just one of the many reasons Tesla is losing money; however,there is still one other major reason.

Tesla is also backordered, which means that people are ordering certain car,s but those cars are taking much more time to be built than people are ordering them. For example, the Model S and the Model 3 were ordered more than 260,000 times in March 2018. Now, it is September 2018, and a CNN report states that, “Tesla will approximately lose 6 billion dollars in loss due to the backorder issue.” Tesla also has a backorder problem with the vehicle replacement parts, which has had a heavy cost on the company. This is not even  mentioning the fact that Tesla stocks are overpriced and losing value within each share almost every month.
Tesla still has very long lines for those who are waiting for the Model which is causing many issues for their company. Although I do support Tesla, I believe they are going to lose large sums of money because of this issue. As CNN stated before, “approximately 6 billion dollars will be lost. Is this going to be the reason Tesla does not succeed or will they continue to prove their excellence?” I believe that Tesla is making a sacrifice to execute the Model 3 plan, but have they made a big mistake?  

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