Tesla Has Been Cutting Corners For Years, Blaming Defective Part Failures On 'Driver Abuse': Report
Portfolio Pulse from Adam Eckert
A Reuters investigation alleges that Tesla has been aware of defective parts causing suspension or steering failures for at least seven years, affecting its entire vehicle lineup globally. Despite internal acknowledgment of these 'flaws' and 'failures', Tesla reportedly blamed customers for the issues and charged them for repairs. The company, led by CEO Elon Musk, prioritized new product rollouts and sales over addressing safety concerns. Tesla did not recall affected vehicles in the US or Europe, even after being compelled to do so in China due to regulatory pressure. Tesla has not responded to Reuters' inquiries about the investigation.
December 20, 2023 | 5:56 pm
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Tesla is implicated in a Reuters report for knowingly selling vehicles with defective parts and blaming customers for the failures, avoiding recalls in the US and Europe, and prioritizing sales over safety concerns.
The negative report from Reuters could potentially harm Tesla's brand reputation and customer trust, leading to a decrease in consumer confidence and potential legal and regulatory repercussions. This could negatively impact Tesla's stock price in the short term as investors assess the potential fallout from these allegations.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100