3. Product Defects
Due to highly complex engineering for innovative vehicles, Tesla’s cars and other energy products have exhibited major flaws in many cases. The defective products often have weaknesses in design, manufacturing, and other features which can harm the company’s image permanently.
4. Long term confidence
For any company, the assurance of long term sustainability is essential to maintain the public image and the company’s morale. Tesla, due to its unstable manufacturing conditions, suffers from disbelief among the public about its long-term existence, which can result in a deficiency in further business development.
5. Custumer Adaptation
Any business run along the lines of customer’s acceptance. If the public is ready to adapt change, companies benefit from the innovative range of products. However, it can be a slow, unforgiving process, producing new challenges for companies like Tesla. The organization highly depends upon customers willingness to adopt electric vehicles.
6. Self-Driving Cars Are Still a Concern for Pedestrians
In a survey from YouGov, US adults still feel unsafe to walk around self driving cars. Especially, people above the age of 55 are the most afraid to be around self-driving vehicles.
Image Source: Statista
7. Disruption of Supply Due to Shortage of Materials
Tesla can face major suspensions in the supply of manufacturing materials due to the increased prices. The company uses aluminum, steel, lithium, nickel, copper, and cobalt, as well as lithium-ion cells from suppliers. All these materials have volatile prices, which can affect the company’s production line severely in the future.
8. High-Risk Factor Due to Usage of Lithium-ion
Tesla uses lithium-ion cells in their battery packs. Lithium is a highly reactive and explosive element, which increases the risk factor of our products. Tesla has faced a a few cases where their cars have caught fire and vented smoke, which has defamed the company on a major level.
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