Tesla Motors Admits The Mistakes Its Made With The Model X

Elon Musk was honest about how somewhere along the way they made a few wrong decisions with the Model X.

Tesla Motors revealed its earnings report on Wednesday during the call the chief executive officer, Elon Musk stated that the company has been problems vamping up the production of its latest electric automobile the Model X. He added that despite the problems in the production system, the organization will try to grow the production of the new SUV significantly; additionally it will also reveal and start delivering its low cost vehicle, Model 3 during the year as well.

For the latest quarter, the auto-maker reported lower than expected earnings and revenue. The stock of the automobile giant has been suffering since the beginning of the year due to various long term and short terms decision that have been taken by the management of the organization. Since the beginning of 2016, Tesla Motor’s stock has dropped by as much as 37%. The investors and shareholders are more concerned about the slow production of the Model X which was supposed to be an ‘all-that vehicle’.

However Elon Musk justified the slow production along with admitting a few of his mistakes opening on the call as well. He stated that there was a major mistake that the business made with the latest SUV (Model X) which was that they put too much technology and features in the car, all at once. He added that it would have been much better if, in the first Model they introduced a few features and added the rest of the features and technologies when it decided to upgrade the vehicle. But that is not all that the CEO talked about, he gave the praise the car deserved in front of the investors as well. Even at this point he believes that the Model X is a very impressive vehicle and he does not understand how someone would not love the car.

Amongst the issues that the company faced, it stated that most of them very ‘counterintuitive’; and the major problems were with the seals that took a while to get by and the CEO described the situation as ‘huge pain’. The door seals were the problem as they were first redesigned and then later fit in with hands. There was also news that the auto-maker sued its German auto marts marker as because of them the production of the X Model was slow.

Due to the slow production, the company only managed to sell over 206 units during the last quarter. In the first half of the 2016, the automobile maker has promised to deliver as many as 16,000 units of Model S and Model X. However during the previous quarter, in comparison, the company managed to deliver 17,478 vehicles to its customers. The CEO has described the production of the latest model as ‘lower than expected’.