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Disappointment Is Part of The Tesla Motors Inc (TSLA) Experience

Tesla Motors Inc (NASDAQ:TSLA)

There are many words that one could use to describe Tesla Motors Inc and its high-end car brand. You would encounter very little pushback by referring to the U.S. luxury car maker as innovative. Indeed, the last 13 years since its incorporation has seen Tesla build a huge reputation and collect numerous awards for its game-changing approach to driving.

Tesla Motors Inc (TSLA) Factory Freemont, California

Using the word “luxurious” to describe the EV motor brand would go mostly unchallenged as well. Over the years, the Freemont, California automaker has come to be recognized as the pinnacle of luxury on the road. Its Model S sedan stands as America’s best selling luxury EV and scored the highest rating ever given by Consumer Reports. Beside the Model S is its younger SUV sibling, the Model X, which could very well be the avatar of pure opulence on wheels.

Exclusive? Certainly. Tesla Motors could not have risen to the top of the EV market by falling in line. The firm’s innovative take on motoring repeatedly sets distinctions between itself and other luxury car makers in the industry. As if creating sleek, luxurious and equally sporty cars that run on lithium-ion batteries wasn’t enough to set it aside, the EV firm crams heaps of unique perks into its cars. These only add new dimensions to what we see as luxury.

The Tesla Experience

Owning a Tesla means you’ll never have to worry about the cost of refueling your car. With free use of Tesla Superchargers, the automaker rids it user base of the nagging insecurities that comes with not knowing how the next gas price increase will affect your budget. Luxury for Tesla Motors is extreme piece of mind and the company best offers this by ensuring the safety of its drivers. CEO Elon Musk and his EV firm never go too long without reiterating that safety is Tesla’s number one priority.

Recent news brought our attention to how the security offered by Tesla EVs isn’t simply limited to road safety. The World Health Organization reports that, soon to be more hazardous than being run over, shot or getting terminal cancer is the growing threat of air pollution. As such Tesla Motors Inc is taking measures to protect people from the “more statistically relevant” threat of hazardous air. The HEPA hospital-grade filtration system seen on the Model X and new Model S are capable of purifying extremely polluted air from toxic levels down to clean, breathable air that is virtually free of all pollutants.

You could literally survive a military class chemical attack in a Tesla, the company assures.

There is also the hidden sporty side of all Teslas. Supercar speed can be derived from the Model S sedan with ease. The Model X too can take off faster than most car when engaged in Ludicrous Mode. What Tesla has proven is that opting for cleaner motoring solutions doesn’t mean you have to sacrifice the fun of driving. In fact, with Tesla, drivers actually gain a whole lot and lose nothing but their taste for gas cars.

Disappointment and Tesla

However, with all its bells and whistles and repeated success, there are still a still a few negative words you could attach to Tesla. Yes, Elon Musk and his EV company repeatedly bring smiles to motorists and EV fanatics around the world but have also disappointed us more than we would bother to count. Tesla Motors and disappointment go hand-in-hand.

One could list the numerous setbacks and delays in the arrival of every Tesla EV. This is not limited to its flagship sedan and recent SUV either, but similar delays are likely to be seen in the production of the company’s upcoming Model 3 as well. This isn’t mere speculation either. Rather, the suggestion was made by Musk himself at the firm’s Q1 earnings call earlier this week. The CEO said that the 1st of July 2017 is when the Model 3 is expected to go into production. Although, due to issues within its supply chain, the firm is likely to miss that deadline.

There is the disappointment that comes with the many recalls that Tesla EVs have been subjected to. From faulty refueling facilities and door handles, to defective seat latches and buggy software. The electric car giant continues to let us and itself down. Musk had said Tesla’s over ambitious promises are the reason behind many of its delays. Like the Model X, the firm found itself building a car far more complex that it had imagined.

We can’t hate Tesla for dreaming big, but we can expect it to learn from its mistakes. Waking up one morning to find that there’s something life-threateningly wrong with your Tesla is now a fixed and unsavory part of the Tesla experience.

Disappointed Investors

Then, there is the the matter of the company’s financial position. Tesla has been revealing losses quarter after quarter for years and shows no sign of stopping this trend any time soon. The company had said the first quarter of 2016 would be the first positive earnings call. Alas, investors were left disappointed as Tesla came around $280 million from break-even.

Tesla also says it will produce half a million cars a year in 2018. The company will produce 90,000 EV by the end of this year it hopes. What’s difficult to believe is that the firm will spring from making less than 100,000 cars a year to pushing 500,000 in the space of 24 months. Even when ignoring the firm’s track record of failed over-promises, one would still reserve a reasonable degree of skepticism about this jump.

It seems Tesla  has already accepted that the Model 3 will be late. A delay of only a few months would likely see the EV start delivering some time in 2018. The Model 3 will be it’s fourth car after the recent Model X. It is promised to be a 215-mile-plus mid-market EV that will cost $35,000 at standard. Reports state that pre-orders for the car are swelling around the 400,000 mark. It is still over a year away from production and delivery won’t begin until at least the end of 2017.  Prepare for a little more disappointment.

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