Tesla, a US electric car company that has been a symbol of innovation, is going downhill due to business deterioration and quality problems. Tesla`s innovations and creativity are disappearing as electric cars and self-propelled technology become increasingly common, and the industry is pessimistic that Tesla may disappear within a few years if realistic management improvements and production expansion are not done right away.

While Tesla is focusing its attention on new models such as electric commercial vehicles and high-performance electric sports cars, Tesla`s growth potential and future vision are not the same as before. Industry and experts focused on realistic issues such as Tesla`s financial and manufacturing disruptions, rather than evaluating and interested in new models, and pinpointed Tesla`s uncertain future.

In the United States, Tesla is running out of funds quickly and expects to hit bottom in August next year. Some local media have reported that Tesla spent about $ 8,000 a minute in the last 12 months, and that this trend would make money early next August. Tesla has spent as much as $ 5 billion over the past two years in the banking sector, and if Tesla seeks additional stocks or a junk bond market as before, Tesla is a sign that Tesla is no longer hopeful.

Even General Motors (GM) vice president Bob Lutz has asserted that Tesla will not last long. He said Tesla had problems with electric vehicle manufacturers, such as cost problems and inefficient production processes, and that they did not have a proper sales network. There is no unique technology of Tesla. "Tesla will not be able to go to 2019," Roots said. "There is no way Tesla cannot duplicate easily by other automakers."

In fact, since 2003, Tesla has been unable to make profits in just one year, and the business situation is getting worse. The deficit is steadily rising from $ 74 million in 2013 to $ 294 million in 2014 and $ 899 million in 2015. Despite a slight loss of $ 675 million last year, the loss is likely to increase this year. Tesla is recording losses of nearly $ 1.3 billion in the third quarter of this year.

Consumers are turning their backs on lack of production capacity. The annual production of the model S and model X, the flagship models, is only 80,000 units, which is not comparable to that of existing automakers producing millions of cars annually. We started selling the entry-level model 3 at the beginning of last year, but the production volume of the model 3 in the third quarter of this year was 260, which was less than the pre-reservation quantity of 500,000 units. As a result, it is known that consumers are canceling their contracts globally. Tesla has suffered from a supply disruption and is facing a crisis of class action lawsuits from its shareholders.

Stock prices have also plummeted recently as the company`s management debacle has come to the board. In April this year, Tesla`s share rose to $ 312, bringing the total market value to $ 50.9 billion, surpassing GM`s $ 100 million mark to become the best value car business in the United States. However, the share price has fallen by 20% in two months since September. The industry expects that investors will continue to escape from the model 3 due to production disruptions, poor performance, and financial difficulties.

No one denies Tesla`s role and merit in recognizing and commercializing electric cars. However, the point that Tesla`s value is overvalued compared to actual enterprise value and business contents is now popular. In order for Tesla to survive in the future, it is pointed out that specific measures should be made for a more realistic vision and profit-sharing.

"It`s certainly true that Tesla has accelerated the market for electric cars, but the business is cold," an industry official said. "It`s really hard to overtake the existing carmakers who have built up their technology and production systems for years and have spent a lot of money." .

By Choi Yong Soon cys@


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