Exactly 1 year and 2 days ago I concluded that Tesla was tempting too much fate with its auto pilot function. I wrote along the lines that it’s Mario Kart type rainbow road auto pilot function was distracting so much so that owners were taking cellphone screenshots and videos while they were breaking the speed limit. Even worse Tesla CEO Elon Musk was encouraging its use and talking of its infallibility. I wondered whether his legal team had been consulted before he tweeted there were more such gimmicks on their way.
It now appears that Tesla has a 53,000 car recall on its hands and as predicted a class action lawsuit against it. While Tesla’s market cap may have exceeded the likes of Ford and GM it still doesn’t generate a profit. Car makers are the target of ambulance chasers. Toyota know a thing or two about that. How many traffic accidents in Toyota’s spiked after it was revealed they had a sticky accelerator when so few incidents occurred before.
Tesla’s autopilot has killed people who trusted it to save them. It so happens that the lawyers smell blood with a class action being launched as follows:
“The lawsuit, filed by law firm Hagens Berman on Wednesday in California’s Northern district court, said Tesla’s partial autopilot technology was advertised as safe and “stress-free,” but instead “is essentially unusable and demonstrably dangerous.”
“Unwittingly, buyers of the affected vehicles have become beta testers of half-baked software that renders Tesla vehicles dangerous if engaged,” the lawsuit says.”
Tesla cars with the Autopilot 2 features were first sold in October 2016. The first generation of the system was first unveiled in 2014. The Autopilot 2, or Enhanced Autopilot, feature costs consumers $5,000.
That is the problem with Tesla. It is a victim of its own self created bubble. It promises everything but delivers realities far removed from those dreams. Quality control is still an issue and the endless stream of subsidies has to have an end date.
Tesla is valued at 18x more than Mercedes Benz. Musk mentioned how he recently discovered how important production efficiency was. That is much of his battle. Even if he irons out his product glitches the incumbent makers have decades of experience in mass production, distribution and a swathe of new product lining up to challenge the space Tesla has opened. Don’t forget Toyota sold its stake in Tesla. After lifting the hood on its technology Toyota realized it was an empty shell. Let that sink in.