April 6 :
Despite the release of the much-anticipated Cybertruck finger guillotine, Tesla's deliveries fell precipitously in the first quarter of 2024. Sales fell for the first time since 2020, falling 8.5% year over year. Even in a slower-than-expected electric vehicle industry, analysts point out that it's a "unmitigated disaster" for Tesla. Just so you know, other brands' sales for Q1 were as follows: Hyundai 62%, Kia 88%, Toyota 65%, and BMW 62.6%. When all electric vehicles are included, including Tesla's decline, the EV industry's Q1 2024 saw a 15% year-over-year increase.
However, the decline is not unexpected. What we said last year is coming to fruition: Elon Musk's success is a disaster due to poor design. This is only the first red flag.
If it wishes to maintain its quickly dwindling dominance, Tesla must address the following issues.
1. Outdated model
Last year, I was informed by Adrian Clarke, a former professional vehicle designer who now contributes to The Autopian with design critiques: Tesla's aesthetic seems ancient. He mentioned that the Model S is now ten years old. Even though it's been another year since we last spoke, absolutely nothing has changed. The Models 3, X, and Y are practically identical to the Model S, with just minor proportional differences; they resemble it like no other vehicle in the lineup.
Clarke claims that Tesla's physical design remains "essentially, exactly the same car it was in 2013" despite the company's regular changes to mechanical parts and software. As a whole, the auto industry is always innovating, with new models of cars hitting the market year and bigger redesigns in the works. The average lifespan of a model is seven or eight years, according to Clarke.
Professor Adrian Schafer of mobility and industrial design at German University in Cairo warns that Tesla will fall behind other major players like VW, Toyota, and Mercedes if the company does not introduce new models soon, preferably in 2023 or 2024.
This year, Musk unveiled the Cybertruck, but it has also been a design disaster, with numerous design violations.
There has to be an influx of new models and upgrades for Tesla. We recommend an SUV, such as the BMW iX or the Porsche Cayenne EV, since this is one of the most rapidly expanding segments of electric vehicles right now. Additionally, it need a more reasonably priced vehicle to compete with competitors like the Nissan Leaf, Renault Zoe, and BMW i3. However, according to Clarke, Tesla will not be able to enter this market niche due to a lack of resources and organisational framework.
Maybe he's correct: Reuters has learned from three sources, including internal emails, that Tesla had scrapped its plans for an affordable car—a claim that Musk has strongly refuted.
Inconsistent layout
When the first commercial model from Tesla debuted in 2012, it was a relief that the company's design had never been particularly eye-catching. Clarke informed me that she thought it was blandly handsome. The Model S debuted the look that has come to be associated with the Austin-based carmaker. "Remarkably conservative," said Jeremy Newman, a former designer at Jaguar Land Rover.
People who purchase automobiles, however, aren't usually looking to be style trailblazers. All they really need is an automobile that works for them. Early Tesla customers, suspicious of the new, untested electric vehicle technology, might have been turned off by a daring, futuristic appearance.
Now that everyone is familiar with electric cars, it's time to spark people's interest. Increasing sales show that companies like Hyundai and Kia are offering fresh styles with unique personalities, which is exciting consumers. Even Renault, master of transforming the venerable R5 into a daring electric vehicle, has now shown a lovely and affordable electric variant of the iconic R5. It is really popular.
The Cybertruck is certainly an unusual-looking vehicle. "A cyberpunk or Blade Runner" was the right description, according to Musk. Its design obviously deviates greatly from Tesla's previous offerings. It is anything but boring, whether you love it or detest it. Is it, however, a positive thing? What you ask for can vary. One of the most important modern vehicle designers, Frank Stephenson, panned Musk's unveiled Cybertruck, describing it as "cold, sterile, and almost repulsive."
3. Issues with production
When something is novel and far-off, it could cause production delays and malfunctions. The design of the Cybertruck was so complex that it was quite difficult to manufacture, which caused production delays.
Clarke and others in the business had different thoughts from Tesla, who blamed the supply chain. "Everyone I know in the industry started laughing" when they saw the Cybertruck, Clarke said in an interview last year, because it would be impossible to make. The straight panels of the Cybertruck, Musk acknowledged, were certainly very difficult to manufacture and necessitated unattainable production specifications. All the trucks appear a little bit different because of that.
4. Subpar
Instead of collaborating with third parties to assist with component crafting and manufacturing, Tesla has kept all aspects of manufacturing in-house, which has hampered production capacities and quality. Even if not everyone shares Musk's belief that this technique can lead to a manufacturing cost advantage for the company, he is determined to see it through.
The 2012 addition of Tesla's oversized touchscreen to the Model S is only one example of how Musk's decisions have led to multiple quality difficulties. Tesla used non-automotive quality screens and circuitry. Even if it was daring, the corporation failed to consider the fact that automobile electronics are exposed to harsh lighting and temperature. After the screens stopped working, there was a massive recall that went global, including China, and the NHTSA in the US and the FMVTA in Germany both looked into it.
For a reason, the sector employs suppliers specialising in automobiles to implement designs on parts like seats. Suppliers are specialists in what they do, making it hard for Tesla to compete with them on pricing and quality. Tesla simply does not have the necessary expertise or size to take advantage of economies of scale.
The most serious problems arise from a lack of attention to detail in both the planning and execution stages. The frunk of Tesla's vehicles has been the target of criticism as of late. Pinch sensors and a design that stays away from thick, razor-sharp stainless steel panels could have prevented the disaster.
five. Absolutely no car lots
When consumers have issues, Tesla has a hard time fixing them as the corporation skimps on customer service. A terrible decision in terms of user experience design. According to what Clarke informed me, "they can't take your car away, give you a courtesy car and a nice cappuccino while your car is being fixed" since they don't manage real dealerships. Particularly with the affluent demographic that Tesla serves, this is something that people genuinely appreciate since people value their time.
6. Deceived promises
After nearly ten years of campaigning, Musk finally delivered on his promise of fully autonomous driving—a vehicle that can navigate any road condition and any location without your intervention. While Tesla was leading, competitors like Volvo (which used Waymo technology) and Mercedes were able to defeat them. There are consumer lawsuits and a federal criminal investigation centred on Musk's erroneous assertions about driverless vehicles, and Tesla is also falling behind. Even though it has advanced to version 12, Tesla's full self-driving (FSD) technology is still in beta and isn't even close to being the miraculous AI that Musk promised.
Still, it's only one of many empty promises. From the first Model S to the current Semi, Musk has chronically missed all of Tesla's scheduled release dates.
The Tesla brand has taken a major hit as a result of all this. Compared to 28.4% in January 2022, only 13.4% of respondents in the US have a favourable impression of Tesla in a recent poll. According to J.D. Power's 2022 vehicle quality assessment, which surveyed 84,165 confirmed US owners, the company ranks at the bottom. Out of 28 U.S. brands, Tesla's dependability scores 19th in Consumer Reports' 2022 study.
In 2022, a little over 60% of customers remained faithful to brands including Subaru, Kia, Ford, Toyota, and BMW. A major factor contributing to Tesla's sales slump is the company's dreadful reputation in the public eye. For this reason, S&P Global Mobility predicts that Tesla's share of the U.S. electric vehicle market will fall further until it hits 20% in 2025. "Do you honestly believe that they will rule the car market in twenty years from now?" asked the renowned investor and former professor of business at Columbia University, Bruce Greenwald, in 2021. I don't think so. Three years have passed in those twenty-first centuries. This autumn is more than a mere beep. It foreshadows even more serious problems to come.
