Tesla is racing to make and deliver the Model 3 sedan and prove the skeptics wrong. This comes in the wake of a string of negative news from the electric car company including regulatory scrutiny over failure of its Autopilot, a driver-assistance system. The credit rating of the electric car firm has also been downgraded to junk by Moody‘s and this has been attributed to production challenges as well as mounting obligations which would make it necessary for Tesla to raise over $2 billion to avoid depleting its cash.
Though deliveries of the Model 3 started last year in July the production targets have been pushed back several times with issues such as assembly line automation and battery output being cited. Earlier in the year Tesla indicated that in the first quarter the car firm would only manage to produce around 2,500 cars per week.
Model X crash
Other challenges facing Tesla include regulatory scrutiny with regards to the Model X fatal crash that involved a driver-assistance system that was engaged at the time of the incident. In a blog post that was published by Tesla the electric car firm said that the hands of the driver who perished in the accident were not placed on the steering for a period of six seconds prior to the vehicle colliding with a barrier. The driver had received a couple of audible and visual warnings earlier.
The U.S. National Transportation Safety Board is now unhappy with the disclosures Tesla has made before it has concluded its own investigations. The transportation regulator has indicated that a preliminary report will be published in the next couple of weeks.
“The NTSB is looking into all aspects of this crash … our next update of information about our investigation will likely be when we publish a preliminary report, which generally occurs within a few weeks of completion of field work,” said a spokesperson for the U.S. national Transportation Safety Board, Chris O’Neil, in a statement.
Additionally Tesla also recently recalled its Model S luxury sedans that were manufactured before April 2016 with a view to retrofitting a power steering component. According to Tesla the recall of the 123,000 cars was instigated by an observation of power steering bolts becoming excessively corroded on the affected vehicles. In the event that the bolts failed, it would still be possible for drivers to steer the car but they would have to increase the force applied.