It’s Not a Good Week for Tesla and Elon Musk

By NTK Staff | 07.07.2017 @7:00am
It’s Not a Good Week for Tesla and Elon Musk

Tesla's stock is falling, its Model S fell short on a safety test, and female employees at the company are calling work a "predator zone" for harassment.

It’s not a good week to be Tesla or its leader, Elon Musk.

From its stock price to government safety tests to sexual harassment in the workplace, Tesla is suffering from its worst week in recent memory.

Here’s a rundown of the headlines Musk and his team are facing.

STOCK DIVES

As of Wednesday, Tesla’s stock had taken a seven percent dive on the day after the July 4 holiday. Why? TechCrunch explains:

Yesterday Tesla announced they delivered 22,000 cars in Q2 2017. While this puts them on track to beat their 2016 year-long deliveries of 76,000, it’s less than expected, which Tesla attributed to a “severe production shortfall of 100 kWh battery packs.”

And this morning, Goldman Sachs dropped their price target from $190 to $180 on concerns that demand for the older Model S and Model X cars have plateaued and Tesla will have trouble meeting upcoming production goals.

The bigger picture is even worse. Quartz reported on Thursday that Tesla has shed “more than $10 billion in market value over the past two weeks,” from its all-time high on June 23 of $63 billion.

SAFETY FAILURES

Tesla fell short of competitors like Ford and Toyota in recent government safety tests, Reuters reported on Thursday:

In the test, the seat belt in Tesla’s Model S was not effective and could lead to the driver’s head striking the steering wheel hard through the air bag, according to the report.

“PREDATOR ZONE”

The most concerning long-term development for Tesla, though, may be accusations from female employees that the company is a “predator zone” for sexual harasment.

Other companies at Silicon Valley have faced similar accusations in recent months, and Tesla appears to be the latest domino to fall in what’s becoming an epidemic:

The March town hall meeting revealed stunning accounts of routine sexual harassment at the company, the Guardian newspaper first reported. The meeting took place at the clean-car company’s Fremont, Calif., headquarters, but CEO Elon Musk did not attend.

One employee described Tesla as a “predator zone” for male employees to mistreat and sexually harass their female counterparts.

In February, after complaints about working conditions at Tesla, Musk promised his workers free frozen yogurt stands and a roller coaster inside Tesla’s factory.

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