Tesla Facing Distribution And Autopilot Problems

2016 Tesla Model X

Launching a new automaker and taking it mainstream is a huge task. The fact that Tesla Motors has made it this far is nothing short of amazing, but the company is facing rough waters. A growing controversy around Autopilot and distribution issues could be defining moments for Tesla moving forward.

After one driver crashed and died with his Tesla in Autopilot, another says his Model X rolled at highway speeds while Autopilot was on. Thankfully nobody was hurt, but the SUV clipped a guardrail, bounced off a concrete barrier and then rolled, showing another potential danger of the semi-autonomous tech. The Pennsylvania State Police are going to cite the driver, even though Autopilot was engaged, and that’s not making a lot of people happy. Tesla, unlike Volvo, won’t take responsibility for crashes when Autopilot is on.

On top of all that, it’s come out that Tesla didn’t disclose the fatal Autopilot crash until after it sold $2 billion shares in May. Plenty of people think that doesn’t look good.

Adding to the problems is the fact that Tesla’s churning out more cars, but struggling to deliver them to owners. This could be where the whole direct sales model goes awry, because Tesla has aggressive production goals that will only make the problem worse. Will it break down and work with franchised dealers? Elon Musk hasn’t completely killed the idea in the past, so maybe.