The first quarter of 2019 was a massive blow to Tesla as it lost a whopping $7 million due to issues stemming from complaints regarding Model 3. It didn't help much that some executives announced their exodus from the electric vehicle (EV) giant.
As Tesla continues to struggle with its multiple problems, industry analysts noted that there are still ways through which the company can recover this year as it is still the second quarter of 2019.
According to the experts, here are some of the problems Tesla should tackle and steps it will most likely take moving forward in the name of recovery.
Problem 1: Management Style
A number of current and former employees hinted that the company may be having management issues. The company has been cutting down on workers, prompting lower confidence on what was once among the Top 10 LinkedIn top companies.
Aside from continuous layoffs, two executives will be stepping down from the board following Tuesday's 2019 shareholders meeting. Linda Johnson Rice and Brad Buss will leave their posts while another two will step down sometime next year.
Resolution to Problem 1
Some industry analysts noted that Tesla is on the move to regroup following apparent loopholes in management that could have contributed to the company's Q1 2019 woes. The company has already nominated Ira Ehrenpreis to be re-elected into the board but a major proxy advisor urged against The nomination on grounds of increasing equity awards.
Director Kathleen Wilson-Thompson is also up for re-election into the board, with bigger support compared to that of Ehrenpreis. Industry experts said Tesla's efforts to regroup and reshuffle the board could pave the way for improved administration.
Problem 2: European Demand
It was initially forecasted that Tesla's Model 3 would most likely be welcomed by buyers outside North America after demand softened earlier this year. However, May orders disappointed analysts.
Resolution to Problem 2
Industry analysts believe the auto company will find a way to meet expectations on new features for the Model X and Model S. Now that eyes are sour on the Model 3, experts believe Tesla will focus on improving its other EVs for a breath of fresh air.
Problem 3: Model 3
Yes, the Model 3 is among the problems that Tesla should address soon. While the EV has been recognized by most industry analysts as a success, others believe there are issues to be addressed accordingly and immediately.
Critics and clients have contrasting views about the Model 3 sedan but analysts noted that cumulative sales such as that in Norway will still determine whether the EV was indeed a victory for Tesla or not. This is especially true now that figures unraveled slower demand both in Europe And other previously avid Model 3-buying countries.
Resolution to Problem 3
Tesla should keep on improving the Model 3 sedan even if some notable EV reviewers already said they noticed progress in the car's build quality. There is always room for improvement, as the experts used to say.
Problem 4: Asian Markets
Tesla has yet to leave a very significant trademark in Asia. Analysts previously urged the company some years back to infiltrate large markets in the region. This time, an opportunity in China could pave the way for Elon Musk's company to sell in the ASEAN circle.
Resolution to Problem 4
Tesla is expected to create breakthroughs in sales deal with Chinese companies. The US automaker already held meetings with some of China's leading EV manufacturers. Analysts believe joint ventures with China will help improve Tesla demand in the world's second-largest economy.
Problem 5: Workforce Culture
With figures of company confidence going down following disappointing Q1 2019 losses, Tesla may need to look into how it should improve its working environment for employees who are willing to help the company achieve its ultimate goal of environmental sustainability.
Resolution to Problem 5
Experts believe Tesla is mulling ways on how it could reverse fallen employee confidence figures early this year. Elon Musk, after all, has been recognized for his ability to achieve almost impossible heights.
Tesla has gone through numerous downturns and a number of notable victories over the years ever since Musk and his co-founders established the company in October 2008. Over a decade later, the Palo Alto-based EV leader is faced with scrutiny, lower employee confidence, and weaker demand.
Amid all the headwinds Tesla needs to overcome this year, some analysts are still confident that Musk and his people can withstand the beatings, bounce back with a fiercer and more resilient built, and unveil a pickup truck that could bring about the much-required mass support it was showered with when the Roadster first came out.
