Brendan McDermid/Reuters
- Tesla and its CEO, Elon Musk, can’t seem to avoid controversy.
- From Musk’s unconventional approach to the chief-executive role to concerns about the safety of Tesla vehicles and its California factory, the electric-car company has faced questions about seemingly every aspect of its business.
- The electric-car maker’s ability to manage and avoid controversy in the future could play a role in determining whether it will achieve its long-term goals.
- Visit Business Insider’s homepage for more stories.
Tesla is one of the most divisive companies on Wall Street.
While its vehicles have won praise and a passionate fanbase, the electric-car maker and its CEO, Elon Musk, can’t seem to avoid controversy.
Read more: Elon Musk says he’s going to spend his 48th birthday trying to fix one of Tesla’s biggest weaknesses
From Musk’s unconventional approach to the chief-executive role to concerns about the safety of Tesla’s vehicles and California factory, the company has faced questions about seemingly every aspect of its business. That may explain its perennially volatile stock price and reveal why it can be difficult to predict Tesla’s long-term performance.
These are 18 controversies that Tesla has faced in recent years.
Have you worked for Tesla? Do you have a story to share? Contact this reporter at mmatousek@businessinsider.com.
A tweet about taking Tesla private
Lucy Nicholson / Reuters
Musk and the Securities and Exchange Commission (SEC) have been at odds over the past year.
The agency sued Musk in September 2018 after he tweeted that he had secured the funding necessary to take Tesla private, alleging that Musk had misled investors about the likelihood of a go-private deal. A few days after the lawsuit was filed, the parties settled.
Under the terms of the settlement, Musk didn’t admit or deny the allegations in the agency’s lawsuit against him but had to step down as the chairman of Tesla’s board of directors for three years. Musk and the company each had to pay a $20 million fine, and Musk is required to get approval for all future postings on social media that could be relevant to Tesla shareholders.
The SEC accuses Musk of violating their settlement
Brendan McDermid/Reuters
The SEC said in February that Musk had violated the terms of their settlement by not receiving approval from Tesla’s legal department before tweeting a prediction about Tesla’s 2019 vehicle production.
The agency asked a judge to hold Musk in contempt of the federal court that approved the settlement. Musk and the SEC ultimately revised their agreement to specify the topics that require approval before Musk can tweet about them.
Vehicle fires
YouTube/KPIX CBS SF Bay Area
Vehicle fires have become a point of controversy for Tesla because of incidents that have occurred both after collisions and without any visible impact.
Musk has said the company’s vehicles are less likely to catch fire than gas-powered ones, but data from the National Fire Protection Association suggests the opposite.
There have been at least 20 reported incidents in which a Tesla has caught fire since 2013. According to The Drive, at least eight Tesla vehicles appear to have caught fire without being involved in an accident.
See the rest of the story at Business Insider
See Also:
- Tesla rival Nio is recalling around 4,800 vehicles after 3 caught fire
- Tesla is reportedly trying to make its own battery cells as its relationship with Panasonic becomes more tense
- I checked out Honda’s $5 million private jet, one of the cheapest in the world, and saw just how much your money gets you
Source: Business Insider – mmatousek@businessinsider.com (Mark Matousek)