Tesla's Growing Pains

Issue 51

12.28.20 - Tesla is set to make its India debut in early 2021. The company is currently exploring expanding manufacturing into the world’s second most populated market.

Tesla’s global manufacturing expansion has not been without growing pains. A spotlight has recently been put on the chaotic operations of Tesla China.  Revelations of weak quality control, dissatisfaction among workers, and a potentially toxic work environment in the executive ranks under Tesla China’s Tom Zhu.  According to a PingWest article, workers are leaving in droves due to slashed benefits, slashed wages, and slashed stock options, things that were the initial driving incentives in luring employees to Tesla China.

A larger concern for consumers is worries over the alleged decline in quality due to pressures to increase output to meet China’s enormous market demand. As Tesla’s Shanghai factory is also exporting vehicles to Europe and the United States, China made vehicles may potentially see increased recalls.

In Tesla’s European expansion the company is facing pushback from the state at every end. Construction on Giga Berlin was recently halted due to environmental concerns over disturbing sand lizards. A looming question is whether some of Tesla’s regulatory barriers bear another name Volkswagen AG.

German automakers have finally begun to make headway into putting electric cars into production, with Tesla’s market lead in electric vehicles It stands to reason that these companies will work tirelessly to defend their existing market share in Europe.

Source: Brookfield Brief