Tesla Inc TSLA has reportedly been blaming customers for part failures even though the EV company knew the parts were defective.
What To Know: Tens of thousands of Tesla owners have experienced premature failures of suspension or steering parts and many of those customers were left to foot the bill, according to a Reuters investigation.
After reviewing thousands of Tesla documents, Reuters found that the premature part failures have plagued Tesla for at least seven years. The problems span Tesla's entire vehicle lineup and have been widespread across the globe.
The report details experiences from more than 20 Tesla customers and includes interviews with several former Tesla managers and service technicians.
Tesla owner Shreyansh Jain, for example, told Reuters she bought a new 2023 Tesla Model Y earlier this year before the vehicle came to a "grinding halt" one day later. With just 115 miles on the vehicle, the front-right suspension collapsed, causing the Model Y to stop in the middle of the road.
The repair costs totaled $14,000 and Tesla required Jain to pay for the repairs as the company said the accident was caused by prior suspension damage.
The report indicates that Tesla engineers referred to the problems internally as "flaws" and "failures" and suggests that Tesla was well aware of the frequency and extent of the problems, but failed to properly disclose such to customers and regulators.
The company also sought to pin repair costs on customers despite tracking the issues for years, according to Reuters. Unlike traditional automakers, Tesla sells directly to customers and owns and operates many of its service centers, which gives it real-time visibility into part failures.
Reuters also reported that Tesla CEO Elon Musk regularly dismissed safety concerns related to customer complaints and instead pushed to roll out new products and drive sales despite being aware of part flaws.
From Last Week: Tesla Issues Massive Recall Of Over 2M Vehicles Over Autosteer Concerns
Between 2016 and 2020, Tesla reportedly received more than 400 complaints related to aft-link failures in China. Records reviewed by Reuters showed that Tesla redesigned the part four times in an effort to fix the problem.
Tesla avoided recalling the vehicles until China regulators made the issue public. China’s State Administration for Market Regulation noted that the aft-link failures put drivers at “risk of accidents.” Tesla still did not recall the vehicles in the United States or in Europe and instead told regulators that the failures reported in China were being caused by "driver abuse." The EV maker also reportedly instructed its service centers to blame similar part failures on "vehicle misuse."
According to the Reuters investigation, Tesla owners have filed approximately 260 complaints with the National Highway Traffic Safety Administration this year related to steering and suspension problems. Tesla has less than 1% share of vehicles on the road. For comparison, GM has received 750 complaints and has 21% share and Toyota has received 230 complaints and has 15% share.
Reuters indicated that neither Tesla nor Musk responded to their detailed inquiries regarding their investigation.
Photo: courtesy of Tesla.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
