Tesla: The Brand Slowly Losing its Value due to its System Malfunction in the Cars

Does it seem like Elon Musk is trending every day? It's because he is; he's either pumping billions into Bitcoin or sending out cryptic tweets to shake the stock market. It's all part of Elon Musk's brand, that of a cool billionaire. He's used this brand to drive his auto company’s growth, called Tesla, the world's most valuable car company today. The Tesla brand is a frenzy, but what about the actual cars? A string of technical issues has hit them. Regulators in the US and China have pulled up company executives. Thousands of vehicles, tens of thousands of cars have been recalled. It's a massive challenge for this company, and it comes ahead of Tesla's biggest debut, its entry into the Indian market.

The Evolution Of Tesla

Every decade has an automotive favorite, a car that beat out its competitors to capture the public imagination. The 1940s was the Jeep’s decade, rugged all-terrain vehicles, a staple of the world war. In the 1960s, the Mustang arrived, all American muscle emblematic of a radical America. In the 21st century, few brands can claim such glory. One of them is Elon Musk's Tesla, a company that builds cars for the future. Tesla is buying up bitcoins. It's building cyber vehicles, all very cool. But remember, the Jeeps and Mustangs were superior machines.

What mattered was the performance? So, where does Tesla rank on that indicator? Not so highly considering recent events.

In January, U.S. regulators asked Tesla to recall 1,58,000 Cars.

Reason: Faulty touchscreens, and for Tesla's, that's a deadly blow. Because the cars are completely operated using this big central console, the autopilot, rearview camera, air conditioning, navigation, everything is on it.

A failing center console would render Tesla's undrivable, the recall wasn't limited to America. Earlier this month, Tesla called back more than 36,000 vehicles in China. The third recall since the last quarter of 2020. Tesla has admitted there's a problem. When the memory device on the central console is overwhelmed, the touch screen acts up, in some cases even going blank. Tesla's troubles in China don't end here. Chinese regulators and transport authorities recently summoned it. Customers were complaining about acceleration irregularities, battery fires, and software upgrade failures, all severe issues. Tesla has promised to investigate the problems and comply with Chinese regulatory norms.

Chinese regulators have ordered representatives of US electric car monster Tesla after reported technological dilemmas with their vehicles, notably regarding their safety, officials in Beijing said Monday.

The report comes several months after two recalls of the corporation’s vehicles in China, the world's largest car market.

"Consumers have mentioned multiple problems, related to extreme accelerations, batteries seizing fire, as well as with the remote update system," the State Administration for Market Regulation said in a report.

Will Tesla sees its Growth in India?

These red flags coincide with a critical moment in Tesla's growth story, its debut in India. Before the pandemic hit, Indians were buying more than four million cars every year, making it one of the world’s biggest auto markets, and unlike in the West, it has massive untapped potential. The million-strong middle class eager to buy their first car and with diesel being phased out, battery-powered vehicles will be much sought after. Enter Tesla is already registered in Bengaluru, and the flagship model three is expected to roll out in June. But if the technical issues persist, the Indian consumers may not be as forgiving as their Western counterparts. The electric car industry is still finding its feet in India. A massive recall. Like China and the U.S. may destroy consumer confidence, Tesla's India debut is a make or break moment for the company. It is here that global brands falter or catapult to immediate success.