My latest email from The Information highlighted the woes and tribulations of Tesla. There are headlines in all the major media outlets—manufacturing problems at Tesla impacting stock price, profitability, and cash flow.
How would you like to be the engineers who “over automated” the factory according to the boss (Elon Musk)? Want to be the Director of Manufacturing hung out to dry in the Wall Street Journal or The New York Times?
Just consider all this and see how you matter to the company—the employees, stockholders, customers.
From The Information quoting Reveal:
Tesla’s 2018 is starting to look like Uber’s 2017: Every week there is a new allegation or setback about workplace culture or business performance or the quality of its products. In this case, an investigative report by Reveal says that Tesla consistently under-reported ailments suffered by workers at its main production plant. “Everything took a back seat to production,” said a former safety manager, Justine White, who left at the start of 2017. “It’s just a matter of time before somebody gets killed.” Tesla, as is its custom, fired back by calling the report by Reveal, which is part of the nonprofit Center for Investigative Reporting, a tool of an “extremist organization” that is trying to unionize Tesla’s workers and that reporters misunderstood how injuries are reviewed. We suggest reading the Reveal report and Tesla’s response, and coming to your own conclusion. (the Reveal)
And another quote from The Information about a class action lawsuit where the former director of manufacturing is giving information to the plaintiffs.
It’s not common for a shareholder class-action lawsuit, typically filed after a stock’s value has fallen precipitously, to get buzz among reporters. But this one against Tesla and its CEO Elon Musk seems unique: No fewer than 11 former workers at Tesla, including an ex-director of manufacturing at the company’s main car-production plant, provided information to the plaintiffs’ lawyers who filed the suit, according to an amended filing from March 23. It alleges Musk knowingly made false statements to investors that Tesla would be able to make 5,000 Model 3 sedans per week by the end of 2017, despite being told by his subordinates that that would never happen and continued to do so in the face of mounting evidence. Tesla’s stock dropped in price by 20% between May 2017 and November of that year, after it became clear that production target would not be met—not by a long shot. Five months later, the production pace is about 2,000 per week, Tesla has said. A spokesman for the company didn’t immediately respond to a request for comment about the suit, which is worth reading.
We have an important role within our companies. We must always consider that. Sometimes even being required to tell overoptimistic executives the reality of manufacturing.