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Enlarge (credit: Aurich Lawson | Getty Images | Beata Zawrzel)
No car company in recent years has been able to generate more news headlines than Tesla. Its original founders were among the very first to realize that lithium-ion laptop cells were just about good enough to power a car, assuming you put enough of them in a pack, and with critical funding from current CEO Elon Musk, the company was able to kick-start an electric vehicle revolution. But those headlines of late have been painting a picture of a company in chaos. Sales are down, the cars are barely profitable, and now the CEO is culling vast swaths of the company. Just what is going on?
Tesla had some good times
Always erratic, Musk's leadership has nevertheless seen the company sell electric cars in volume, profitably. What's more, Musk has at times been able to inspire faith in and devotion to his company's products in a way that makes the late Steve Jobs look like a neophyte—after the Model 3 debuted in 2016, 450,000 people gave $1,000 deposits to Tesla for a product that wouldn't go into production for at least 18 months.
Of course, that example also illustrates a long-running concern with the company and Musk's investment-attracting pitches: overhyping and underdelivering. By 2018, more than one in five reservation holders wanted a refund after cheaper models were delayed and delayed.
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