Tesla Motors Inc (NASDAQ:TSLA) Is Not “Hotbed for Racist Behavior”

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Tesla Motors Inc (NASDAQ:TSLA), TSLA, Model X

Tesla Motors Inc (NASDAQ:TSLA) responded to a lawsuit accusing it of being a “hotbed for racist behavior”. The company in a blog post has stated that it will fight the accusations of plaintiff Marcus Vaughn in the trial. The company does not intend to settle the plea. Keshia Hannam from Fortune provides a detailed account.

‘Hotbed of Misinformation’: Tesla Slams Lawsuit Accusing it of Widespread Racist Behavior

Addressing the lawsuit, filed by plaintiff Marcus Vaughn, the company stated it had investigated the “disappointing behavior involving a group of individuals who worked on or near Marcus Vaughn’s team” several months ago and had fired three of the individuals involved.

Adding further detail to the situation discussed in Vaughn’s lawsuit, Tesla referred to a number of “conflicting accusations and counter-accusations between several African-American and Hispanic individuals, alleging use of racial language, including the ‘n-word’ and ‘w-word,’ as well as the threat of violence towards one another.” The company added that it considered its actions a “fair and just response” to the information it had at the time and that it would carry out further action where required. Read the entire piece here…

The lawsuit is not the only problem Tesla Motors Inc (NASDAQ:TSLA) is dealing with. Analyst Toni Sacconaghi from Bernstein found potential shortcomings in Tesla’s Model 3s. The company has neither confirmed nor denied the developments. However, CEO Elon Musk during earnings call had stated that the company will not be able to fulfill its target of producing 5,000 Model 3s by December end. Ethan Baron in this article provides more details.

Analyst: Model 3 has ‘poor overall initial quality’

Bernstein analyst Toni Sacconaghi examined two Model 3s supplied by Tesla in Brooklyn, and went for a test drive. He did not give the car five stars.

“The analyst found a misalignment in the Model 3’s glass roof, body panel gaps, rubber trim issues around windows and misaligned seams in the interior ceiling of the car,” CNBC reported, based on a note Sacconaghi sent to clients Nov. 10.

Tesla did not respond to a request for comment.

Here’s how Sacconaghi described the car he was given for the test drive:

“Our inspection revealed widespread shortcomings in fit and finish,” he wrote. “Fit and finish on the two demo cars we saw — perhaps not surprisingly — was relatively poor.”

“Tesla representatives acknowledged some of the fit issues, but stated that they believed that Model 3 was much further ahead than where Model X and S had been at this point in production.” Read the entire article here…

Conclusion:

Its worked cut out for Tesla Motors Inc (NASDAQ:TSLA). Controversy is something which is not new. However, it would be interesting to see how the company overcomes critics once again.

Viraj Shah

Viraj Shah has completed M.Com (Finance) and is currently pursuing his CFP. He tracks US markets along with other global markets like India very closely. He is very passionate about stocks, real estate, and technology. He also believes that money can always be made in the market.
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