Tesla To Face Raps Over Model 3 Accidents, Endangers Company Bottomline

Tesla CEO Elon Musk has recently received a subpoena from the U.S. National Highway Traffic Safety Administration (NHTSA) regarding the accidents caused by the company’s cars. Apparently, the Model 3 has repeatedly been in many car accidents as of late. On the company’s end, the Model 3 is the company’s bread and butter in the recent financial quarter.

The NHTSA is planning to take Musk to court to address the problems with Model 3, according to a report from Bloomberg. The government agency’s lawyers are looking at the company’s claim last October 2018 that the Model 3 is the least accident prone car that the NHTSA has ever tested. Tesla has advertised the vehicle as having a safety score of 5.4 stars while the government agency confirmed that the car didn’t even go over 5 stars.

The reports about the Model 3 crashing say otherwise, and the lawyers are asking the Federal Trade Commission to look into Tesla’s case if they’re misleading their customers. Independent auto-safety consultant Allan Kam said that the subpoena against Tesla would spur the company to take notice and less likely to set aside the Model 3 issues.

On Tesla’s end, facing a subpoena with the Model 3 is not a great time for them. The company is doing well with the Model 3 electric car as seen in its astronomical growth compared to competition in the company’s second financial quarter. The subpoena could greatly affect the company’s bottomline if the electric car line gets discontinued due to the cease and desist that the NHTSA is planning to do.

The Model 3 is also Tesla’s main product as many customers want this vehicle. Compared to the Model S and Model X, the Model 3’s more affordable price and great specs make it popular for people who want to own a budget-friendly electric vehicle. More than just having an electric vehicle, Tesla also has the most convenient recharging system because Supercharger stations are found throughout the U.S.

Other than the Model 3, the Model Y is also expected to be an affordable electric vehicle. If the Model 3 gets discontinued, the company still has another budget-friendly vehicle for its customers. The Model Y is scheduled to have its first batch released by the end of 2019.