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Recently, Tesla has hinted at some face-lifts for the Model 3 and the Model Y. Sam Fiorani, an automotive analyst for AutoForecast Solutions, described them as overdue. As Tesla tries to move more and more cars, he argued, refreshing their designs will become a critical piece of the business.
As if that wasn't enough, Tesla's losing its grip on the novelty of the way it sells cars. The company decided from the start to eschew the dealership model and sell its cars directly to customers, giving Tesla more control over pricing and therefore an edge over its legacy competitors on profit per vehicle. But competitors are finding a way to keep their dealers — long protected by an intricate web of franchise laws in the US — and beat Tesla at its own game.
One of the clearest signs that a carmaker is facing serious issues is oversupply. Cars can languish on lots for plenty of reasons that may sound familiar: Customers are underwhelmed by designs, other automakers have rolled out some hot new tech, or the brand's reputation has been damaged. Tesla — which once had toits assembly plant in Fremont, California, in a chaotic attempt to meet customers' overwhelming demand — long seemed immune to this problem.
"We're seeing Tesla fall into these traps all the automakers go down eventually, and it all really started with the rental sales," Ivan Drury, an automotive analyst for the car-shopping site Edmunds, said in an interview with InsiderAs Teslas started stacking up and the company's edge started to slip, Musk lost focus. Last spring, the billionaire became increasingly obsessed with a takeover of Twitter.
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