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15 controversies that have plagued Tesla, from Elon Musk's tweets to allegations of a toxic workplace

Elon Musk
Elon Musk

Tesla CEO Elon Musk.Brendan McDermid/Reuters

  • Tesla and its CEO, Elon Musk, can't seem to avoid controversy.

  • From its Autopilot software to allegations of racism at its California factory, the electric-car company has faced questions about seemingly every aspect of its business.

  • Tesla has missed deadlines for several vehicle launches. 

Tesla is one of the most divisive companies on Wall Street.

While it's earned a passionate fanbase and a sky-high stock price, the electric-car maker and its CEO, Elon Musk, can't seem to avoid controversy.

From Musk's unfiltered tweeting to concerns about a toxic culture at its California factory, the company has faced questions about seemingly every aspect of its business. That may explain its perennially volatile stock price.

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These are 15 controversies that Tesla has faced in recent years.

Have you worked for Tesla? Do you have a story to share? Contact this reporter at tlevin@insider.com or tlevin@protonmail.com

A tweet about taking Tesla private

elon musk
Lucy Nicholson / Reuters

Musk and the Securities and Exchange Commission (SEC) have been at odds for years.

The agency sued Musk in September 2018 after he tweeted that he had secured the funding necessary to take Tesla private at $420 per share, alleging that Musk had misled investors about the likelihood of a go-private deal.

A few days after the lawsuit was filed, the parties settled.

Musk didn't admit or deny the allegations in the agency's lawsuit against him but had to step down as the chairman of Tesla's board of directors for three years. Musk and the company each had to pay a $20 million fine, and Tesla lawyers are required to vet any of Musk's social media posts that could be relevant to Tesla shareholders.

In the years since, the SEC has accused Musk of not following the agreement after various tweets. Musk is trying to get out of it.

 

Autopilot crashes

tesla model x crash
KTVU via Associated Press

Multiple drivers have been killed while using Autopilot, Tesla's advanced driver-assistance system. The fatal accidents have raised questions about Autopilot's capabilities and how intently drivers pay attention to the road when using the feature.

When switched on, Autopilot keeps a Tesla centered in its lane and maintains a set speed while keeping distance from the car ahead. It isn't autonomous, and Tesla says drivers need to keep their hands on the steering wheel and pay attention, but owners have been known to abuse the system.

More advanced versions of the software can navigate highway interchanges and automatically change lanes.

NHTSA is currently investigating incidents in which Teslas using Autopilot features crashed into stopped emergency vehicles.

Tesla maintains that vehicles with Autopilot engaged have lower accident rates than the average. But Tesla's data should be taken with a grain of salt.

Vehicle fires

A Tesla Model S Plaid on fire
Tesla Model S Plaid fire.Geragos & Geragos

Vehicle fires have become a point of controversy for Tesla because of incidents that have occurred both after collisions and without any known impact.

There's no hard evidence that electric vehicles are more likely to catch fire than gas-powered ones, and a 2017 study from NHTSA found that the fire risks were comparable to or lower than traditional vehicles.

Musk has said the company's vehicles are less likely to catch fire than gas-powered ones.

But EV fires tend to be severe and difficult to put out. Once a vehicle's battery pack starts to overheat — from crash damage or a defect — fires can be challenging for first responders to contain. In June, a Tesla sitting in a junkyard in California ignited, requiring 4,500 gallons of water to put it out.

 

Drivers using Autopilot irresponsibly

sleeping Tesla driver
Twitter/SethWageWar

Numerous of drivers have been filmed using Autopilot without sitting in the driver's seat or while sleeping.

Consumer Reports confirmed last year that it's possible to drive down the road using Autopilot without sitting in the driver's seat or holding the steering wheel.

Musk's aggressive promises for self-driving tech

elon musk
Patrick Fallon / Reuters

In 2016, Musk said autonomous-driving technology would likely arrive in less than two years. Since then, Tesla has passed multiple deadlines set by Musk to send a self-driving vehicle across the US.

Musk has long promised that Tesla owners would soon be able to earn passive income by deploying their cars as autonomous robotaxis, but that vision appears a long way out.

 

Tesla released a prototype of its Full Self-Driving software to public streets

A black Tesla Model Y electric vehicle under a bright light in a showroom
A Tesla Model Y SUV.Joe Raedle/Getty Images

In October 2020, Tesla released a prototype version of its so-called Full Self-Driving software for a limited number of owners to test on public streets. Today, more than 100,000 Tesla owners have the beta software.

Some safety advocates oppose the move, arguing that unleashing the experimental technology poses an unreasonable risk to other drivers, bicyclists, and pedestrians.

"They're using consumers, bystanders, other passengers, pedestrians, and bicyclists as lab rats for an experiment for which none of these people signed up," Jason Levine, executive director of the Center for Auto Safety, a consumer advocacy group, told Insider.

Indeed, since the Full Self-Driving Beta went out to customers, dozens upon dozens of video clips have popped up online of the system driving dangerously or unpredictably. It has forced drivers into oncoming traffic, nearly crashed into concrete pillars, and had close calls with pedestrians.

Workplace safety concerns

tesla fremont factory
Tesla

Injury statistics and reports from media outlets have raised questions about worker safety at Tesla's factories, though concerns about workplace safety are not unique to Tesla in the auto industry.

Bloomberg reported in March 2019 that workers at Tesla's auto plant in Fremont, California, spent twice as many days away from their jobs due to work-related injuries and illnesses, after adjusting for workforce growth, in 2018 than in 2017, citing a report Tesla filed with the Occupational Safety and Health Administration (OSHA).