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Since November 6, Tesla Inc (NASDAQ: TSLA) has been delivering Model 3 and Design Y vehicles with defective USB ports from its Shanghai Gigafactory, due to the semiconductor shortage. As ports are just offered for charging and not for information transfer, the automobile giant might deal with a consumer rights reaction.
Q3 2021 hedge fund letters, conferences and more
Defective Ports
According to the South China Morning Post, the USB ports in the front-row central consoles of the Model 3 sedans and Model Y can just be utilized for charging, and not for data transfer. The concern is because of the chip scarcity affecting the automobile market.
David Zhang, a researcher for the automobile industry at the North China University of Technology, says “The impact might be big for Tesla, as consumers who consider the problem an essential concern may change to other brand names, and it runs the risk of the offense of consumer rights by not giving advance notice to the buyers.”
Clients in the U.S. started sending out questions relating to the concern, as they were provided the associated models with faulty USB ports, and often with actual gaping holes rather.
Gary Ng, senior economic expert for Asia Pacific at French financial investment bank Natixis, said, “The automotive chip shortage should start reducing in the 2nd half of 2021, but the pressure will persist throughout 2022.”
Musk Sold More Shares
According to a filing from Friday, Elon Musk ended the week by selling a more $1.2 billion in Tesla shares at an average price of $1,030 a share. As reported by CNN, “Musk worked out the first block of 2.2 million of those soon-to-expire alternatives on Monday, and then offered 934 million shares in order to pay the taxes on that workout.”
” It brings his sales for the week to a total of 6.4 million shares, for a grand total of $6.9 billion,” the news outlet said.
The sale became the very first for the automobile billionaire given that 2016, and in spite of his Twitter survey stunt, the string of operations recently was intended to prepare himself for an upcoming tax expense “that will be activated by his requirement to work out 22.9 million alternatives to buy shares before next August.”
Reuters reports that Tesla shares were down 2.7% at $1,005.42 in early New York trading, after losing around $187 billion in market value over the previous week.
Tesla becomes part of the Entrepreneur Index, which tracks 60 of the largest publicly traded companies handled by their founders or their creators families.
Upgraded on Nov 15, 2021, 9:54 am
