This means the half-million preorders for the Model 3 could go unfulfilled for several years, putting many $1,000 refundable deposits for each new car in doubt. That threat is real, but the markets are unconcerned. Tesla stock is still up 65% in 2017, and the brand has lost none of its captivating aura.
But a carmaker that has been around for as long as Tesla should be good at something that Tesla clearly isn’t: building vehicles.
So why is Tesla struggling to build the Model 3 on its own admittedly ambitious schedule?
...
Tesla’s brand equity is probably its most valuable asset. Short-sellers aren’t fans, and plenty of analysts argue that Musk is all hat and no cattle, but everybody else loves the company.
And Tesla knows it. Having built up massive positive brand equity over the years, Tesla has the advantage of “spending” it from time to time by, frankly, deceiving the public.
Within this pact, however, is shared understanding: Yes, we aren’t going to make our goals — but we also aren’t going to lose focus on the big picture, which isn’t to sell more cars, but to save the planet.
Unlike most other companies — even professedly do-gooding outfits in Silicon Valley — Tesla has a mission, one that's difficult to resist or criticize. Importantly, Tesla has earned this trust by delivering a genuine payoff to anybody willing to go along for the ride.
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