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June 16, 2020 01:33 PM

Tesla struggling with Model Y quality issues, report says

Michael Martinez
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    Tesla Inc. is delivering Model Y crossovers to customers with "significant defects", including loose seat belts and back seats that are not attached to the base, according to a report by the blog Electrek.

    The issues have prompted some buyers to refuse delivery of their vehicles, the report said, at a time when Tesla is attempting to boost numbers with an end-of-quarter push. The automaker is attempting to jump-start operations after its Fremont, Calif., plant was idled for weeks because of the coronavirus pandemic.

    The blog cited an email from CEO Elon Musk to staff last week acknowledging some issues with general assembly of the vehicles and saying it was "extremely important" to ramp up production and "minimize rectification needs." Musk told employees he planned to walk the line weekly to troubleshoot production snafus.

    Electrek cited a Tesla owner in Maryland who attempted to pick up a Model Y last week but refused delivery because of several issues, including "paint and trim problems, indentations in the seats and a loose seat belt," as well as an unattached back seat.

    While most automakers experience some issues with early builds of new models, the problems are especially noteworthy for Tesla and Musk, who famously went through "production hell" ramping up the Model 3 sedan.

    The Model Y is a key product for Tesla, which Musk expects to eventually outsell all of Tesla's other models combined. The company surprised investors this year by beginning deliveries of the vehicle early, leading to a surge in its share price, before operations were halted by the virus.

    A Tesla spokesperson did not immediately respond to a request for comment.

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