th CASES Case 2-1 Tesla: Improving Quality? Tala Homepage wwwisla.com vehicle, the Model 3 (sedan), supported Telling Tesla, the innovative American manufacturer of electric also offering more affordable vehicles to the can, continues to expand its vehicle offerings and produc- with a price point between $35,000 and Map tion while trying to improve its quality. Founded in 2003, the meet lower price points. Tesla reduced its fog company was recently recognized as the best seller globally by over 3,000 employees. At the same, time deng of plug-in all-electric passenger cars. Each Tesla vehicle is the Model 3. equipped with thousands of lithium-ion battery cells located However, Tesla faces multiple imporam under the floor of the vehicle. Multiple electric motors pro- lenges. For example, many customers of the yo vide rapid acceleration. Initial offerings such as the Models S complained about poor quality with the fit and (sedan) and Model X (a cross-over SUV) targeted affluent cus- vehicles. Gaps between body panels have been will tamers who were willing to pay high prices, typically from tent to inspection at a glance, Such gaps can age $74,500 to $94,000 for non-luxury models. The third generation noise or vibrations while driving, Other customCase 2-1 Tesla: Improving Quality? (Continued) broken interior parts upon delivery. Interior vehicle controls managed historically by knobs and controls are performed instead through a large touchscreen. However, multiple cus- tomers complained about malfunctions in the critical touch- screen, requiring either a reboot or a replacement; others share concerns about the distracting nature of using the touchscreen for interior controls. Some touchscreen malfunctions have been reported to cause charging problems or other random issues like music playing loudly on its own. Some customers have also complained about difficulty in getting service and repairs for these and other quality problems. Additionally, there are limi- tations on how smartphones can integrate with the vehicle. These and other quality challenges will require increased attention to detail and quality at Tesla as they seek to expand their offerings into semi-trailer trucks, full-sized SUVs, and more affordable models for the masses in the future.n 2. What factors do you think have contributed to both the Successes and challenges faced by Tesla in delivering con- sistently high-quality vehicles? How do those factors affect O or customer's perceptions of quality at Tesla? i- 3. If you were responsible for leading quality improvements at Tesla, what principles and approaches would you take to be successful? What specific actions would you take? What actions would you avoid