Not all publicity is good for a brand and Tesla learnt this the hard way. The electric luxury maker faced a lot of troubles with its cars in the recent past. Its Model S is one of its most popular and highly acclaimed cars, but people began doubting the brand after a video was uploaded on YouTube last year, showing a Tesla Model S engulfed in flames. This was not the only video to surface and other images and videos showing other Model S cars in tragic incidents and in flames were circulating on the web for a long time causing a serious dip in the demand for Tesla cars and Tesla’s stock price.
Elon Musk admits to damage from videos
In the fourth quarter earnings call with Tesla’s investors, Elon Musk, the Chief Operating Officer of Tesla, admitted that the videos and images of Tesla’s Model S vehicles engulfed in flames hurt the company more than he would have liked and caused a serious drop in demand. Although no one was injured in the incidents involving Model S cars going up in flames, Tesla’s reputation took a serious hit.
Musk defended the safety of the Model S cars and even blamed the media for sensationalizing incidents when they occurred. The company also requested a federal safety review, results of which are still pending.
Social media to the rescue
Musk thanked social media platforms like Twitter for helping spread the truth and for allowing consumers to see past the media hysteria. He also credited social media for allowing consumers to know what was really going on and that the mainstream was making a mountain out of a molehill. He added that without social media and the internet, he was unsure whether the company would have been able to undo the damage and bounce back. In the fourth quarter, the company sold a record number of Model S cars (6,892 cars to be exact) and Tesla hopes to sell 35,000 of them this year.
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Source: The Verge
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