Tesla's Ethical Crisis_ Balancing Innovation, Profit, and Responsibility
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1
Ethics Model Paper:
Tesla's Ethical Crisis: Balancing Innovation,
Profit, and Responsibility
Daniel Negrete-Gonzalez
MGT 16: Personal Ethics at Work
Professor Campbell
April 30, 2024
2
I.
Information
●
Just over a week ago, the newest release in Teslas electric vehicle line, the Cybertruck,
was recalled for a second time, due to a faulty pedal issue.
○
This ethics paper will focus on the many issues Tesla still has to this day.
○
Despite Tesla being an electric vehicle company, leaked documents reveal that the
alpha version of the car had very basic design flaws, noting delays and serious
struggle with powertrain, suspension, and other ‘basics’ [17].
○
In the
Tesla Owners Club
forum, multiple users complained about brake issues
with one even exclaiming how their truck stopped working 1 mile after its
delivery [18].
●
Despite the truck being severely delayed, the truck seems to be completely rushed — one
example of many promises by Elon Musk which did not come through.
●
Safety Issues regarding autopilot
-
Current CEO and former chairman, Elon Musk, has made a plethora of promises
to shareholders and customers — promising full self-driving capabilities later that
year or next, countless times since 2018,
-
In 2018, an Apple Employee died while using his phone while autopilot was
engaged. However, the NTSB “collision warning system did not provide an alert,
and its automatic emergency braking system did not activate”
-
Since then, Tesla implemented a cabin camera which monitors drivers [7].
However, despite cameras being implemented to discourage driver
disengagement, the NHTSA believes that not enough action by Tesla has
been taken to stop drivers from disengaging while in the driver's seat [11].
-
A study conducted by MIT found that autopilot leads to inattentiveness, stating
“drivers looked less on the road and focused more on non-driving related areas
compared to after the transition to manual driving”[10].
3
-
In 2022, the NHTSA found that on average, autopilot gave back control less than
a second before a crash occurred [1].
-
Leaked emails showed that in 2012 issues were raised about a design flaw that
could cause fire issues in the battery [bi]. Toyota ended its partnership after Tesla
refused to implement a design choice that would protect the battery from Debris
[15], which they ultimately did add after a NHTSA investigation after two
high-profile fires [5].
-
An investigation piece by Reuters in December 2023 revealed that Tesla had
rejected earlier customer claims for suspension and steering problems, citing
previous damage and/or driver abuse as the cause, while internally labeling the
same parts with persistent failures as defective [3].
●
In early 2023, the steering wheel of a brand-new Tesla fell off during driving, closely
reflecting a similar case from 2020 [14].
●
Steven Henkes, a former employee of Tesla, filed a lawsuit in November 2020, claiming
that he was fired by the firm for bringing up safety concerns over "unacceptable fire
risks" in the solar systems installations [8].
-
The solar company Tesla acquired for $2.6b, SolarCity, was bought from his
cousins even though Elon Musk knew that the company was on the brink of
collapsing [6].
●
In 2023, a Tesla owner filed a lawsuit in response to a Reuters story claiming that staff
members at Tesla were exchanging "highly invasive videos and images recorded by
customers' car cameras" with one another [2].
●
Due to battery ranges being up to 25% wrong, Tesla set up a special “diversion team” that
would cancel service appointments related to driving range issues [12].
●
Elon Musk caused a surge in the cryptocurrency Bitcoin after Musj announced that tesla
would accept bitcoin as a form of payment [13]. Although the decision was reverse
4
shortly after, Musk has used X, formally twitter, to manipulate Bitcoin and Dogecoin
prices (both being currencies he holds) [4].
II.
Detailed Analysis on Ethics
A.
Product Quality and Safety
All tesla cars have had major quality issues, some with paint or panel gaps, but
the Cybertrucks two recalls in just a few months raise concerns about Tesla's
commitment to ensuring the safety and quality of its vehicles. Despite the car
being released 2 years after promised, its lack of attention to detail indicates a
potential disregard for consumer safety, which can be seen as ethically wrong.
B.
Autopilot Safety:
Tesla's promises regarding full self-driving capabilities and the implementation of
autopilot features have raised questions about the safety and reliability of these
technologies. Incidents like the Apple employee's death and the findings of the
MIT study on driver inattentiveness suggest that Tesla may be overselling the
capabilities of its autopilot system, potentially putting lives at risk.
C.
Customer Service and Transparency:
The handling of customer complaints regarding brake issues, suspension, and
steering problems, as well as the alleged exchange of invasive videos and images
from customer car cameras, raise concerns about Tesla's commitment to customer
service and transparency. Rejecting claims for defects while labeling the same
parts as defective internally indicates potential ethical lapses in customer
relations.
D.
Employee Treatment and Safety Concerns:
The lawsuit filed by Steven Henkes alleging wrongful termination for raising
safety concerns highlights potential issues with how Tesla treats its employees. If
5
true, this could indicate a culture that discourages whistleblowing and prioritizes
profits over safety.
E.
Business Acquisitions and Financial Decisions:
The acquisition of SolarCity, despite knowing its financial difficulties, raises
questions about Tesla's decision-making process and its impact on stakeholders.
Additionally, the manipulation of cryptocurrency prices by Elon Musk raises
concerns about market manipulation and ethical behavior in the financial sector.
III.
Identifying the Stakeholders
A. Major Stakeholders
1.
Consumers
; Current and potential buyers of Tesla products are most at
stake, directly experiencing the possible safety issues that exist as a lack of
Tesla quality control.
2.
Shareholders
: Shareholders are affected by any type of news or
information that affects the shares price. Shareholders have an incentive
for share prices to increase, despite the reasons.
3.
Employees
: Employees are affected by workplace conditions, safety
policies, and employment practices. Employee morale and engagement
can impact Tesla's productivity and reputation. As noted before, Tesla is
not very responsive to employee complaints.
4.
Regulators/Government Agencies:
Regulators and government agencies
are major stakeholders who oversee Tesla's compliance with laws and
regulations. They are responsible for ensuring consumer safety,
environmental protection, and fair business practices. Tesla's operations
are subject to regulatory scrutiny and enforcement.
5.
Suppliers: Suppliers are affected by Tesla's purchasing practices, demand
for their products, and payment terms.
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