DUBLIN — Tesla is very good at some things. For example, it is good at identifying added car features that people love. It's good at marketing. It's good at making cars that are desirable. It's also good at stretching the life of batteries in a market-leading way. But it has some serious weaknesses. Foremost among them are its twin Achilles' heels: Tesla is not (yet) good at mass production and distribution, and Tesla tends to over-promise and under-deliver. These problems are related. The pattern looks like this: Tesla CEO Elon Musk optimistically promises to produce or sell a certain, high number of vehicles. Then, reports emerge of production and delivery problems. Logistical issues stack up. The target is missed, but a new and even more ambitious target is promised for the next quarter. So far, shareholders have had almost endless patience with the company's production and logistics problems and missed targets (indeed, the ambitious targets seem to be crucial in maintaining much-needed support for the share price). Tesla is an ambitious undertaking, and growing pains are not unexpected as it tries to switch from a luxury brand to a mainstream auto manufacturer. But this pattern highlights a fundamental weakness in the company's ability to plan. Tesla ended the year at around $350 a share. It's now trading at around $290. To stave off a further slide in the share price, Tesla must learn to operate smoothly and transparently. Let's hope it does. – Felicity Duncan

Tesla's first-quarter deliveries plummet

By Tim Higgins

Tesla Inc. said new-vehicle deliveries in the first quarter fell 31% from the previous three months as the electric-car maker struggled to ship its Model 3 compact car to customers in Europe and China for the first time.

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