More fallout for Tesla following possible sabotage

FREMONT, Calif. (KGO) -- Could automaker Tesla be in the midst of a crisis? That what some industry insiders are saying following the latest fallout from the company.

Tesla CEO Elon Musk and his electric car company can't seem to catch a break.

Reports surfaced this week of a possible sabotage against Tesla from a disgruntled employee.

VIDEO: Tesla bursts into flames in Los Angeles

A Tesla spokesperson declined to comment but an internal email obtained by electric car website "Electrik" details the person involved was upset for not getting a promotion.

Last week in Los Angeles, one of its electric cars caught fire after a battery pack exploded. The company is investigating the incident it describes as "an extraordinarily unusual occurrence."

Then there's the ongoing criticism over the company's autopilot issues.

"It does seem like a PR nightmare to many organizations if they face this many issues," said Tammy Madsen, professor of strategic management at Santa Clara University.

She believes the latest fallout raises a host of concerns. "It suggests something about the culture of the company and it's not being set up that's productive to help move the organization forward."

RELATED: ABC7 investigates deadly Tesla crash on Hwy 101

The company is moving forward to meet a manufacturing goal of 5,000 of its Model 3 cars per week by the end of the June. This in the midst of layoffs - more than 500 job cuts announced in the Bay Area.

"To me, what's happening at the factory that's going to make or break this company," said automotive insider Edward Niedermeyer. He's in the process of writing a book on Tesla and says the company's performance at the end of the business quarter will speak volumes.

"If they don' take that goal and continue to lose money, they're in real deep trouble."

Through it all, Elon Musk continues to tweet -- confident that Tesla will reach production goals and be a long-term success.

For more stories, photos, and video on Tesla and Elon Musk, visit this page.
Copyright © 2022 KGO-TV. All Rights Reserved.