[Update] Tesla Network Outage is Worse than Previously Thought Leaving Owners Furious and Stocks Dropping by 10%: Here's the Probable Cause

Tesla was hit by a complete network outage, which began at around 11 a.m. EDT of September 23. This is not the first Tesla had system issues, but this seems had the widest impact so far affecting clients in the United States and parts of Europe.

Tesla drivers can only access the car through a physical key while those who rely on digital key using the mobile app were stranded. Meanwhile, Tesla deliveries were also halted as internal systems are also down.

[Update] Tesla Network Now Working after Suffering from Outage for Hours
[Update] Tesla Network Now Working after Suffering from Outage for Hours David von Diemar / Unsplash

According to outage monitoring website Down Detector, network issues are reported from major cities like New York City, Boston, San Francisco, and Chicago as well as other parts of the U.S. However, some clients from the U.K., Germany, Portugal, Switzerland, Netherlands, Russia, and even in United Arab Emirates also reported the outage.

Users reporting the outage were outraged by the system issue. One user said he just had his delivery cancelled. "Man I was supposed to snag my new m3 today! Cancelled! LAAAME. Time to invest in a working BCP plan Tesla," Kevin Taylor shared in the Down Detector website.

Tesla Network Now Working after Suffering from Outage for Hours
Tesla Network Now Working after Suffering from Outage for Hours Down Detector

Some sources familiar with the issue told TechCrunch that the outage may be "caused by an internal break of their application programming interface (or API)," although Tesla has not yet issued a comment about the network issue.

Twitter user Frank Lambert who owns three Tesla cars was the first to raise the issue about the outage. He said in a tweet: "Tesla is currently having a complete network outage. Internal systems are down according to sources. On the customer side, I can't connect to any of my cars and website is not working."

Lambert also said that he was unable to connect to the cars using the mobile app, which was echoed by other users chimed who were experiencing the same issue.

The Tesla mobile app features GPS Location for finding their vehicle, Range Status to check the battery charge, service schedule, and the digital key that allows keyless access to the vehicle.

Some Tesla owners who only rely on digital key were kept out of their vehicles for hours while those with the physical key were able to drive their vehicles. Meanwhile, Tesla's website also showed errors that left owners unable to monitor their systems.

Meanwhile, Lambert continuously give update on the outage issue. As Electrek reported, services were restored in some cars after about 35 minutes, then at 3:05 pm, app connection is mostly back up. Lambert noted that Tesla's internal systems are still down, "creating a 'nightmare' for sales, delivery, and service."

Tesla Battery Day 2020: A flop

It was a double whammy for Tesla as the outage occurred after the failed "Battery Day" event, which negatively translated into the market.

Instead of pulling the stocks up, dismayed investors dragged the company's market value by more than 10%, which means $50 billion lost in Tesla's market value just hours after the event.

While CEO Elon Musk introduced new technologies like their new tabless battery and production strategies to cut electric vehicle costs in the 2020 Annual Meeting and Battery Day event, it would take three years before the price drops to $25,000.

Tesla shares closed down 5.6% then the market opened on September 23 at 5.4%, but dropped 7.45% after 11.30 a.m., right after the outage.

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Written by CJ Robles

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