Far-fetched promises cast a shadow on 'visionary' Elon Musk

Elon Musk, American businessman and co-founder of Tesla Inc, has promised a lot. He has grand plans to redefine the way we travel, wants to colonise Mars and has a dream about the future of the mankind.

But that's what is hurting his image. Musk was once referred to as a visionary, but is now labelled by many as just a dreamer.

The flamboyant Tesla CEO is under fire on several fronts. Tesla employees and some internal documents claim that the company is planning to close a dozen solar facilities in nine US states. The company, however, has declined to comment on which sites it is planning to shut down.

The plan to downsize the solar business is basically the result of Tesla's plans to cut nine per cent of its workforce. The job cuts are intended to address excess staff and will affect almost 4,000 workers.

The operational closures raise new questions about the viability of Tesla's cash-strapped solar business. The company has missed several key benchmarks for its latest offering in the electric car segment, Model 3 sedan. This, in turn, has led to scepticism over whether the company can reach its goals.

A few months ago, Musk was in the doghouse with many Wall Street analysts after he abruptly cut off an earnings conference call because of "dry" and "bonehead" questions that dug into capital spending details.

The onus of this failure falls primarily on Musk. It is important to note that Musk, who is often referred to as a visionary, has been making a lot of promises that seem far-fetched - he is aiming to revolutionise transportation with the ultra-fast hyperloop, he has grand visions to carry people into space and he is planning to create underground tunnels to zip passengers and cars at speeds of up to 200 kilometers per hour.

Musk's plans look grand and promise a better future, but the groundwork doesn't seem to be solid enough for them to take off.

Founded in 2003 by a group of engineers drawn to electric cars, Tesla went public in 2010 and began delivering the Model S sedan in 2012.

However, the company's first two major vehicles both sell for around $75,000 or more, whereas the Model 3 starts at $35,000 and had been billed as the first electric car aimed at the middle market.

(With inputs from agencies)