Security Vulnerability Exploitation and Tesla

This paper discusses the security vulnerabilities and cyber attacks faced by Tesla, their impact on the company's financial performance and reputation, and the measures taken to address these issues.

Running head: SECURITY VULNERABILITY EXPLOITATION AND TESLA
SECURITY VULNERABILITY EXPLOITATION AND TESLA
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SECURITY VULNERABILITY EXPLOITATION AND TESLA
Introduction
More than 60% of business leaders in companies comprising of around 500
employees disregard the propensity of encountering cyber-attack. In the view of Duchamp,
Bayram and Korhani (2016), cyber security is not a precedent priority for business leaders’
focus and initiatives irrespective of the fact that around 67% of businesses have faced cyber
threats in the past one year. As per reports, recent report of 500 US business leaders engaged
in small and medium enterprise revealed that only 12% interpret the reality implying that an
attack is highly probable, irrespective of the size and dimension of the company (Andriole,
2018). The following paper will evaluate Tesla’s experienced types of security breaches in
2016, its financial, non-financial outcomes and the way these cyber-attacks have hampered
the reputation of the organization. In addition to this, the paper will offer insights of the way
in which Tesla restore confidence from its client and successfully address issues of cyber-
attack.
Discussion
Tesla’s Recent and Former Issues with Security Breaches
Tesla Motors established by Elon Musk is identified as the most exhilarating self-
regulating development in several decades with a marquee narration of U.S technological
dynamism and innovation. As per reports, Tesla’s luxury electric cars have created
responsiveness in the automobile industry, thus making Tesla as one of the best car which has
been ever tested (Holland et al., 2017). However, irrespective of the acclamations, Tesla has
been encountering enormous challenges and issues in entering into automotive sector which
has been dominated since several years by internal combustion engines. According to Jellid
and Mazri (2018), not only it is essential for Tesla to build cars which customers desire to

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drive in cost-efficient manner, but Tesla further should build the battery-swapping with
charging infrastructure which produces charging in efficient way and consistent as pumping
gas. Irrespective of these factors, Tesla in recent and previous times has encountered cyber-
attacks in connected cars.
Tesla hacked by Chinese hackers from Keen Security Labs
Group of Chinese security researchers belonging to Keen Security Labs hacked a
Tesla Model X for the second time in 2019. As per reports, the Chinese hackers misled the
Tesla’s Autopilot into abruptly switching lanes. Moreover, while evaluating another
experiment it has been found that Tesla’s automatic windshield wipers which have been
motorized by cameras and the Autopilot’s computer vision software by putting the television
screen with images of water in front of the motor, thus causing the wipers to convolute in
action. According to Nie, Liu and Du (2017), this cyber-attack has been highly critical for the
company which enabled it to regulate the vehicle via Wi-Fi and cellular connection. The
vulnerability confronted the CAN bus that regulates several vehicle system in the car. As per
reports, it requires the car to be linked to a wicked Wi-Fi hotspot to take control and function
via the in-car web browser.
Cyber Attack on Tesla Inc. Cloud Systems
The cloud system of Tesla Inc. that has been presented on Amazon Web Services
(AWS) has been severely exploited by hackers in order to source crypto currency in recent
times. As per reports, the activity of cyber-attack has been performed through exposed
Kubernetes console of automobile manufacturer Tesla. As per Dragoni, Giaretta and Mazzara
(2016), Kubernetes System is identified as open source software developed by Google and
implemented by various corporate firms across the world. But in drawing relevance to Tesla
cyber-attack, an indiscreet support exposed access credentials to hackers permitting to mine

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crypto-currency on the AWS environment. Even though, details regarding the mined
currency along with the amount obtained in dollars in inaccessible have confirmed that crypto
jacking activity on Tesla cloud systems has taken place in 2019 (Duchamp, Bayram &
Korhani, 2016).
Tesla deteriorated Financial Performance due to Cyber attacks
Tesla has faced severe bankruptcy despite of its initiatives of raising money by
offering major discount of Easter Eggs. As per reports, Tesla has produced around 9760
Model 3 motors which indicated substantial development during 2017. However, Tesla failed
to achieve the agenda of producing 2500 Model 3s, thus reaching only 2020 by end of 2017.
Moreover, Andriole (2018) has noted that Tesla with other auto manufacturers furnish their
vehicles with innovative anti-spoofing technologies which includes Regulus which has been
currently collaborated with the industry to develop–to avert attack circumstances that might
place drivers in hazard and risks.
Tesla Growth affects cyber security
The rapid technological progress includes the processing of Zettabytes of digital
estimations and production of Tesla requires be organizing and activating in real-time. In the
view of Nie, Liu and Du (2017), staying well-informed and ideally progressive of the cyber-
security domain in the landscape of rapid pace of digitisation is identified as one of the
critical challenges in current times. Automobile companies like Tesla is encountering cyber-
threat and consequentially shown early obligation to hardening vehicles against cyber
sabotage ranging loss of data to safety-critical situations. Reports have revealed that by 2020,
around 25% of all cars transported will upkeep diverse levels of autonomy and that
percentage is likely to rise up to 44% in the next 5 years (Scarfò, 2018).

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Tesla’s Cyber Attack Impact on its reputation
Cyber-attack has created a negative phase full of regulatory fights and security
breaches for Tesla. This type of security breach has resulted in a major decline of Tesla’s
sales growth and reputation in front of its customers. As per reports, Tesla has dropped 39
spots in the Axios and Harris poll of brand image which might land to almost 42 in 2020.
According to Duchamp, Bayram and Korhani (2016), in comparison to other automakers,
Tesla will lag behind Honda and Toyota, but will be ahead of Ford and Hyundai.
Conclusion
Therefore, it can be concluded that Tesla CEO, Elon Musk to restore its lost brand
reputation has modified its communication strategy to effectively alleviate the reputational
jeopardies occurred due to cyber-attacks. In Tesla CEO 2018 article, the Mission of Tesla
focused on accelerating the rise of sustainable transport and further supports new
technological expertise which must respond to the highest standards of investigation.
Additionally, Tesla has deployed an ‘over-the-air’ update to its Model S owners in order to
address the device exposures of cyber-attacks. Furthermore, to re-gain its brand image,
Tesla’s security team functions closely with the security research community in order to
guarantee its continuous protection against exposures by constantly stress-testing and
updating its protections.

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