Boxabl’s Struggle with Broken Promises and Operational Missteps

Boxabl, a startup known for its prefabricated tiny homes, has found itself in the midst of substantial criticism for some time. Despite its lofty aspirations of revolutionizing the housing market, the company has so far been marred by a litany of issues, including questionable spend management, slow production, and customer dissatisfaction that has thus far been unanswered.

In March 2023, Business Insider released an exposé titled “Tiny Homes, Big Problems,” raising serious concerns about the company’s financial practices and transparency. Reporters Daniel Geiger and Alex Nicoll revealed that the firm was hemorrhaging money, citing an example where Boxabl spent $15,750,000 to construct an order for which it only received $7,800,000. This leaves a gaping question over Boxabl’s proclaimed goal of offering low-cost housing at scale, the mission so many people supported in the first place.

Adding to the governance issues, the publication spotlighted a curious arrangement where Paolo Tiramani’s romantic partner headed the company’s accounting department. It also highlighted the eyebrow-raising salaries of the executives, notably higher than the industry average.

Moreover, despite having a hefty waiting list of 160,000 orders, Boxabl was only able to produce a meager 400 homes during its first operational year. As months and years roll by with no Casitas – Boxabl’s signature offering – in sight, customers have been canceling orders, with many asking for refunds due to the unacceptable delays.

The startup has managed to secure over $168 million in funding through equity crowdfunding and is ambitiously planning to raise an additional $1 billion. This funding, they claim, will be used to build the “Boxzilla Factory,” hailed as the future largest and most advanced housing factory in the world, capable of producing a house every minute. However, this lofty ambition is still in the planning stages, with no announced timeline or location for the construction of the factory.

Moreover, despite its struggle to deliver on existing orders, Boxabl continues to aggressively solicit new investors, further stoking suspicions about its financial stability and credibility. Some people have been barraged by multiple solicitations from the firm over the years, with little evidence of progress or delivery.

To make matters worse, the company’s product quality has been under scrutiny. Reports indicate that the design of Boxabl’s Casitas includes a negative lap at the base, posing a risk of water damage. While the company relies on caulking to seal the gap, industry experts suggest this may not be sufficient to prevent leaks or moisture problems.

All these issues combined paint a rather grim picture of a company that burst onto the scene with grand plans to revolutionize affordable housing. Instead, Boxabl’s journey seems littered with undelivered promises, questionable financial decisions, and seemingly insurmountable production issues. It remains to be seen whether the firm can turn things around, fulfill its backlog of orders, and restore its tarnished reputation, but for now, the outlook appears dim for the ambitious startup.