Not to ‘Sprint Like Crazy’ for Car Deliveries, Elon Musk Tells Tesla Employees

by -
On April 4, 2019, Tesla cars were on exhibit in a Manhattan dealership. Photo: Spencer Platt (Getty Images) – He said that haste and extravagant expenditures have no effect on Tesla’s ability to produce more vehicles in the long term. Email from Tesla CEO Elon Musk to all staff urged them not to “sprint like crazy” to deliver vehicles, saying that even while the firm exerts tremendous effort, hurrying and spending large sums of money really does not result in more automobiles.

Tesla CEO Elon Musk urged staff to concentrate on “minimizing the cost of delivery” instead of squandering money on expedite fees, overtime, and temporary contractors in order to meet sales objectives in the fourth quarter of the year, according to an email acquired by CNBC on Friday.

For the most part, there is no geographical data released by Tesla, which makes car deliveries the closest thing to sales statistics. There were 237,823 automobiles manufactured and 241,300 cars delivered in the third quarter of this year by the corporation.

According to a translation supplied by CNBC, Musk wrote: “What has occurred historically is that we race like crazy towards the end of quarter to maximize delivery, then deliveries decrease substantially in the first few weeks of the following quarter.” According to a six-month timeframe, we won’t have delivered any more automobiles, but we’ll have spent a lot of money and exhausted ourselves in the last two weeks of each quarter in order to speed up deliveries.

There will be a “huge surge of deliveries” for Tesla in the final few weeks of December since the business has not yet established large volume manufacture of automobiles in Europe or Texas. When it comes to transporting automobiles from China, where Tesla’s Gigafactory in Shanghai produces 450,000 electric vehicles each year, to Europe, a lot of boats are used.

Meanwhile, in the U.S., new automobiles are being shipped from California to the East Coast by truck and rail. Both of these automobiles are expected to arrive in the third quarter. At this point, he said, “start lowering the magnitude of the wave” and concentrate on a more consistent and efficient delivery speed.

It’s important to operate as if the stock market and the concept of the “end of quarter” do not exist, according to Musk.

You may say that if you own the most valuable automotive business in the world, despite the attempts of CEO Elon Musk to depress the firm’s share price. For example, he tweeted in May that “Tesla stock price is too expensive imho,” which resulted in billions of dollars in losses for the firm.

Even if Musk’s communication makes excellent commercial sense, Tesla customers who are awaiting their cars in the next several weeks may not be pleased with it According to CNBC, many Tesla buyers have been waiting months for their new vehicles and have had their estimated delivery dates repeatedly revised. In the meanwhile, some of these consumers are forking out more cash to cover the cost of rental vehicles and ride-sharing services. As a result of the delays, customers who financed their new Teslas are also being affected.

As of October, Tesla’s net profits were $1.62 billion, making it the company’s most profitable quarter ever. While acknowledging the delays at that time, the corporation blamed them on global supply chain and logistical issues. This year, it has sold 627,572 vehicles.