Musk tells Tesla employees to focus on cutting delivery costs

Tesla cars are displayed at a Manhattan showroom on April 4, 2019 in New York City.

Tesla cars are displayed at a Manhattan showroom on April 4, 2019 in New York City.
Photo: Spencer Platt (Getty Images)

Tesla CEO Elon Musk told all employees in an email not to “Insanely fast enemy To deliver cars, pointing out that although the company spend Big effort, rush and spending a lot of money don’t actually lead to more cars being saved.

In his email sent on Friday and Obtained by CNBCMusk has instead pushed workers to focus on “reducing the cost of deliveries” rather than spending big on expediting fees, overtime and just temporary contractors to ensure cars reach customers in the last quarter, contributing to sales goals.

Tesla’s car deliveries are the closest thing to the sales data the company releases, as its sales are global, and they don’t. Regional data dissemination. In the Third quarter This year, the company produced 237,823 cars and delivered 241,300 deliveries.

“What has happened historically is we run like crazy towards the end of the quarter to maximize deliveries, but then deliveries drop dramatically in the first few weeks of the next quarter,” Musk wrote, according to a transcript provided by CNBC. “In fact, given the six-month period, we haven’t been able to deliver any additional cars, but we’re going to spend a lot of money and work hard to speed up deliveries in the last two weeks of every quarter.”

Tesla’s CEO added that the company had a “huge wave of deliveries” made in the last few weeks of December because it hasn’t hit mass car production in Europe or Texas yet. For example, there are many cars that are transported by boat from China, where Tesla owns a giga factory in Shanghai Production capacity 450,000 Electric cars annually to Europe.

In the U.S., meanwhile, new cars are being delivered on trucks and trains from California to the East Coast. In both cases, these cars will arrive late in the quarter. Musk emphasized that this was the right time to “start reducing the size of the wave” and focus on obtaining a more steady and efficient pace of deliveries.

“The right principle is take the most efficient action, as though we were not publicly-traded and the notion of ‘end of quarter’ didn’t exist,” Musk wrote.

That’s easy to say when you own the Most Valuable Car Company in the world, despite Musk’s efforts to devalue the company’s stock. (Example: A tweet This is my past may be He said that “Tesla’s stock price is too high” which wiped out billions of the company’s market value).

While Musk’s email makes perfect business sense, Tesla customers who are anticipating deliveries over the next few weeks may not be too happy about it. Many Tesla customers have been waiting for their new cars for months and have seen expected delivery times change time and time again, CNBC reported. Some of these customers are forced to take out more money for car rental and passenger services In the meantime. Customers who have financed their new Teslas are also affected, as delays can affect their loan rates and insurance quotes.

In October, Tesla published its car The largest quarterly net profit in historyAnd valued at $1.62 billion. At that time, the company acknowledged the delay in delivery, which is Attributed to Global supply chain and logistical challenges. So far, 627,572 vehicles have been delivered this year.

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