Tesla wants to reduce the cost of vehicle delivery
Tesla wants to reduce the cost of vehicle delivery

In a recent report, Tesla CEO Elon Musk urged company employees not to speed up order delivery at the end of the quarter, but focus on cutting costs.

In a November 26 note, Musk wrote that he didn't want the company to spend a lot of money on emergency expenses, overtime, and temporary workers until the car arrived in the fourth quarter.

“What happened in the story is we try to maximize deliveries,” Musk said. But then deliveries fell sharply in the first few weeks of the following quarter. We have not been able to deliver any other vehicles within six months. But we spend a lot of money during the last two weeks of every quarter and work hard to speed up delivery.

Although global supply chain problems and chip shortages hurt sales of other automakers like General Motors and Ford, Tesla managed to increase global deliveries of more than 241,000 vehicles in the last quarter and ship them just a month later. .

The company has not yet announced a clear delivery target for 2021. However, the overall goal is to increase shipments by about 50% each year.

The company delivered 500,000 vehicles in 2020 and is expected to have delivered 627,350 vehicles in the first three quarters of 2021. In this case, Tesla doesn't seem to need to accelerate its goals.

That doesn't mean Tesla hasn't had any delivery issues this year. In August, some customers' cars were delayed for weeks or months due to parts shortages and manufacturing issues at the Fremont plant.

Also this month, there are reports that shipped cars lack features such as USB ports, apparently due to a global shortage of chips.

Tesla increases deliveries at the end of every quarter

This may not be the first time Musk has asked employees to focus on costs rather than delivery goals. But this practice continues within the company.

This will put significant pressure at the end of the quarter, increase costs and lead to customers rushing to pick up the car, she added.

In his latest report, Musk said the company expects a marked uptick in shipments in late December, with shipments from California and China arriving on the East Coast of the United States and Europe, respectively. However, the CEO hopes to reduce the size of these waves in the future to support more consistent and efficient delivery speeds.

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