Home / Business / Tesla needs to catch up on record-quarter deliveries and focus on costs, Elon Musk says in a leaked email

Tesla needs to catch up on record-quarter deliveries and focus on costs, Elon Musk says in a leaked email

Elen Musk, CEO of Tesla, said in a new email to employees "Demand is strong this quarter, but they have a lot of catching up to do to reach a record quarter."

They focus on delivery time and shipping costs.

Last week, we reported that Musk had sent an e-mail to employees saying Tesla was within range of a new record quarter for deliveries, but they needed to ramp up production.

The CEO said they already had more In this quarter, more than 50,000 net new orders were received.

Electrek received another email from Musk to co-workers, in which he reiterated that demand was high, but also said they had "much to catch up with" vehicle deliveries ": [1

9659006] "Although our demand is strong, we need to catch up on a lot of vehicle deliveries to achieve a successful quarter. "

Musk announced that he will be phoning Tesla's delivery teams every two days around the world to learn" what's needed to speed up our delivery rate. "

Last year, we reported that Tesla set up a new supply organization to take over responsibility for deliveries as volumes grow rapidly. [19659002] At the time, Tesla hired Kate Pearson, former vice president of strategy, operations and digital acceleration at Wal-Mart, to lead the new delivery business.

It did not take long. Sources familiar with the matter told Electrek that Tesla had reduced delivery to sales teams and Pearson is no longer with Tesla.

In today's new email, Musk said they need to focus on costs:

"We also need to take into account the total cost of handing over a car from our factory to the customer. In the last quarter, there were many forwarding charges and routing inefficiencies, which resulted in higher than expected delivery costs. This makes it much harder to break even. "

The CEO states that a record quarter is still within reach when executed:

" According to my earlier email, Q2 will be an all-time, if we do it well time record for Tesla vehicle deliveries and a great victory !! "

As previously reported, Tesla delivered a record 90,700 cars in Q4 2018.

Electrek's Take

It looks like people could finally stop asking about the quarrel. Tesla seems to have secured it for the quarter, which is impressive.

But deliveries still seem to be an important bottleneck.

Tesla does it virtually every quarter. At the end of the quarter, they are building a large backlog of supplies that they must complete in order to capture revenue from the shipment within the quarter.

Elon talked about solving this problem years ago is still happening today.

I think it's up to Tesla's direct selling business model. Unlike other automakers that sell most of their cars through franchise dealers, Tesla owns the entire sales structure and is responsible for the car to the customer.

You must find a way to stabilize sales and delivery the quarter and avoid a rush of supplies at the end of each quarter.

Any ideas? Let us know in the comment section below.

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