Elon Musk urges Tesla employees to reduce cost of vehicle deliveries

Elon Musk urges Tesla employees to reduce cost of vehicle deliveries

Elon Musk, Climate

11/28/2021 2:09:00 AM

Elon Musk urges Tesla employees to reduce cost of vehicle deliveries

Rather than rushing orders out last-minute to hit end of quarter sales goals, Tesla CEO Elon Musk wants employees to focus on slashing cost of deliveries.

, leaving them paying out of pocket for rentals and ride-hailing apps, and needing to re-apply for loans due to slipped deadlines.Tesla is not alone in leaving customers waiting longer than they had hoped for their new, fully electric cars. Last week, for example, newly public competitor

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notified people who had reserved their R1S, a sport utility vehicle, of delivery delays.Still, sales have grown this year for Tesla seemingly unbowed by unpredictable delivery dates.Vehicle deliveries, which are the closest approximation to sales reported by Elon Musk's electric vehicle and renewable energy business, amounted to about 500,000 total in 2020. During the first three quarters of 2021, Tesla had already reported deliveries of

627,350 vehicles.Since the start of 2021, the company has not provided a clear target for 2021 vehicle deliveries. But Tesla has reiterated its loose guidance for "50% average annual growth in vehicle deliveries" over a multiyear horizon, including on its headtopics.com

third-quarter earningscall.JL Warren Capital's CEO and Head of Research, Junheng Li, wrote in a note to investors last week that she expects Tesla sales to continue to rise, at least in China this quarter. "Soaring gas price benefits all new energy vehicle brands," in the country she noted.

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Some 1.3 million electric vehicles were sold in China in 2020,. The firm predicted that the number would grow to 1.9 million EV sales in China by the end of this year.China remains the world's largest market for new cars, with strong government support for going electric.

Here's the full e-mail that Elon Musk sent out on Friday to all Tesla employees (transcribed by CNBC).From: Elon MuskSubj. Q4 deliveries vs. cost efficiencyDate: Nov. 26, 2021 [time stamp redacted]Per my email several weeks ago, our focus this quarter should be on minimizing

costof deliveries rather than spending heavily on expedite fees, overtime and temporary contractors just so that cars arrive in Q4.What has happened historically is that we sprint like crazy at end of quarter to maximize deliveries, but then deliveries drop massively in the first few weeks of the next quarter. In effect, looked at over a six month period, we won't have delivered any extra cars but we will have spent a lot of money and burned ourselves out to accelerate deliveries in the last two weeks of each quarter. headtopics.com

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We will still have quite a big wave of deliveries in the last few weeks of December, as we don't yet have high volume production either in Europe or Texas, which means a lot of cars on boats from China to Europe and on trucks [and/or] rail from California to the East Coast arriving late in the quarter, but this is nonetheless the right time to start reducing the size of the wave in favor of a steadier and more 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.

Read more: CNBC »

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MichaelBurry Warns Retail Traders About the 'Mother of All Crashes' Elon Musk tells his dudes. If they can't lower the prices they tell him why. Brainstorm time. No 'urging' just facts. Maybe Elon Musk should sell some more of his shares to cover the cost? What about urging quality control? Tesla build quality is infamous 😵‍💫

I don’t understand how a CEO tells his employees to reduce cost of deliveries? Perhaps employees should urge Musk to make less money to meditate the costs associated with vehicle deliveries. I must be missing something in his communication? They didn’t want dealerships, order online they said, well you are saving money so shouldnt delvery be free? Don’t care for them or Musk anyways. Creeps me out.

Cars shouldn’t cost more than a house. They should be eco friendly and durable. Car prices to need to come down. Why can’t the vehicle self-drive itself? This has to do with culture and goal setting. Change the goal to quarterly instead of annually somehow. President ripped for travel ban after calling Trump's 'racist'

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Company melts $58,000 Teslas into busts of Elon Musk that look nothing like himA company melted a $58,000 Tesla into a bust of Elon Musk , and we regret to inform you it looks absolutely nothing like Elon Musk this is terrible news 一家公司将一辆价值58000美元的特斯拉车融化成一尊埃隆麝香半身像,我们遗憾地通知您,它看起来绝对不像埃隆麝香 To be fair Elon Musk doesn’t look much like the real Elon Musk either

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