- On Friday, Tesla CEO Elon Musk urged employees to focus on “reducing the cost of delivery,” not just speeding up the delivery of cars to customers to achieve quarter-end goals.
- Tesla has accelerated the delivery of cars to customers, typically at the end of each quarter.
- Now, Tesla and other automakers are facing parts shortages, port shortages and high shipping costs.
Amid ongoing port constraints and rising shipping costs, Tesla CEO Elon Musk urged employees in a company-wide email obtained by Businesshala on Friday to look for ways to reduce the cost of delivering electric vehicles to customers, Instead of ordering at the last minute. To reach your end of quarter sales goals.
This year, Tesla has struggled to deliver new cars to customers in the US in line with the date ranges originally promised. As previously reported by Businesshala, some Tesla customers experienced months of delivery delays here, forcing them to pay out-of-pocket for rental and ride-hailing apps, and again for loans due to expire. Application required.
Tesla isn’t the only one who has left customers waiting longer than expected for their new, fully electric cars. Last week, for example, new public competitor Rivian Automotive notified people who reserved its R1S, a sport utility vehicle, of a delay in delivery.
Still, this year has seen sales growth for Tesla regardless of unexpected delivery dates.
Vehicle deliveries, which are the closest approximation to sales reported by Elon Musk’s electric vehicle and renewable energy business, totaled about 500,000 in 2020. During the first three quarters of 2021, Tesla 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 lax guidance for “50% average annual growth in vehicle delivery” over a multi-pronged horizon, including in its third-quarter earnings call.
Juneng Li, CEO and head of research at JL Warren Capital, wrote in a note to investors last week that he expects Tesla sales to continue to grow, at least in China this quarter. “Rising gas prices benefit all new energy vehicle brands,” he said.
About 1.3 million electric vehicles were sold in China in 2020, According to the research of Canalis, The firm predicted that number would increase to 1.9 million EV sales in China by the end of this year.
With strong government support for going electric, China remains the world’s largest market for new cars.
Here’s the full e-mail Elon Musk sent Friday to all Tesla employees (written by Businesshala).