Musk Tells Tesla Staff to Focus on Reducing Shipping Fees

Tesla CEO Elon Musk told all employees in an email that “run like a madman ” to provide vehicles, indicating that even the company they destroy great effort, speed and cost savings do not provide many vehicles.

In his email, which was sent Friday available by CNBC, Musk instead urged employees to focus more on “reducing shipping costs” instead of using cash buckets on fast-moving economies, overtime, and short-term contractors to ensure vehicles reach customers in the fourth quarter of the year, which could help sell. goals.

Tesla cars are the closest to what the company produces, because its sales are worldwide, and it is not. publishing regional data. Mu the third part This year, the company produced 237,823 vehicles and produced 241,300 shipments.

“What has happened in history is that we run like crazy at the end of the quarter to increase freight, but deliveries fall sharply in the first few weeks of the next quarter,” Musk wrote, according to a CNBC report. “Instead, when we look at the six months, we did not provide additional vehicles but we would have spent a lot of money and burned them to speed up the shipment in the last two weeks of each quarter.”

Tesla’s chief executive added that the company has a “big return history” that is being made in the last few weeks of December because it had not yet been able to produce more cars in Europe or Texas here. For example, there are a lot of cars being transported on boats from China, where Tesla owns a Gigafactory in Shanghai with production capacity 450,000 electric cars a year, going to Europe.

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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 luxury car company globally, though Musk tried to lower corporate prices. (Example: A tweet these old Mother where he said “Tesla stock price is too high imo,” which wiped out billions discount on the market price of the company).

While Musk’s email is clear on business, Tesla customers who expect to be delivered in the next few weeks may not be happy about it. Many Tesla customers have been waiting for their new cars for several months and have seen the days expected to be changed again, CNBC also said. Some of these customers have to pay a lot of money to buy rental cars as well as terrestrial services in it. Customers who contributed money to their new Teslas are also affected, as these delays could affect their credit and insurance prices.

In October, Tesla filed its own record earnings large quarter in history, a total of $ 1.62 billion. At the time, the company acknowledged its delay, which it did from global challenges and Logistics challenges. To date, it has delivered 627,572 vehicles this year.