Read the e-mail Elon Musk sent Tesla workers on cutting delivery costs
[ad_1]
Tesla Model Y compact crossover cars in a Shanghai showroom, China on January 18, 2021.
VCG | Visual China Group | Getty Images
Despite ongoing port restrictions and increasing shipping costs, shipping costsElon Musk, Tesla CEO and founder, encouraged employees on Friday to use an email that was sent across the company to seek ways to cut costs in order to deliver electric vehicles to customers. He also suggested not rushing to reach its quarterly sales goals by placing orders last minute.
Tesla is having difficulty delivering new vehicles to American customers within the promised timeframes this year. CNBC reported that some of the cars have not yet been delivered to customers in America. Tesla customers here experienced delivery delays of monthsThis means that they will have to pay out-of-pocket for rental cars and ride-hailing apps and will need to apply again for loans because of missed deadlines.
Tesla is not the only company that makes it difficult for customers to wait longer than expected before they receive their fully electric vehicles. For example, a newly-public competitor was unveiled last week. Rivian AutomotiveWe notified those who had booked their R1S (a sport utility car), of any delays.
Tesla’s sales growth this year has been unaffected by the infrequent delivery dates.
The closest thing to Elon Musk’s sales of electric vehicles and renewable energy businesses is vehicle deliveries. They amounted roughly to 500,000 in total for 2020. Tesla reported the delivery of approximately 500,000 units in 2021’s first quarter. 627,350 vehicles.
Tesla has not set a specific target for its 2021 vehicle sales since 2021. Tesla, however, has reiterated its “50% average annual growth of vehicle deliveries” guidance over a longer horizon. third-quarter earnings call.
Junheng Li (CEO and Head of Research at JL Warren Capital) wrote last week in an investor note that she expected Tesla sales to increase in China, at most, this quarter. She noted that “soaring gas prices benefit all new energy car brands.”
China sold approximately 1.3 million electric vehicles in 2020. according to Canalys research. According to the firm, this number will rise to 1.9million EVs in China by year’s end.
China is still the largest new car market in the world, and there’s strong support from government for electric vehicles.
This is Elon Musk’s complete email to employees of Tesla (transcribed and transcribed by CNBC).
From: Elon Musk
To Everybody
Subj. Q4 deliveries vs. cost efficiency
Date: Nov. 26, 2021 [time stamp redacted]
My email a few weeks ago stated that our quarter’s main focus should be on minimizing. Kostendeliver cars in the first quarter of each month, rather than spending large amounts on expedite fees overtime or temporary contractors.
The result is that, while we rush at the end each quarter in order to get the most deliveries, deliveries plummet dramatically the following quarter. We won’t have shipped any additional cars if we take a look over six months, but we will have spent much money on expediting deliveries the last two weeks.
As we do not yet have large volume production in Europe or Texas, there will be plenty of deliveries. This means that many vehicles are going to Europe via boats and trucks. [and/or]Rail from California to East Coast arrives late in quarter. However, this is the best time to reduce the volume of the wave and increase efficiency by delivering at a steady pace.
As though the stock were never publicly traded, the principle of efficiency is to use the least amount of resources.
Thanks,
Elon
[ad_2]