Elon Musk Is Changing Tesla's Old Delivery Strategy, Lots of Positives

With a recent leaked email from Elon Musk, we see that Tesla is going to be changing up its quarterly vehicle delivery strategy (See https://www.torquenews.com/14335/tesla-change-quarterly-delivery-strategy).

In the past, Tesla would rush to get deliveries done at the end of the quarter. This is no longer going to be the case and instead, Elon Musk wants Tesla employees to reduce costs of deliveries and take the most efficient action.

Elon Musk sent an email to Tesla employees likely to address the stress that comes at the end of each quarter and rushing to get deliveries done. I think this may also mean that Tesla won't rush to export so many vehicles at the beginning of each quarter and instead even it out each month. Elon wants Tesla employees to take the most efficient action at all times and to not think like Tesla is publicly traded and to forget the notion of "end of quarter".

Elon sent an email in Q3, 2021, according to Sawyer Merritt on Twitter, where he stated that sometime in Q4 or Q2 of 2021 that Tesla would start to spread out deliveries more to reduce the end of quarter waves. Elon looked at over a 6 month period where Tesla wouldn't have delivered any extra cars but would have instead spent a lot of money and burned employees out to accelerate the deliveries in the last 2 weeks of each quarter.

This is a Positive Move for Tesla

"I think this is a good move from Tesla. Imagine if at the end of each quarter that you felt rushed and pressured to make as many deliveries as possible. Now imagine the stress that would come form this and the corners that may be cut in order to make this happen. Imagine the habits and inefficiencies that are created by operating this way," says Jeremy Johnson from Torque News Tesla reporting team.

Here is the full text of Elon Musk's email announcing the change of how Tesla now will delivery its vehicles without stress.

"Per my email several weeks ago, our focus this quarter should be on minimizing cost of 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.

"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.

"Thanks, - Elon"

#ElonMusk
#Tesla

This is Armen Hareyan from Torque News. Please follow us at https://twitter.com/torquenewsauto on Twitter and https://www.torquenews.com/ for daily automotive news.

Reference
Jeremy Johnson of Torque News Tesla team https://www.torquenews.com/14335/tesla-change-quarterly-delivery-strategy
Sawyer Merritt https://twitter.com/SawyerMerritt/status/1464640186868973570

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