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Elon Musk urges staff to cut Tesla delivery costs

Elon Musk urges staff to cut Tesla delivery costs

Tesla CEO Elon Musk has urged employees to cut costs due to Tesla deliveries, and therefore not rush to deliver vehicles in the current quarter, which includes the holiday season. Musk prefers his employees to focus on reducing costs, because he doesn’t want the company to “spend too much on taxes, overtime and temporary contractors just to get the cars delivered in the fourth quarter.” Tesla, it is good to remember that it typically tends to increase car deliveries to customers at the end of each quarter.

Elon Musk prefers to spread Tesla delivery costs over the quarter to save money

In a note sent to employees and revealed by CNBC, Tesla’s CEO said what has historically happened is that “we sprint like crazy at the end of the quarter to maximize deliveries, but then deliveries drop massively in the first few weeks of the year. next quarter. In fact, considering a six-month period, we will not have delivered extra cars, but we will have spent a lot of money and exhausted ourselves to speed up deliveries in the last two weeks of each quarter, ”Musk wrote in the email.

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The reminder was sent after Tesla was able to increase its global deliveries to over 241,000 in the last quarter, despite supply chain problems and chip shortages. Tesla has not released a clear delivery target for 2021, but aims to increase them by around 50% year-on-year, according to CNBC.

Tesla reiterated that he is working towards one “Average annual growth of 50% in vehicle deliveries” over a multi-year horizon, which in fact seems to be happening considering the record profits made in the third quarter of the year.

The “electric” carmaker delivered 500,000 vehicles in 2020 and has already reported having delivered 627,350 in the first three quarters of 2021.