Tesla, no deliveries at all costs for this quarter

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Tesla seems intent on changing its strategy by the end of the last quarter of 2021. Over the years it had practically become a tradition for the American car manufacturer to commit at the end of each quarter in a & quot; sprint & quot; to get to deliver the most; high possible number of cars. It seems that Q4 of 2021 will be; different from this point of view and could also be the beginning of a process to make more efficient and less expensive the delivery process.

As is known, Tesla does not rely on dealerships and sells directly to customers. This system has always created “waves” in deliveries, especially at the end of each quarter. The problem is; that, in addition to offering a non-optimal delivery experience to customers, this system is; inefficient and expensive for Tesla . In order to deliver the cars on time, the company & agrave; must pay, for example, overtime to employees who are also put under pressure, and hire more staff for a short period.

Furthermore, due to this practice, in the weeks following each quarter, deliveries collapse drastically. A system that Tesla seems to want to change. Within an email sent to employees, Elon Musk urges them to focus more on reducing costs rather than focusing on numbers even if this, of course, could delay some deliveries to the 2022. The whole forgetting to be listed on the stock exchange and the classic goal of the end of the quarter.

TOWARDS GREATER EFFICIENCY IN DELIVERIES?

Musk also says that there will be & agrave; certainly still a fairly large wave of deliveries in the last weeks of December since at the moment it can't be done; rely on the Gigafactory of Texas and Germany but that is; however, the time has come for to begin to adopt a more rhythm of deliveries; stable and efficient . Is not serious; the first time Tesla CEO talks about starting to reduce the weight of the quarter-end sprint. Now, however, it seems that the manufacturer really intends to follow this path.

Of course, this choice could prevent Tesla from reaching new records but it could open the way to a new and more & ugrave; accurate management of the delivery system. After all, the Gigafactories in Berlin and Texas will be able to make their important contribution very soon. This means that in the other production sites caler & agrave; the & quot; pressure & quot ;. At that point, for Tesla it will be & agrave; much more; easy to organize a more delivery process; efficient and less expensive.

We will see, therefore, how it ends; Q4 of 2021 and if Tesla really will change tactics. In all this, there will be; also to understand how to react; the bag.

According to my email from several weeks ago, our goal this quarter should be to minimize delivery costs rather than spending a lot on overtime and temporary employees just so the cars arrive on time in the fourth quarter. What is historically successful & egrave; 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 next quarter. In fact, if we consider a six-month period, we won't have delivered any extra cars, but we will have spent a lot of money and gone out of stock to speed up deliveries in the last two weeks of each quarter. We will still have a fairly large wave of deliveries in the last weeks of December, since we do not yet have a high-volume production n & eacute; in Europe n & eacute; in Texas, which means sending lots of cars on boats from China to Europe and on trucks [and/or] rail from California to the east coast, but this is true. however the right time to start reducing the size of the wave in favor of a faster delivery rate stable and efficient. The right principle is take the most action efficient, as if we were not listed on the stock exchange and the notion of & ldquo; end of quarter & rdquo; did not exist.

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