Tesla to change its quarterly delivery strategy
THE STORY IS ON …
Elon Musk’s email to Tesla employees
Elon Musk emailed Tesla employees who might address the stress that comes at the end of each quarter and rush to make deliveries. I think it may also mean that Tesla won’t rush to export so many vehicles at the start of each quarter and instead will equalize it each month. Elon wants Tesla employees to take the most effective action at all times and not think as if Tesla is listed on the stock exchange and forget about the notion of “end of quarter”.
Elon sent an email in the third quarter of 2021, according to Sawyer Merritt on Twitter, where he said that during the fourth or second quarter of 2021, Tesla will begin to further stagger deliveries to reduce the end of quarter waves. . Elon looked over a 6 month period where Tesla would not have delivered additional cars but instead spent a lot of money and exhausted its employees to speed up deliveries in the last 2 weeks of each quarter.
I was told that Elon Musk emailed all Tesla employees last night.
Elon wants employees to focus this quarter on minimizing the * cost * of deliveries, rather than spending heavily on shipping, overtime, and temporary contractors just to get the cars to arrive in the fourth quarter.
– Sawyer Merritt (@SawyerMerritt) November 27, 2021
It’s a positive move for Tesla
I think this is a good initiative from Tesla. Imagine if at the end of each quarter you felt rushed and pressured to make as many deliveries as possible. Now imagine the stress that would come from this and the corners that could be cut to make it happen. Imagine the habits and inefficiencies that are created by operating in this way.
Now imagine that instead of insisting on meeting quarterly deadlines, Tesla employees focus on the customer experience and on delivering as efficient as possible. There is no longer the crunch and stress of the end of the quarter because you no longer think like a public company, trying to achieve quarterly results.
This is a positive point for Tesla overall. If I had to work in a company and suffered two weeks of extreme stress four times a year, it would have adverse consequences on my health. I would not work in a calm and relaxed state. I would make mistakes and cut corners. This new approach from Elon keeps the same culture of being efficient and doing the right thing without rushing efforts.
Will this affect quarterly income?
Will this affect Tesla’s quarterly profits? If they implement this right now, we might see a little less shipments in Q4 2021. After that, I don’t think we’ll see much negative on Tesla’s quarterly shipments. The reason is that employees will focus on efficient, low cost deliveries and find a way to get deliveries to happen on time instead of cramming them into two weeks.
What do you think of Tesla’s new strategy for quarterly deliveries? Will Tesla stop exporting so many vehicles at the start of each quarter now?
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Jeremy Johnson is an investor and supporter of Tesla. He first invested in Tesla in 2017 after years of following Elon Musk and admiring his work ethic and intelligence. He has since grown into a Tesla Bull, covering everything he can find on Tesla, while also taking an interest in other EV companies. Jeremy covers Tesla developments at Torque News. You can follow it on Twitter or LinkedIn to stay in touch and follow her Tesla news coverage on Torque News.