Elon Musk, CEO of Tesla (DSLA), said in a leaked email to employees that he had ‘a shot’ in the record quarter for vehicle delivery.
The quarter is coming to an end and, as usual, Tesla is in a rush of deliveries to improve its funding for the quarter.
Unlike other automakers, Tesla has its entire distribution system – that is, it owns each vehicle as long as it is delivered to customers.
This has a huge impact on the funds of automakers as revenue is not recognized until vehicles are delivered, and money is already spent on building those vehicles.
As a result Tesla is being pushed hard to reduce its inventory every quarter and deliver as many vehicles as possible by the end of the quarter.
In a new email to employees sent and received by Electric today, CEO Elon Musk told employees that “with all hands”, they can achieve record deliveries.
However, the CEO notes that they need to have more vehicles per day to deliver what they have so far:
“Deliveries have a shot in the record quarter, but we have to mobilize hard to achieve it. This is the largest number of vehicles a day, and we will always deliver.”
The previous quarters were when Tesla delivered 30% of total quarterly vehicles in the last week of the quarter.
Kasturi added to the email:
“Please consider vehicle supplies as an absolute priority. It is important to keep factory production as high as possible for the remaining 10 days. This is essential for the California market.”
Tesla’s last record distribution was 112,000 vehicles delivered in the fourth quarter of 2019.
While “record deliveries” may seem like a good thing, Tesla was expected to deliver significantly more vehicles in the fourth quarter.
Tesla’s Q3 distribution estimate from Wall Street analysts is 121,000 vehicles as of last week.
Last quarter, Tesla delivered 90,000 vehicles, but its inventory was badly affected as the factory closed due to the epidemic.
The results were considered positive considering the circumstances.
As usual with Elon’s emails to staff, he left the place for explanation, and did not go into details because he knew those emails would eventually leak.
But if Tesla wins its previous delivery record, it will be short.
It will be distributed between 110,000 and 115,000 vehicles.
Based on most estimates coming in the quarter this will be lower than expected.
The reason behind this is not yet clear to me, but expectations for Chinese supply may have been too high.
Tesla has announced the production capacity of 200,000 vehicles in the outgoing Gigafactory Shanghai from last quarter.
It led many of us to believe that China could contribute close to 50,000 vehicles in Q3, but it could have been more optimistic.
Either way, it is even more interesting that Tesla will reach a new record number in the current economic conditions, even if the ratings come to less than a few thousand vehicles.
What do you think? Let us know in the comments section below.
FTC: We use revenue generating automated connections. Further.
Subscribe to Electrek on YouTube for exclusive videos And subscribe Web light.
“Explorer. Devoted travel specialist. Web expert. Organizer. Social media geek. Coffee enthusiast. Extreme troublemaker. Food trailblazer. Total bacon buff.”