Elon Musk urges his Tesla employees to cut vehicle delivery cost

Posted:

November 29, 2021 04:45 GMT

The announcement comes amid a shortage of spare parts, port restrictions and rising freight costs.

Tesla co-founder and CEO Elon Musk on Friday urged his employees in an email to find a way to “reduce the cost of ‘delivering electric vehicles to customers,’ rather than spending heavily on tariffs to arrive in the fourth quarter.”

The business also urges its employees not to rush deliveries to meet quarter-end sales targets. “We’re running crazy at the end of the quarter to maximize deliveries, but then deliveries drop dramatically in the first weeks of the next quarter,” says Musk in his letter, which was accessed by CNBC.

This announcement comes amid continuous Port restrictionsand the lack of spare parts and increased shipping costs that automakers have faced recently.

So far this year, Tesla has struggled to deliver new cars to US customers on schedule, although it’s not the only company facing these setbacks. Last week, for example, rival Rivian Automotive announced delivery delays for those who had booked its R1S, an SUV.

Despite everything, Tesla sales have grown this year. The company achieved net profits of $1.14 billion in the second quarter of this year, the first time this figure has exceeded $1 billion.