Elon Musk Wants Tesla To Reduce Delivery Costs In Q4

This change in strategy is reflective that Tesla's traditional end-of-quarter push for increased deliveries hasn't worked to enhance the numbers

By Sahil Gupta

1 mins read

Published on November 30, 2021

Highlights

Tesla will be reducing costs for deliveries in Q4
It usually has been pressing for more deliveries which has increased cost
Tesla has been paying overtime to employees and contractors

Tesla's supremo and the world's richest man, Elon Musk has revealed that his Tesla team is working overtime to ship as many vehicles as they can in this quarter. He particularly revealed that the focus is on reducing the cost of delivering cars. Tesla's excessive focus on delivering as many cars as possible has a knock-on effect of increased costs with the company spending heavily on things like employee overtime and temporary contractors. Musk has now emailed his team that Q4 will be different as he's asked the team to work on reducing costs rather than focus on delivering more cars. The email which has been revealed on Twitter is a follow-up to another mail from Q3 where Musk revealed that Tesla would start to spread out deliveries to reduce the end-of-quarter waves. The email reveals Musk's plan for Tesla "This is nonetheless the right time to start reducing the size of the wave in favor of a steadier and more efficient pace of deliveries," Musk says in the mail. This change in strategy is reflective of the fact that Tesla's traditional end-of-quarter push for increased deliveries hasn't really done much to enhance the overall numbers, both in terms of cars delivered or the bottom line. At best, this strategy made Tesla look good in front of investors. The idea is that Tesla sells and delivers as many cars as it has already been shipping but in a more staggered way. "Take the most efficient action, as if we were not publicly traded and the notion 'end of the quarter' didn't exist," he added.