Tesla On Track For Record Deliveries Ahead Of Battery Day Announcement

Tesla Motors will be on the path to announce record deliveries for a quarter according to a leaked email from its billionaire founder/CEO Elon Musk as per the electrek. Tesla is notoriously vertically integrated which means the entire distribution is owned by the electric company. This has a trickle-down effect on the financials of the company as it can't recognise the revenue unit the vehicles are delivered to the end-users. It also negatively impacts the financials because it spends money upfront to manufacture the cars.

Elon Musk even opened the Tesla factory during the pandemic to meet deliveries

"We have a shot at a record quarter for deliveries, but we'll have to rally hard to achieve it. This is the most number of vehicles per day that we' would ever have to deliver," Musk reportedly wrote in the leaked email. "Please consider vehicle deliveries to be the absolute top priority. It's also extremely important that we keep factory output as high as possible over the remaining 10 days. This is vital for the California market," he added.

Tesla is always in a scramble to reduce its inventory and increase its deliveries. So far the record for Tesla for most deliveries in a quarter has been 112,000 which happened in the fourth quarter of 2019. Wall Street analysts have already predicted that Tesla could overshoot that threshold with 121,000 deliveries.

Musk has hinted at record deliveries this quarter

Last quarter thanks to the pandemic it only managed to deliver 90,000 vehicles. Its inventory was shut down because its factory wasn't operational because of the pandemic. Tesla has been ramping up its operations as it is in the process of opening a new factory in Europe apart from having a facility in China apart from the gigafactory in the US.

Tesla has its battery day event incoming where it is slated to announce its improved battery supply which will improve its supply chain.