On Tuesday, in a leaked email, CEO of Space X, Elon Musk says is very close to setting a record for the number of vehicles delivered in one quarter, and delivery logistics will play an important role in deciding whether that record is broken. Part of the mail read;
“We already have enough vehicle orders to set a record, but the right cars are not yet all in the right locations,” Musk said. “Logistics and final delivery are extremely important, as well as finding the demand for vehicle variants that are available locally, but can’t reach people who ordered that variant before end of the quarter.”
In the fourth quarter of 2018, 90,700 vehicles, was the set quarterly delivery record. On June 11, Musk expressed a sentiment at Tesla’s annual shareholder meeting which he said the company had a ‘decent shot’ of breaking its quarterly delivery record.
Internal documents viewed by Business Insider suggested that the electric-car maker was not on pace to break the record between late May and early June, based on a criterion described by Musk in a May 22 email to employees.
According to some analysts, Tesla’s first-quarter suggested a decrease in demand in the number of vehicles, however, it was blamed on logistics as being the main challenge concerning international deliveries and seasonal trends. Due to this, the second-quarter delivery numbers will face intense scrutiny.
Tesla approximates it might turn out profitable in the third quarter but not in the second. The second quarter might not set a company record but it could reinstate confidence in the demand for Tesla’s vehicles and hence attract profits.
Although few delivery numbers could raise concerns about demand and Tesla’s chances of achieving consistent profitability. The company has produced four profitable quarters in its 16 – year history, including two in the second half of 2018, when delivery numbers recorded high records
Here is the email: As you may have noticed, there is a lot of speculation regarding our vehicle deliveries this quarter. The reality is that we are on track to set a record, but it will be very close. However, if we go all out, we can do it! We already have enough vehicle orders to set a record, but the right cars are not yet all in the right locations. Logistics and final delivery are extremely important, as well as finding the demand for vehicle variants that are available locally, but can’t reach people who ordered that variant before end of the quarter. I have great faith in you. Please let me know if there is anything I can do to help. Thanks, Elon
Featured Image Courtesy: Twitter/Elon Musk