Rushing would yield nothing
Tesla is going fast this year. Unhindered by the chip shortage, the factories tinkered together no fewer than 637,000 cars in the first three quarters of 2021. Last year they built 500,000 units. Tesla CEO Elon Musk is now asking employees to slow down. Putting together like crazy Teslas apparently costs a lot of money, but actually it yields few extra deliveries.
Temporary contracts, expensive overtime and other things drive up the cost of production. And while there are more episodes now, that will decrease again in the fourth quarter. So it is a waste to spend extra money on production when a more stable output of the factory is cheaper and amounts to the same in the annual total. CNBC could view the email that Musk sent to all employees.
Musk asks Tesla factories to slow down
The Tesla boss said in the email: “What has happened historically is that at the end of the quarter we sprint like crazy to maximize deliveries, but then deliveries plummet in the first few weeks of the year.” the next quarter. In fact, over a six-month period, we haven’t delivered any additional cars, but we’ve spent a lot of money and burned ourselves up to speed up deliveries in the last two weeks of each quarter.”
