Read Elon Musk’s email to Tesla employees about accelerating Q2 deliveries

A recently leaked email from Tesla CEO Elon Musk has revealed that the electric car maker is seeing strong demand for its vehicles, though it would have to catch up to deliveries if it were to be definitively successful this quarter. Musk further noted that he would be holding regular calls with delivery teams from the United States, Asia, and Europe, to understand what is needed to optimize vehicle deliveries even more.

Below is the full text of Elon Musk’s recent email to Tesla employees.

To: Everybody

While our demand is strong, we have a lot of vehicle deliveries to catch up to in order to have a successful quarter.

Starting tomorrow, I will be holding skip-level calls with America, Asia, and Europe delivery teams every 2 days to understand what’s needed to accelerate the rate of deliveries.

We also need to address the total cost of getting a car from our factory to the customer. Last quarter, there were many expedites (sic) fees and routing inefficiencies that led to higher than expected delivery costs. This makes it much harder for Tesla ro (sic) break even.

Per my earlier email, if we execute well, Q2 will be an all-time record for Tesla vehicle deliveries and an awesome victory!!

Super excited to make this happen with you.

Elon

Musk’s emphasis on accelerating deliveries and adopting efficiencies to get vehicles to customers faster suggests that Tesla is dead serious about avoiding the same pitfalls it encountered in the first quarter. During Q1 2019, Tesla’s deliveries experienced difficulties as the company began saturating international markets with the Model 3. This ultimately caused Tesla to engage in an intense delivery blitz in March that ended with over 10,000 vehicles in transit at the end of the first quarter.

This recently leaked email all but highlights a point mentioned by Musk in a previous message to employees, where he noted that Tesla is seeing strong demand for its electric cars this quarter. In that email, Musk pointed out that Tesla is on track to exceed its record delivery figures from Q4 2019, a quarter that saw the company deliver over 90,000 vehicles to customers. Nevertheless, Musk noted that to accomplish this, Tesla would have to hit a sustained Model 3 production rate of 1,000 units per day.

These recently leaked updates from the Tesla CEO refutes one of the most persistent bear thesis against the company, which suggests that its vehicles are seeing an alleged “demand cliff.” If Musk’s internal emails are any indication, it appears that Tesla’s electric cars remain popular among consumers despite the company’s lower-than-expected figures in the first quarter.

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