Automotive News   |   Automotive News Europe   |   Autoweek   |   Automobilwoche

Automotive News China Newsletter
Register our free newsletter, sent each Monday and Thursday

     Automakers   Suppliers   Auto Show   Comment   Car Cutaway   Newsletters   Press Releases   Register for Newsletter
  Contact Us:   Editorial   Advertising   Subscription Information   |   About Us   Media Kit
Home >> Automaker Email this story   Print this story
 
In China and beyond, Musk urges Tesla delivery crews to 'catch up'
Bloomberg | 2019/5/31

Tesla Inc. CEO Elon Musk sent a second email to employees in as many weeks painting a positive picture of demand for the company¡¯s electric vehicles, after swirling doubt about the pace of deliveries sent shares in the company tumbling.

¡°While our demand is strong, we have a lot of vehicle deliveries to catch up to in order to have a successful quarter,¡± Tesla wrote to employees Wednesday. Musk said that starting Thursday, he¡¯ll hold calls with teams in America, Asia and Europe every two days to ¡°understand what¡¯s needed to accelerate¡± Tesla¡¯s rate of deliveries.

Tesla shares have plunged 43 percent this year, with the sell-off accelerating since the company reported deliveries of just 63,000 cars in the first quarter. Musk has struggled to overcome the impact of shrinking U.S. federal tax credits and analysts have voiced concern about the hit the company could take from the trade war with China, its second-largest market.

Tesla has said it expects to deliver 90,000 to 100,000 vehicles in the second quarter. On a call with investors last week, Morgan Stanley analyst Adam Jonas said the ¡°whisper number¡± on Wall Street was for deliveries to reach the mid to upper 70,000-unit range.

Musk countered speculation about weak demand with an internal email last week, in which he wrote Tesla has a ¡°good chance¡± of exceeding the 90,700 deliveries achieved in the last three months of 2018.

¡°Per my earlier email, if we execute well, Q2 will be an all-time record for Tesla vehicle deliveries and an awesome victory!!¡± Musk wrote Wednesday.

Cutting costs
In April, Tesla reported an adjusted loss per share that was more than double the deficit analysts were estimating. While Musk, 47, forecast a loss for this quarter, he¡¯s expecting a return to profitability in the following three months.

In the email Wednesday, the CEO said that fees to expedite shipments and routing inefficiencies led to higher-than-expected delivery costs in the first quarter. He said the company needed to address those costs to make it easier to break even.

A representative for Tesla didn¡¯t respond to requests for comment on Musk¡¯s email. 

Related Stories
  • Tesla to revamp Asia business to focus on China, report says
  •     --Published:2019/21/6
     
  • U.S. denies Tesla request for tariff relief on Chinese-made Model 3 'brain'
  •     --Published:2019/13/6
     
  • Tesla cuts price on China-built Model 3 ahead of launch
  •     --Published:2019/4/6
     
  • Volvo's Polestar brand intensifies Tesla challenge with 'powerful little beast'
  •     --Published:2019/17/5
     
  • U.S. rejects Tesla bid for tariff exemption for China-made Autopilot 'brain'
  •     --Published:2019/7/5
     
  • Tesla China plant takes shape
  •     --Published:2019/30/4
     
  • Tesla: China output may hit 2,000 a week in 2019
  •     --Published:2019/26/4
     
  • Tesla Model S, parked, explodes in Shanghai, prompting probe
  •     --Published:2019/23/4
     
  • VW plans Tesla-fighting electric crossover
  •     --Published:2019/16/4
     
  • Tesla accuses China billionaire's engineer of stealing tech secrets
  •     --Published:2019/26/3
     
  • Tesla sues former engineer now at Chinese startup for theft
  •     --Published:2019/22/3
     
  • China customs lifts suspension on Tesla Model 3 imports
  •     --Published:2019/15/3
     
  • Tesla in talks with CATL for big battery order, report says
  •     --Published:2019/12/3
       
     
     

    Our Newsletter Editions
    Automotive News China produces two email newsletters each week. You can sort your news by the articles highlighted in each of our newsletters here.

    Select your newsletter     

     
     

    Automotive News China
    Room 1303, Building 2, Lane 99, South Hongcao Road,
    Shanghai 200233
    Telephone: 86-139-1851-5816
    Fax: 86-21-6495-0895
     
    Home | Help Center | About Us | Privacy Policy | RSS
    Entire contents © Crain Communications, Inc.
    Use of editorial content without permission is strictly prohibited. All Rights Reserved.
    »¦ICP±¸06057291ºÅ