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Elon Musk wants Tesla staff to slow down and cut costs
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Elon Musk has told workers at Tesla not to rush to meet orders, but rather to focus on minimising costs.
The famous CEO recently sent out a company-wide email that was seen byCNBC. In the email, Musk ordered that the focus for the quarter should be on “minimizing cost of deliveries rather than spending heavily on expedite fees, overtime and temporary contractors just so that cars arrive in Q4.”
Musk claimed that the company had historically made every effort to “maximise deliveries” at the end of the quarter, but that the company’s deliveries then tended to drop off during the first part of the following quarter.
The Tesla CEO’s stated preference would be to avoid the resulting increase in costs and burn out in favour of “a steadier and more efficient pace of deliveries”.
Tesla delivered 500,000 cars in total in 2020, but has already reported 627,350 deliveries in the first three quarters of 2021. This in spite of the ongoing logistical issue and component shortages blighting every industry, including the automotive business.
The company hasn’t revealed a target for 2021, but has a loose aim of “50% average annual growth in vehicle deliveries” over the coming years.
Not that Tesla’s production line has been unaffected by current global shortages. In mid-November, it was reported that some new Tesla customers were noticing that their vehicles were missing USB-C ports. Tesla has said that this is due to the aforementioned chip shortages, and that customers would be able to make an appointment to have the USB ports installed once the issues had been resolved.
The companyrecently startedopening out its charging facilities to other EV brands – other brands that are starting toramp uptheir electric vehicle efforts.
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Jon is a seasoned freelance writer who started covering games and apps in 2007 before expanding into smartphones and consumer tech, dabbling in lifestyle and media coverage along the way. Besides bein…
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Founded in 2003, Trusted Reviews exists to give our readers thorough, unbiased and independent advice on what to buy.
Today, we have millions of users a month from around the world, and assess more than 1,000 products a year.
Editorial independence means being able to give an unbiased verdict about a product or company, with the avoidance of conflicts of interest. To ensure this is possible, every member of the editorial staff follows a clear code of conduct.
We also expect our journalists to follow clear ethical standards in their work. Our staff members must strive for honesty and accuracy in everything they do. We follow the IPSO Editors’ code of practice to underpin these standards.
