Elon Musk (Instagram photo / Elon Musk, unsplash, freepik)
Tesla shares rose no less than 5% today (Monday) after CEO Elon Musk issued a memorandum to employees, urging them to focus on minimizing costs, instead of speeding up last-minute orders to reach the company’s sales targets by the end of the quarter.
In a memo released on Friday, Musk wrote he did not want the company to spend a lot of money on “speeding up commissions, overtime and temporary contractors just to get cars to arrive in the fourth quarter. What has historically happened is we run like crazy at the end of the quarter to maximize shipments, but then Massive in the first weeks of next quarter, “he said Musk.
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“Actually, looking at a six-month period, we will not provide more cars, but we spent a lot of money and burned ourselves to speed up shipments in the last two weeks of each quarter.” Tesla has recently struggled to deliver new cars to customers in the U.S. According to the date ranges originally promised. This has led some Tesla customers to experience long months of delays in delivery.
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Still, sales have grown this year for Tesla. Car shipments totaled about 500,000 in 2020. The company is also making progress in its first European plant in Brandenburg, Germany. Tesla intended to start manufacturing vehicles by early summer 2021 in Germany, but construction of the plant was delayed following a court order backed by environmentalists who said their activities could harm rare snakes and lizards living in the area.
Last week, document submissions to the Texas Regulatory Department showed the company is making progress at a new automobile plant in Austin, Texas. Tesla plans to spend more than $ 1 billion on the plant and plans to complete construction by the end of the current year. Tesla also plans to invest $ 188 million to expand production capacity at its Shanghai plant, a state-sponsored Beijing Daily reported last weekend.
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