As Tesla heads into the final days of the third quarter, the electric car maker is attempting to ramp its electric car deliveries to reservation holders. Last week, Elon Musk noted on Twitter that Tesla has transitioned from one hell to another with regards to the Model 3 ramp. While Tesla is currently leaving production hell, the company is now experiencing what Musk describes as “delivery logistics hell.”
Just like in previous quarters, Tesla is adopting a series of unorthodox strategies to address the company’s bottlenecks. The recent volunteer-boosted Model 3 delivery weekend, which tapped the company’s longtime owners to help new reservation holders get familiar with their electric cars, was one of these strategies. That said, while the volunteer delivery assistance initiative seemed to have been successful, the company still has delivery challenges to overcome before the end of Q3.
This was addressed on Twitter by Tesla owner-enthusiast Chris Barker, who noted that his Model S lease was almost done but his order for a Model 3 Dual Motor AWD was still delayed. Elon Musk promptly issued an apology, while stating that the company is adopting a system to expedite the delivery of its electric cars. According to the CEO, a shortage of car carrier trailers has resulted in the company building its own car carriers to alleviate the load.
Apologies, we’re upgrading our logistics system, but running into an extreme shortage of car carrier trailers. Started building our own car carriers this weekend to alleviate load.
— Elon Musk (@elonmusk) September 24, 2018
Such a strategy is undoubtedly unusual for an automaker. Conventional automakers usually employ car carrier trailers to transport vehicles from the manufacturing plant to dealerships, where the vehicles would be stored until they are bought by customers. Tesla’s business model does not utilize dealerships, and the company is in the middle of ramping its deliveries for the Model 3. As such, car carrier trailers filled with electric vehicles are deployed from the main Fremont factory directly to delivery centers, where they are received by reservation holders. Considering the mass number of vehicles that need to be moved and distributed, a shortage of car carriers is understandable.
Elon Musk has not provided any other details about Tesla’s self-designed car carriers, but it would be quite interesting to see how the units were designed and rolled out, including any permits that were possibly filed for the construction and deployment of the transport carriers. That said, such a strategy is reflective of the company’s tendency to adopt creative, outside-the-box solutions when it’s faced with issues and bottlenecks. Last quarter, it was a production line built in a sprung structure. This time around, it appears to be car carriers developed and manufactured in-house.
In a letter to employees, Elon Musk has mentioned that Tesla is “about to have the most amazing quarter in (its) history, building and delivering more than twice as many cars as (it) did last quarter.” Tesla board member Kimbal Musk also mentioned in a CNBC Closing Bell report that the number of Model 3 that would be appearing on American roads at the end of September would probably be shocking to some. If Tesla is running out of car carriers to transport its vehicles to delivery centers, then both Elon and Kimbal Musk’s statements for Q3 2018 might very well prove to be accurate.
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I like reading positive news about Tesla, but just as the negative views I often find Teslarati and Electrec (and other green tec industry related newssites) being a little bit too positive about everything that Tesla struggles with.
There is no shortage of car trailers. There are plenty of car trailers in America. Every Tesla sold means that some other car maker has lost a sale. One more car for Tesla's trailer, one car less for a trailer carrying BMWs or Audis. Those trailers can pickup Model 3's.
The issue is most likely that Tesla didn't reserve/order them in time and because of the recent ramp-up AND the horrible self-inflicted "end of quarter rush" are now having difficulties getting enough trailers (and trucks, and drivers).
Now I'm not saying this could be averted easily, but I don't buy the "shortage of car trailers" story. This is a case of "improper logistic planning" from Tesla. Now, again.. I'm not saying this could have been easily prevented. I understand ramping up production of cars comes with unique difficulties that might or might not be solvable, but lets remain a bit neutral.
Teslarati and the like seems to give a positive spin about all negative issues Tesla is facing
The automobile delivery system was already being stressed. The primary issues this year have been a lack of truck drivers and a rail car shortage. The majority of cars in the US travel via rail for at least part of their journey because it is cheaper than trucks. The lack of rail capacity has forced those cars onto trucks where they are bumping into the lack of drivers. The truck driving industry is facing a similar problem to the airline industry in that many of its drivers (pilots) are retiring and not enough young people are entering the industry. Tesla doesn't use rail for delivery so they are simply compounding the the strain on trucking delivery system.
I agree that Tesla seems to have been caught of guard by this and they are in need of a a good logistics department. Lack of delivery capacity had been a hot topic of discussion within the auto industry for the last 18 months or so.
I like reading positive news about Tesla, but just as the negative views I often find Teslarati and Electrec (and other green tec industry related newssites) being a little bit too positive about everything that Tesla struggles with.
There is no shortage of car trailers. There are plenty of car trailers in America. Every Tesla sold means that some other car maker has lost a sale. One more car for Tesla's trailer, one car less for a trailer carrying BMWs or Audis. Those trailers can pickup Model 3's.
The issue is most likely that Tesla didn't reserve/order them in time and because of the recent ramp-up AND the horrible self-inflicted "end of quarter rush" are now having difficulties getting enough trailers (and trucks, and drivers).
Now I'm not saying this could be averted easily, but I don't buy the "shortage of car trailers" story. This is a case of "improper logistic planning" from Tesla. Now, again.. I'm not saying this could have been easily prevented. I understand ramping up production of cars comes with unique difficulties that might or might not be solvable, but lets remain a bit neutral.
Teslarati and the like seems to give a positive spin about all negative issues Tesla is facing
You might considsr the possibility that the car carrier companies could be feeling pressure from their main customers.
@jeroen
I and many others welcome Teslarati's positive articles. If you want negativity, there is almost nothing but negativity and fake/spun FUD news about Tesla by mainstream media, who have an obvious negative bias towards Tesla. To the point of being completely absurd and malicious. Unfornately most people with limited insight into and interest in Tesla, believe all the negative BS.
Teslarati's news stories are a drop in the ocean compared to the sea of oil/short driven negative news in the US from the likes of Bloomberg, Yahoo Finance, Fox News, etc. Teslarati probably doesn't even represent 1% in terms of Tesla news volume/exposure.
Additionally, the positive spins that Teslarati apply, are not even in the vicinity of how mainstream media negatively spins Tesla news. Even worse they also conveniently leave out all the incredibly positive stories. Teslarati helps balance things, even if things are still heavily skewed towards the ridiculously negative.
Written like a wounded kitten..
How about accurate news w/o the systemic rah rah and hype?
How about real facts w/o ambiguity?
Building vehicle carriers without drivers to operate the truck tractors pulling seems like a dead end proposition.
Lotta stop gap stuff
Do other vehicle manufacturers operate in such a hap hazard chaotic manner?
Can anyone make consistant money while running a business like mice caught in the light?
Guess we're gonna see..
(...)
There is no shortage of car trailers. There are plenty of car trailers in America. Every Tesla sold means that some other car maker has lost a sale. One more car for Tesla's trailer, one car less for a trailer carrying BMWs or Audis. Those trailers can pickup Model 3's. (...)[/QUOTE]
Pray tell us to what extent you are aware in the Netherlands of factual availability of car carriers in the US... And even if your premise is correct, I applaud T≡SLA ‘s tremendous efforts to close the quarter as high as possible whatever it takes. Remember the company is still trying to survive for the greater good, man... and 3Q + 4Q earnings will be significant milestones!
[QUOTE=“Jeroen Huisinga, post: 23797, member: 34728”] Teslarati and the like seems to give a positive spin about all negative issues Tesla is facing
I’ll second @halfpat ’s response here. That’s why Teslarati is a breath of fresh air in an-otherwise swampy media atmosphere. Is there anything wrong about putting a positive spin on challenges...?? I’d like to believe that is a much more hopeful look at life, particularly when such a laudable cause as T≡SLA is concerned...
Written like a wounded kitten..
How about accurate news w/o the systemic rah rah and hype?
How about real facts w/o ambiguity?
Building vehicle carriers without drivers to operate the truck tractors pulling seems like a dead end proposition.
Lotta stop gap stuff
Do other vehicle manufacturers operate in such a hap hazard chaotic manner?
Can anyone make consistant money while running a business like mice caught in the light?
Guess we're gonna see..
Joe, it never ceases to amaze me that a (presumably) happy - and in any case fortunate - Model S owner like you finds it necessary to post as much T≡SLA-bashing.
As I wrote back to @Jeroen Huizinga , why not praise Elon & the entire team for ALL they are trying to do to succeed. They get no help from legacy ICE carmakers, nor from the fossil fuel industry or the mainstream media... yet their mission is sound & healthy and it makes a lot of new EV owners feeling great!
Do you want them to fail?? :rolleyes::rolleyes:
The automobile delivery system was already being stressed. The primary issues this year have been a lack of truck drivers and a rail car shortage. The majority of cars in the US travel via rail for at least part of their journey because it is cheaper than trucks. The lack of rail capacity has forced those cars onto trucks where they are bumping into the lack of drivers. The truck driving industry is facing a similar problem to the airline industry in that many of its drivers (pilots) are retiring and not enough young people are entering the industry. Tesla doesn't use rail for delivery so they are simply compounding the the strain on trucking delivery system.
The shortage of truck drivers is an issue in Europe as well, so I understand that part. But building car trailers doesn't solve that issue if you have nobody to haul the trailers. Also, I would think that it would be much smarter to just purchase car trailers instead of building them yourself. Building these puppies is not something you do on your Model 3 assembly line. Whats next? We hear about "car trailer production hell?"
It would perhaps also be a good idea to start European (and perhaps China) production in the same time as US production. It would unload the service- and delivery centers, as it would be spread out over the world instead of just America. I understand that will mean some additional complexity during production, but would solve a lot of problems now.
Very positive is that @Tesla they are starting up an extra assemblage factory for the M3 in Tilburg. So the european production will be starting soon. :):cool::D:)
(...)
It would perhaps also be a good idea to start European (and perhaps China) production in the same time as US production (...)
It would be a good idea yet operationally and financially unrealistic in one go and at this point right now for the T≡SLA.
They are doing the best they can. I commend their efforts.
Remember, this is a do-or-die quarter for Tesla. If I were an ICE care company, I'd reserve as many car carriers as I can find just to screw Tesla, to make them look bad, so that the stock plunges, people worry about the company future, and orders fall. Don't believe me? It's happened many times before. Entrenched energy interests will do ANYTHING (even murder, think of Kerr-McGhee in the 1970's murdering its own employees) to protect its financial interests.
There is no shortage of car trailers. There are plenty of car trailers in America. Every Tesla sold means that some other car maker has lost a sale. One more car for Tesla's trailer, one car less for a trailer carrying BMWs or Audis. Those trailers can pickup Model 3's.
The issue is most likely that Tesla didn't reserve/order them in time and because of the recent ramp-up AND the horrible self-inflicted "end of quarter rush" are now having difficulties getting enough trailers (and trucks, and drivers).
Now I'm not saying this could be averted easily, but I don't buy the "shortage of car trailers" story. This is a case of "improper logistic planning" from Tesla. Now, again.. I'm not saying this could have been easily prevented. I understand ramping up production of cars comes with unique difficulties that might or might not be solvable, but lets remain a bit neutral.
Teslarati and the like seems to give a positive spin about all negative issues Tesla is facing
I and many others welcome Teslarati's positive articles. If you want negativity, there is almost nothing but negativity and fake/spun FUD news about Tesla by mainstream media, who have an obvious negative bias towards Tesla. To the point of being completely absurd and malicious. Unfornately most people with limited insight into and interest in Tesla, believe all the negative BS.
Teslarati's news stories are a drop in the ocean compared to the sea of oil/short driven negative news in the US from the likes of Bloomberg, Yahoo Finance, Fox News, etc. Teslarati probably doesn't even represent 1% in terms of Tesla news volume/exposure.
Additionally, the positive spins that Teslarati apply, are not even in the vicinity of how mainstream media negatively spins Tesla news. Even worse they also conveniently leave out all the incredibly positive stories. Teslarati helps balance things, even if things are still heavily skewed towards the ridiculously negative.
