Tesla pioneered most of the technology used in modern day EVs. Hence they have never had a problem with the demand for their products. Elon Musk, CEO and founder of the company, has repeatedly said that demand always exceeds supply for Tesla cars. Despite a difficult 2020, the company has noticed an unequivocal increase in demand. Moreover, Musk confirmed this increase himself.
Tesla Production Hell Again? Elon Musk Emailed Tesla Staff About High-Class Problem
Hence, he has emailed all employees of Tesla about the “high-class problem of demand” that currently exceeds production. Elon also asked everyone to make efforts to increase production in Q4.
“We are fortunate to have the high-class problem of demand being quite a bit higher than production this quarter.
To ensure that we have the best possible outcome and earn the trust of the customers and investors who have placed their faith and hard-earned money with us, we need to increase production for the remainder of the quarter as much as possible.
I would only send this note if it really mattered.
Btw, please send me a note directly if you see ways to improve output, but feel that your voice is not being heard.”
Tesla’s Commitment to their Plans
Tesla had set a target of 500,000 deliveries in 2020 and to fulfill it they will have to deliver 180,000 cars in Q4. Considering that Giga Shanghai has recently ramped up production, it shouldn’t be difficult to achieve this goal.
This email points to the commitment that Elon has to living up to the goal set for the year 2020. Despite a very challenging year for the whole world, this is a very commendable feat by Tesla. The company has been very popular among EV buyers and this further proves its status. Another email that Elon sent says that he wants Tesla to focus on profits or the stock will fall like a soufflé under a sledgehammer.
Similarities and Differences with Production Hell
When Tesla announced the $35,000 Model 3, they had set the goal of producing 5,000 cars every week. Till then Tesla produced 3 cars a day. The new, $1 Billion Gigafactory in Nevada was supposed to bear the brunt of this increase. However, all the automation in which Elon and Tesla had invested, wasn’t working up to the mark. This sparked a series of events which ended with Elon being sued for securities fraud. That case forced Elon to give up the chairmanship of the company. On top of that he paid a settlement worth $20 Million.
The stakes are equally high for this ambitious Q4 goal that he and Tesla have set. If they aren’t able to deliver on this promise, Elon will be in the spotlight for the wrong reasons again. But today Tesla are better equipped to deliver. They have Gigafactories setup in Nevada and China to aid the production. The rate of production in both factories can be increased significantly without overburdening any machines. And on top of that Tesla are now a smarter company that knows how to handle crises.
All this shows that Elon isn’t just focused on the customers, he also thinks about the investors. This kind of thinking has helped Tesla to become a major player in EV markets in a short time frame. While the quality issues in Tesla cars is becoming a small issue, such instances prove that they still deserve respect.
All this along with all of the exciting announcements at the Battery Day event is giving us more reasons to be awestruck by Elon and Tesla.