Elon Musk said Tesla was experiencing ' delivery logistics hell' as it tries to deliver all of the new Model 3's rolling off the assembly line at its Fremont, California factory. He has been under intense pressure to prove he can deliver consistent production numbers for the Model 3 sedan, which is seen crucial to Tesla's plan to become a mass-market automaker.
A follower of Musk in the aforementioned social media platform had inquired earlier about his order of a Model 3 All Wheel Drive (AWD) which he reportedly placed back in June.
According to Electrek, Tesla is now gaining steam on its production status with over 4,000 Model 3's being made for a week.
It is a radical solution, but the company needs one because some customers are exhausted of the wait for their Model 3 cars. This was after Elon Musk came forward asking for volunteers to help deliver the cars to their customers.
In a tweet, Musk wrote, "Wow, thanks for offering to help!"
In the same conversation, Musk mentioned Tesla's economy of scale wherein the company is very much limited in its resources to produce, sell, and deliver its goods. Some stores have more Model 3s on their lot than they can accommodate as the cars wait for their new owners to arrive.
In July, Tesla said net Model 3 reservations at the end of the second quarter were roughly 420 000.
Auto carriers are nearly certainly not cheap to build since they are large trucks with special storage meant to move cars from a factory to dealers or other locations. Since production began, then Tesla has struggled to ramp up production.
The Model 3 is key to Tesla increasing its profitability and Tesla's share price is down almost 30 percent since early August. The tweet results in the soaring the stock by around 11% on the same day, as said Musk, "I am trying to achieve the results where the company can operate at its best and does not have to worry about any short-term thinking and distraction".