Tesla Racing Against Time To Meet Demand

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Customers are also being tempted by a new offer.

Tesla has what CEO Elon Musk describes as a "high-class problem" right now. It's a nice position to be in but also includes increased pressure and deadlines. With just over two weeks of 2020 remaining, Tesla is racing against the clock to meet demand. It must increase production immediately and quickly. A leaked email from Musk to Tesla employees and obtained by Electrek reveals what's currently at stake.

"We are fortunate to have a high-class problem of demand being quite a bit higher than production this quarter." Musk wrote. "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 this quarter as much as possible."

2017-2021 Tesla Model 3 Front View Driving Tesla
2017-2021 Tesla Model 3 Side View Driving Tesla
2017-2021 Tesla Model 3 Side View Tesla

Musk went so far as to request for employees who have new ideas on how to improve production to contact him directly. This production push is primarily for the Tesla Model 3 and Model Y because, as we just reported, Model S and Model X production will shut down for 18 days beginning December 24. No exact reason is known but it's possible this is being done in order to re-tool those assembly lines for the long-rumored major facelift for both vehicles.

This end-of-year goal is aiming for a record 500,000 deliveries in 2020. Tesla still needs to deliver over 181,000 vehicles to achieve this. To compare, this Q4 2020 goal is 40,000 vehicles more than its previous quarterly record.

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One of the possible reasons demand is so high could be because Tesla is now offering one year of free Supercharging.

This new incentive for North America is specifically for undelivered Model 3 and Model Ys. Essentially, Tesla is trying to incentivize buyers to take delivery by the end of the month/year. Because Tesla owns its own dealer network, much to the chagrin of franchised auto dealers and their powerful lobbyists, revenue can't officially be recognized until vehicles are delivered to customers. Hopefully, this incentive will push them to get things sorted and Tesla will meet its delivery and production goals. It could be a win-win situation.

2017-2021 Tesla Model S Top View Tesla
2017-2021 Tesla Model S Rear View Driving Tesla
2020 Tesla Model Y Front View Tesla
2016-2020 Tesla Model X Front View Driving Tesla
Source Credits: Electrek

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2020 Tesla Model Y Front View
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