Musk said that Amazon would go bankrupt if it delivered like Tesla
Elon Musk Wants Amazon-Inspired Delivery at Tesla
Tesla CEO, Elon Musk earlier this week praised the internet giant Amazon for its delivery system and dared Tesla to emulate it. Musk was speaking at a meeting of Tesla employees and he emphasized the need to move the cars out of the Tesla factory as fast as possible.
Musk wants to ease the inventory that is sitting at the Tesla factory in Fremont, California and proposed reforms beginning with the next quarter. Musk suggested that Tesla will send custom-ordered vehicles to delivery centers and the customers could pick them at their own convenience.
Musk showed impatience with Tesla’s current delivery system and said, “Amazon would go bankrupt if they would have to wait for customers to be ready to take delivery before shipping.”
Tesla’s model is different from that of traditional automakers. Tesla owns all the stores, service and delivery centers and no third party franchises are allowed. It controls the entire process until the last mile of delivery. This, however, has brought challenges especially in the international delivery of its Model 3 Sedan.
The Tesla custom-ordered vehicles may not move from the factory until a delivery date is agreed upon with the customer. Delivering the vehicles much faster than Tesla is doing now, would boost the company’s finances. Having production centers close to customer bases will cut transit times. The Gigafactory 3 in China and the rumored upcoming car plant in Europe are locationally better cost savers.