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Musk says Tesla now in 'delivery logistics hell'

Published 09/17/2018, 11:24 AM
Updated 09/17/2018, 11:24 AM
© Reuters. FILE PHOTO: Tesla Motors CEO Musk speaks during the National Governors Association Summer Meeting in Providence

© Reuters. FILE PHOTO: Tesla Motors CEO Musk speaks during the National Governors Association Summer Meeting in Providence

(Reuters) - The focus on Tesla Inc's (O:TSLA) battle to ramp up production swung to concerns over logistics and distribution on Monday, after Chief Executive Officer Elon Musk acknowledged there were delivery bottlenecks and promised to swiftly iron out the delays.

"Sorry, we've gone from production hell to delivery logistics hell, but this problem is far more tractable," Musk said in a tweet https://twitter.com/elonmusk/status/1041500594467270656 on Sunday, in response to a customer complaint on delivery delay.

"We're making rapid progress. Should be solved shortly."

The 47-year-old billionaire, who earlier this month faced investor ire over smoking marijuana on a live web show, has indicated in the past that Tesla's customers may face a longer response time because of a significant increase in vehicle delivery volume in North America.

Tesla's ability to deliver on production targets has weighed on its stock in the past, and the company has been working to iron out bumps after failing to meet production targets for its Model 3 sedans.

The company has eliminated some color options for its cars to streamline operations to ramp up production.

Musk also tweeted on Sunday that Tesla would bring most collision repairs in-house, saying owners were experiencing excessive wait times at body shops.

Separately, aspiring rival Lucid Motors announced a $1 billion investment on Monday from Saudi Arabian sovereign wealth fund PIF.

Earlier this year, PIF built a stake of just under 5 percent in Tesla by snapping up shares in the open market, rather than acquiring newly issued shares.

© Reuters. FILE PHOTO: Tesla Motors CEO Musk speaks during the National Governors Association Summer Meeting in Providence

Tesla's shares were down nearly 1 percent at $292.76.

Latest comments

Haha, mods are editing the word ******* even though its in the editorial.
"Musk says Tesla now in 'delivery logistics *******" Next, he will be in legal *******making a deal with Lou Cipher and Mr DeVille. Haha ;)
Its a Ponzei
"You mean I think of things and they dont just happen? Guess I'll go smoke a joint and.talk to my fan base." Take all that narcissistic 5hi7birds money and throw him in jail with the other crooks.
spell bankruptcy again
Translation: We had no plan.... Who knew "winging it" with billions of dollars could be so much fun!
translation: building a car company from the ground up on an entirely new platform of electricity rather combustion is difficult and yet we have a product that is desirable, the wave of the future and is bound to be rocky.
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