Amid ongoing port restrictions and rising shipping costs, Tesla CEO Elon Musk urged employees on Friday, in an email, to look for ways to reduce the cost of delivery. electric cars to customers, rather than speeding up last-minute orders to meet quarter-end sales targets.
This comes after Tesla struggled to get its cars to customers in the US in line with agreed delivery dates, with some Tesla customers experiencing months of delivery delays, prompting them to rent cars until their cars arrived.
And Tesla wasn’t alone, as Rivian Automotive notified customers who booked the R1S, an SUV, of delivery delays. However, Tesla sales have grown this year.
Tesla reported deliveries of about 627,350 vehicles through the end of the third quarter, compared to about 500,000 vehicles in all of 2020.
Since the beginning of 2021, the company has not provided a clear target for vehicle deliveries for 2021.
In turn, the CEO of research firm JL Warren Capital, John Hong Lee, wrote in a note to investors last week that it expects Tesla sales to continue to rise, at least in China this quarter. He noted that “high fuel prices are benefiting all new brands of new energy vehicles.”
About 1.3 million electric cars were sold in China in 2020, according to Canalys research. The company expects the figure to rise to 1.9 million electric vehicle sales in China by the end of this year.
China remains the world’s largest market for new cars, with strong government support for the electric transition.