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Elon Musk stayed true to his word and told Tesla employees not to worry as much about delivering as many cars as possible during this end-of-quarter delivery wave and instead focus on cost.

It’s a significant change to what has been Tesla’s strategy for years.

Tesla has been known to have intense end-of-quarter, and this time end-of-year, delivery pushes due to its distribution system, which is very different from other automakers that use third-party dealerships.

Since Tesla sells directly to customers, the automaker owns the vehicle until it is fully delivered to the buyer and paid for.

It results in transit times being extremely important for Tesla financially since the automaker takes on the cost of building those cars and doesn’t get any money until the customers can actually pick them up.

Therefore, when Tesla has a lot of vehicles in transit at the end of a quarter, the quarter looks bad for them financially.

It’s why Tesla tries to build vehicles for exportations at its Fremont factory and Gigafactory Shanghai early in the quarter and vehicles for local deliveries later in order to allow for transit time by the end of the quarter.

However, this strategy results in Tesla’s sales and delivery team having to handle significant volumes of vehicles to deliver toward the end of each quarter, which are called “delivery waves” or “delivery pushes.”

This both increases costs as Tesla does everything logically to get the cars to customers and negatively affects the delivery experience for the customers who are often rushed to take delivery.

Last quarter, we reported that Musk told Tesla employees that  “‘this is the craziest month of deliveries Tesla (TSLA) will ever have.”

The CEO indicated that Tesla will aim to reduce those delivery waves in future quarters and even said that Tesla could let more deliveries slip into next year.

We noted that this remains to be seen since years ago Musk told something similar to employees, but the pressure from the market to look good on a quarterly basis led to no change happening.

Now Musk stays true to his word as he sent a new email to Tesla employees late on Friday telling them to prioritize cost-efficiency of deliveries over cramming as many deliveries as possible at the end of the quarter:

“We will still have quite a big wave of deliveries in the last few weeks of December, as we don’t yet have high volume production either in Europe or Texas, which means a lot of cars on boats from China to Europe and on trucks [and/or] rail from California to the East Coast arriving late in the quarter, but this is nonetheless the right time to start reducing the size of the wave in favor of a steadier and more efficient pace of deliveries.”

The CEO told employees to act “as though Tesla was not publicly-traded and the notion of ‘end of the quarter’ didn’t exist.”

While the execution could be different, this is a clear message from the CEO to Tesla employees telling them that the delivery wave is not as critical as it once was.

Here’s the full email via CNBC:

From: Elon Musk

To: Everybody

Subj. Q4 deliveries vs. cost efficiency

Date: Nov. 26, 2021 [time stamp redacted]

Per my email several weeks ago, our focus this quarter should be on minimizing cost of deliveries rather than spending heavily on expedite fees, overtime and temporary contractors just so that cars arrive in Q4.

What has happened historically is that we sprint like crazy at end of quarter to maximize deliveries, but then deliveries drop massively in the first few weeks of the next quarter. In effect, looked at over a six month period, we won’t have delivered any extra cars but we will have spent a lot of money and burned ourselves out to accelerate deliveries in the last two weeks of each quarter. 

We will still have quite a big wave of deliveries in the last few weeks of December, as we don’t yet have high volume production either in Europe or Texas, which means a lot of cars on boats from China to Europe and on trucks [and/or] rail from California to the East Coast arriving late in the quarter, but this is nonetheless the right time to start reducing the size of the wave in favor of a steadier and more efficient pace of deliveries.

The right principle is take the most efficient action, as though we were not publicly-traded and the notion of “end of quarter” didn’t exist. 

Thanks,
Elon


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Los Angeles fires: Hanks, Affleck, Witherspoon and Star Wars legend among stars evacuated as fires spread

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Los Angeles fires: Hanks, Affleck, Witherspoon and Star Wars legend among stars evacuated as fires spread

Hollywood celebrities are among thousands of people to have been evacuated from their homes as fires rip through areas of Los Angeles.

Sky News’ US correspondent Martha Kelner reported that Tom Hanks, Ben Affleck and Reese Witherspoon were all evacuated on Tuesday as wildfires continued to spread in the Pacific Palisades suburb of LA.

The blaze spreading there is one of four raging in California.

Follow latest: At least two killed as flames spread

The US flag flies as flames from the Palisades Fire engulf a structure during a windstorm on the west of Los Angeles. Pic: Reuters
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The US flag flies as flames from the Palisades Fire engulf a structure during a windstorm on the west of Los Angeles. Pic: Reuters

A wildfire-ravaged property in the Pacific Palisades neighbourhood of Los Angeles. Pic: AP
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A wildfire-ravaged property in the Pacific Palisades neighbourhood of Los Angeles. Pic: AP

The area, which is home to billionaires as well as Hollywood A-listers, is located between Santa Monica and Malibu.

Other celebrities who have fled their homes include the award-winning actor James Woods, who said last night he had been safely evacuated from his home in Pacific Palisades.

But he added in a post on X: “I do not know at this moment if our home is still standing.”

Actor Mark Hamill, best known for playing Luke Skywalker in the Star Wars films, also posted on social media last night saying he evacuated his home in Malibu and his family were “fleeing for our lives”.

This Is Us actress Mandy Moore was also forced to leave her home due to the fires.

She said in two Instagram stories she had fled the Eaton fire, which is raging near Altadena, with her children, cats and dog. They have found temporary refuge with friends.

The actress said: “Trying to shield the kids from the immense sadness and worry I feel.

“Praying for everyone in our beautiful city. So gutted for the destruction and loss. Don’t know if our place made it.”

Mark Hamill and Mandy Moore. File Pics: Reuters
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Mark Hamill and Mandy Moore fled their homes. File Pics: Reuters

Ben Affleck Reese Witherspoon Tom Hanks
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Tom Hanks, Reese Witherspoon and Ben Affleck were all evacuated from their homes. Pics: AP

According to Velvet Ropes, which maps celebrity properties, Tom Hanks and Rita Wilson, Matt Damon, Steven Spielberg, Hilary Swank and Sally Field all have homes close to where fires are raging.

Dr Dre, Adam Brody and Leighton Meester, Tyra Banks, Martin Short, Anna Faris, Milo Ventimiglia, Linda Cardellini, Mary McDonnell, Adam Sandler, Miles Teller, and Jennifer Love Hewitt are also said to have houses in affected areas.

The Palisades Fire burns a Christmas tree inside a residence in the Pacific Palisades neighborhood. Pic: AP
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The Palisades Fire burns a Christmas tree inside a residence in the Pacific Palisades neighborhood. Pic: AP

The skyline of Los Angeles covered with smoke due to wildfires raging in the area. Pic: Reuters
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The skyline of Los Angeles covered with smoke due to wildfires raging in the area. Pic: Reuters

In neighbouring Malibu, which was also affected by fires in December, stars including Beyonce and Jay-Z, Kim Kardashian, Lady Gaga and Billie Eilish are said to be among the celebrity residents.

The Palisades blaze has already burnt through more than 11,000 acres of land while the Eaton one has caused the death of two people, Los Angeles County fire chief Anthony Marrone said on Wednesday.

The two other fires are known as Woodley and Hurst, after the main areas affected.

All four blazes are still growing, Mr Marrone said.

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Star of The Hills and Made In Chelsea says family’s homes have burnt down in LA wildfires

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Star of The Hills and Made In Chelsea says family's homes have burnt down in LA wildfires

A reality TV personality known for appearing on shows like The Hills and Made In Chelsea has told Sky News her family have lost their homes in the California wildfires.

Stephanie Pratt, a model and the sister of fellow reality TV celebrity Spencer Pratt, lives in the Pacific Palisades in Los Angeles, where more than 30,000 people have fled their homes due to the fast-moving blaze.

Los Angeles fire chief Anthony Marrone said on Wednesday that the Palisades fire is still growing and that “well over 5,000 acres” have been burnt.

At least two people have been killed so far, with around 1,000 buildings destroyed.

Follow latest: Two killed in LA wildfires

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House surrounded by flames during wildfire

A firefighter shields their face as the Palisades Fire burns down a home in Los Angeles. Pic: AP
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The flames burning down a home in Los Angeles. Pic: AP

The Palisades Fire burns a residence in the Pacific Palisades neighborhood of Los Angeles, Tuesday, Jan. 7, 2025. (AP Photo/Ethan Swope)
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Some of the damage after the wildfire. Pic: AP

California governor Gavin Newsom earlier declared a state of emergency over the four wildfires in the south of the state.

Speaking to Sky News from London, an emotional Ms Pratt said: “It’s just so crazy, I had no idea what was happening.

“I talked to my dad yesterday and he said ‘The Palisades is burning’. He said that he was at my brother’s house on Chautauqua [Boulevard] and they were just watching the flames come.

“The firefighters came and said you got to leave.”

Former Made in Chelsea star Stephanie Pratt on her brother who has lost his home in the wildfires.
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Former Made In Chelsea star Stephanie Pratt speaking to Sky News

Map showing wildfires in California.
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Map showing wildfires in California.

‘I don’t know if my house is there’

Ms Pratt said her parents and brother Spencer, who like her starred in the reality series The Hills, were safely evacuated from the area.

However, the 38-year-old added that “all of the phones are disconnected” and that she doesn’t know what had happened to her home.

“I talked to my neighbour last night and she told me that [Palisades Charter High School] had burnt down, and that’s directly behind me, and so had Gelson’s Supermarket which is adjacent,” she said.

“I just can’t reach anyone to see if my house is okay. I just Googled it and it said that it’s destroyed and terrible… I don’t know if my house is there.”

Read more:
Terrifying firestorm tears through film stars’ homes
Why are there wildfires in January?

Reality TV personality Stephanie Pratt in 2010. Pic: Reuters
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Reality TV personality Stephanie Pratt in 2010. Pic: Reuters

‘This is where they raised their kids’

When she asked her dad about Spencer, 41, who is married to 38-year-old Heidi Montag – another co-star of The Hills – Ms Pratt said he told her “I’ve never seen him like this”.

“I’m assuming he’s just completely catatonic,” she added. “We don’t care about the material things or anything like that, but this was their family home.

“This is where they raised their two little kids.”

Spencer Pratt and Heidi Montag at the MTV Video Music Awards in 2008. Pic: Reuters
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Spencer Pratt and Heidi Montag at the MTV Video Music Awards in 2008. Pic: Reuters

The Palisades fire is one of five blazes currently burning in southern California – evacuation orders were in place on Tuesday in Altadena after another fire, called the Eaton fire, started near a nature preserve.

A third blaze, called the Hurst fire, also ripped through Sylmar in the north of the city.

And according to the state department Cal Fire, two more blazes – the Woodley fire in Los Angeles and Tyler fire in Riverside – broke out on Wednesday.

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School Of Rock wedding: Co-stars marry decades after first meeting on set of film

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School Of Rock wedding: Co-stars marry decades after first meeting on set of film

Two School Of Rock co-stars, who met at the age of 10, have got married.

Caitlin Hale and Angelo Massagli, who played Marta and Frankie respectively in the 2003 classic alongside Jack Black, tied the knot in New York on Saturday.

The couple brought some of the original cast of the film, which centres on a pretend substitute teacher turning a group of musically gifted school children into a rock band, together to celebrate their nuptials.

Posting on Instagram, Hale, 33, shared various images of the day, including a photobooth picture with a handful of their former cast mates.

The former actress, who now works as a sonographer, wrote under the post: “Special thank you to everyone who contributed to an unforgettable day!”

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Andrew Schwartz/Paramount/Scott Rudin Prods/Mfp/New Century/Sor Prods/Kobal/Shutterstock

School Of Rock - 2003
Maryam Hussan, Cuitlin Hale, Jack Black

2003
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Caitlin Hale (middle) with Maryam Hussan and Jack Black. Pic: Andrew Schwartz/Paramount/Scott Rudin Prods/Mfp/New Century/Sor Prods/Kobal/Shutterstock

Rivkah Reyes, who played bass player Katie in the film, also posted about the wedding, sharing a video on TikTok.

The clip, set to Stevie Nicks’s Edge Of Seventeen, included cameos from Brian Falduto, who played Billy, Joey Gaydos Jr, who played Zack, and Aleisha Allen, who played Alicia, among others.

The use of the song was a nod to one of the scenes from the film where Black and Joan Cusack, who plays headteacher Rosalie Mullins, sing the song in a bar.

“Celebrating the marriage of Caitlin & Angelo with my forever fam #schoolofrock #wedding,” Reyes wrote alongside the video, which showed them all dancing together.

After appearing together in the film the only contact Hale and Massagli had was through a WhatsApp chat set up with the entire cast, according to The New York Times.

The pair then both left show business and coincidentally reconnected while studying in schools in Florida.

Massagli, 32, who now works as a lawyer for TikTok, according to The Times, told the paper the familiarity they both had due to working together when they were younger “cut through some of those early relationship hurdles”.

The couple got engaged in June 2023.

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