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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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BST Hyde Park’s final day cancelled as Jeff Lynne’s ELO pulls out of headline slot

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BST Hyde Park's final day cancelled as Jeff Lynne's ELO pulls out of headline slot

BST Hyde Park festival has cancelled its final night after Jeff Lynne’s Electric Light Orchestra pulled out of the headline slot.

Lynne, 77, was due to play alongside his band on Sunday but has been forced to withdraw from the event following a “systemic infection”.

The London show was supposed to be a “final goodbye” from ELO following their farewell US tour.

Organisers said on Saturday that Lynne was “heartbroken” at being unable to perform.

A statement read: “Jeff has been battling a systemic infection and is currently in the care of a team of doctors who have advised him that performing is simply not possible at this time nor will he be able to reschedule.

“The legacy of the band and his longtime fans are foremost in Jeff’s mind today – and while he is so sorry that he cannot perform, he knows that he must focus on his health and rehabilitation at this time.”

They later confirmed the whole of Sunday’s event would be cancelled.

“Ticket holders will be refunded and contacted directly by their ticket agent with further details,” another statement said.

Stevie Wonder played the festival on Saturday – now its final event of 2025.

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US rock band The Doobie Brothers and blues rock singer Steve Winwood were among those who had been due to perform to before ELO’s headline performance.

The cancellation comes after the band, best known for their hit Mr Blue Sky, pulled out of a performance due to take place at Manchester’s Co-Op Live Arena on Thursday.

ELO was formed in Birmingham in 1970 by Lynne, multi-instrumentalist Roy Wood and drummer Bev Bevan.

They first split in 1986, before frontman Lynne resurrected the band in 2014.

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Donald Trump threatens to revoke Rosie O’Donnell’s US citizenship

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Donald Trump threatens to revoke Rosie O'Donnell's US citizenship

Donald Trump has said he is considering “taking away” the US citizenship of actress and comedian Rosie O’Donnell, despite a Supreme Court ruling that expressly prohibits a government from doing so.

In a post on Truth Social on Saturday, the US president said: “Because of the fact that Rosie O’Donnell is not in the best interests of our Great Country, I am giving serious consideration to taking away her Citizenship.”

He also labelled O’Donnell, who has moved to Ireland, as a “threat to humanity” and said she should “remain in the wonderful country of Ireland, if they want her”.

O’Donnell responded on Instagram by posting a photograph of Mr Trump with Jeffrey Epstein.

“You are everything that is wrong with America and I’m everything you hate about what’s still right with it,” she wrote in the caption.

“I’m not yours to silence. I never was.”

Rosie O'Donnell arrives at the ELLE Women in Hollywood celebration on Tuesday, Nov. 19, 2024, in Los Angeles. (Photo by Jordan Strauss/Invision/AP)
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Rosie O’Donnell moved to Ireland after Donald Trump secured a second term. Pic: AP

O’Donnell moved to Ireland with her 12-year-old son in January after Mr Trump had secured a second term.

She has said she’s in the process of obtaining Irish citizenship based on family lineage and that she would only return to the US “when it is safe for all citizens to have equal rights there in America”.

O’Donnell and the US president have criticised each other publicly for years, in an often-bitter back-and-forth that predates Mr Trump’s move into politics.

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Will Trump address parliament on UK state visit?

This is just the latest threat by the president to revoke the citizenship of someone he has disagreed with, most recently his former ally Elon Musk.

But the two situations are different as while Musk was born in South Africa, O’Donnell was born in the US and has a constitutional right to American citizenship.

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Amanda Frost, a law professor at the University of Virginia School of Law, said the Supreme Court ruled in a 1967 case that the fourteenth amendment of the constitution prevents the government from taking away citizenship.

“The president has no authority to take away the citizenship of a native-born US citizen,” he added.

“In short, we are nation founded on the principle that the people choose the government; the government cannot choose the people.”

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The Salt Path author Raynor Winn’s fourth book delayed

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The Salt Path author Raynor Winn's fourth book delayed

The Salt Path author Raynor Winn’s fourth book has been delayed by her publisher.

It comes amid claims that the author lied about her story in her hit first book. Winn previously described the claims as “highly misleading” and called suggestions that her husband had Moth made up his illness “utterly vile”.

In a statement, Penguin Michael Joseph, said it had delayed the publication of Winn’s latest book On Winter Hill – which had been set for release 23 October.

The publisher said the decision had been made in light of “recent events, in particular intrusive conjecture around Moth’s health”, which it said had caused “considerable distress” to the author and her family.

“It is our priority to support the author at this time,” the publisher said.

“With this in mind, Penguin Michael Joseph, together with the author, has made the decision to delay the publication of On Winter Hill from this October.”

A new release date will be announced in due course, the publisher added.

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Winn’s first book, released in 2018, detailed the journey she and husband took along the South West Coast Path – familiarly known as The Salt Path – after they lost their family farm and Moth received a terminal health diagnosis of Corticobasal Degeneration (CBD).

But a report in The Observer disputed key aspects of the 2018 “true” story – which was recently turned into a film starring Jason Isaacs and Gillian Anderson.

Pic: Steve Tanner/Black Bear
Image:
Raynor and husband Moth (centre) with actors Jason Isaacs (L) and Gillian Anderson (R). Pic: Steve Tanner/Black Bear

Experts ‘sceptical of health claims’

As part of the article, published last weekend, The Observer claimed to have spoken to experts who were “sceptical” about elements of Moth’s terminal diagnosis, such as a “lack of acute symptoms and his apparent ability to reverse them”.

In the ensuing controversy, PSPA, a charity that supports people with CBD, cut ties with the couple.

The Observer article also claimed the portrayal of a failed investment in a friend’s business wasn’t true, but said the couple – whose names are Sally and Tim Walker – lost their home after Raynor Winn embezzled money from her employer and had to borrow to pay it back and avoid police action.

Pic: Steve Tanner/Black Bear
Image:
Anderson played Winn in a movie about the couple’s journey. Pic: Steve Tanner/Black Bear

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It also said that, rather than being homeless, the couple had owned a house in France since 2007.

Winn’s statement said the dispute with her employer wasn’t the reason the couple lost their home – but admitted she may have made “mistakes” while in the job.

“For me it was a pressured time,” she wrote. “It was also a time when mistakes were being made in the business. Any mistakes I made during the years in that office, I deeply regret, and I am truly sorry.”

She admitted being questioned by police but said she wasn’t charged.

The author also said accusations that Moth lied about having CBD/CBS were false and had “emotionally devastated” him.

“I have charted Moth’s condition with such a level of honesty, that this is the most unbearable of the allegations,” Winn wrote on her website.

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