Why Elon Musk is tweeting about more trucks at Tesla

Posted on

Musk said in September that Tesla had moved from "production hell" to "liberation hell". Photo credit: BLOOMBERG

SAN FRANCISCO – Elon Musk is apparently mapping what he calls "delivery logistics hell" by making acquisitions and contracting more car libraries.

The CEO of Tesla Inc. on Thursday that Model 3s ordered in the US will be delivered by the end of the month before the end of the year. He wrote that the use of trucks instead of rails shaves more than a month from the time needed to bring cars to the east coast.

When asked to explain how Tesla provided more capacity, Musk said that the company did some acquisitions of truck companies without being specific.

Musk, 47, repeatedly tweeted in September about how Tesla had problems getting Model 3s to customers without problems. On September 24, he wrote that the company had gone so far as to build some of its own car carriers.

A Tesla spokesman declined to comment when asked which truck companies the electric-car manufacturer bought or arranged contracts with. Guy Young, the general manager of the Auto Haulers Association of America, said he had never heard of acquisitions involving Tesla.

"There is currently a capacity shortage, because so many companies are preparing for Black Friday and the holidays," Young said by telephone. "There are many things that now have to run on trucks."

More deliveries

Musk also said that model 3s ordered in the United States by the end of this month will be delivered by December 31, if the electric car manufacturer tries to take advantage of tax breaks.

  Tesla, Elon Musk report 'historic' $312 million Q3 profit

"Tesla has just acquired truck capacity to ensure that Model 3 can be delivered in the US by 31 December, if ordered on November 30," Musk has tweeted.

"I think it's a good move, we need a bit more detail to know what kind of capacity this will bring, but having these trucks on the road will help with the order momentum," said Roth Capital Partners analyst Craig Irwin.

Tesla had previously said that the orders placed before October 15 are delivered by the end of the year.

The electric car manufacturer has until the end of the year to distribute tax credits of $ 7,500 to customers.

The credits are available for six months after an automaker hit 200,000 delivery marks, which Tesla hit in July. The incentives then reduce by 50 percent every six months until it expands.

Tesla has promised a profit for the fourth quarter. The company said it had booked $ 189.5 million in regulatory credits for vehicles in the third quarter, contributing nearly half of its profits.

Reuters contributed to this report.