Tesla Inc. (NASDAQ:TSLA) CEO Elon Musk has indicated that the company is experiencing strong demand and wants the electric car maker to increase production to capitalize on the opportunity.
Musk asks employees to increase production to meet demand
The company had previously reported that it is in the middle of its end-of-year delivery drive with record deliveries in the quarter to attain 500,000 units this year. Tesla needs to deliver around 181,000 this quarter to hit that goal. This will be over 40,000 more units compared to the previous quarter’s deliveries.
According to an email from Musk to employees, the company is facing a high-class problem as it faces high demand relative to its production capacity. Musk said that the company needs to increase production quickly in this quarter for it to earn customers’ and investors’ trust. The email stated that to ensure the company has the best possible outcome and earn investors’ and customers’ trust they are an urgent need to increase production for the rest of the quarter as soon as possible.
The latest is the second such this month that Musk has wrote to employees regarding investors’ support after a huge surge in the company’s stock price. Musk wrote last week to employees informing them that the company should focus more on profits and cautions that tesla’s stock could drop like a “soufflé under a sledgehammer.” In the latest email, Musk said that if employees see a way of improving production they should contact him directly.
Tesla gearing for Model S design refresh
Despite the company targeting increased production capacity it has announced that it will shut down Model X and Model S production lines during the holiday season. The shutdowns are an indication of a potential design refresh to the Model S that the company brought first to the market in 2012. Over the years the electric sedan has updated slightly but design-wise has been unchanged since 2016. Although the design has changed much there are however several performance improvements the company has made to the Model S sedan over the years.