Elon Musk says Tesla's problems have now shifted to delivery logistics

Tesla in August said that it expects to build a total of up to 55,000 Model 3s in the third quarter.

Tesla Inc’s Chief Executive Officer Elon Musk on Sunday acknowledged that the electric carmaker’s problems have now shifted to delivery logistics from production delays, the latest speed bump in its efforts to achieve profitability.

“Sorry, we’ve gone from production hell to delivery logistics hell, but this problem is far more tractable. We’re making rapid progress. Should be solved shortly,” Musk said in a tweet in response to a customer complaint on delivery delay.

A man looks around Tesla Motors' Model S P85 at its showroom in Beijing. Image: Reuters

A man looks around Tesla Motors' Model S P85 at its showroom in Beijing. Image: Reuters

The 47-year-old billionaire who earlier this month faced investor ire over smoking marijuana on a live web show, has indicated in the past that Tesla’s customers may face a longer response time because of a significant increase in vehicle delivery volume in North America.

Tesla’s ability to deliver on production targets has weighed on its stock in the past, and the company has been working to iron out production bumps after failing to meet production targets for its Model 3 sedans.

The company said in August that it expects to build a total of up to 55,000 Model 3s in the third quarter.

Musk said last week the company would eliminate some color options for its electric cars to streamline production.




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