Industry Logistics Can't Adapt To Tesla Pace - Automaker Forced To Build Own Car Transports

Tesla Inc. is building its own car carriers, as the electric carmaker faces vehicle distribution problems.

The company is upgrading its logistics system but running into an "extreme" shortage of car carrier trailers, CEO Elon Musk tweeted on Monday in response to a customer who ordered a Model 3 in June but has yet to receive the car.

"Started building our own car carriers this weekend to alleviate load," Musk said.

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malba2367 - 9/25/2018 12:13:13 PM

+3 Boost

Teslas problem has always been on the operations side. Their product is excellent when they can execute it. This is just an other example. They can not be profitable using solutions like this (and their temporary production line). They have 3-4 years to show fiscal and operational discipline before others start eating their lunch. Hopefully they can do it...it would be nice to see an American car company at the top of the heap again.

EVisNow - 9/25/2018 12:55:51 PM

-1 Boost

Execution has always been the weak link for Tesla, and it is being tested at the limit. I do hope they pull through and have a better long term plan for prolonged operations. There is no doubt they make excellent products - and the short term problems will be fixed.

I am 2 days away from a home delivery of the Performance model. Things are in order and I can't wait any longer.

mre30 - 9/25/2018 3:12:05 PM

+3 Boost

NEWS FLASH - Tesla has so many employees in its Fremont, CA factory working their knuckles to the bone gluing together the Model 3's that they cannot buy enough corn for the employee cafeteria.

Here is the start of the press release...

TESLA TO PLANT FIELDS OF CORN AROUND THE TESLA GIGAFACTORY IN THE NEVADA DESERT TO GROWN CORN FOR HUNGRY EMPLOYEES. GROW CORN IN A DESERT? NO PROBLEM SAYS ELON MUSK!

TheSteve - 9/25/2018 4:28:03 PM

+3 Boost

Tesla's pace at what? Even while operating in the same factory was used by GM/Toyota in a joint venture, Tesla has more people and produces less cars, and can't even sell them at a profit.

Tesla has American mind-share and hype on their side. Aside from that, they're a bag of hurt. Expect to see more signs of cash flow starvation in the coming months.

MDarringer - 9/25/2018 6:16:32 PM

-1 Boost

The flood of BS continues.

rockreid - 9/25/2018 7:39:55 PM

+3 Boost

The shortage of car carriers has been an industry-wide problem all year long. Also train car carriers have also been sporadically available. Plenty of news articles and car industry publications confirming this are just a Google search away. Also look at Jeep delivery woes from online forums to see what I mean about carrier delivery shortages.