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The craziest week in Tesla history has begun as the company prepares to ship a record number of vehicles

SpaceX and Tesla CEO Elon Musk said in a new email to employees that this week will be Tesla’s craziest week ever in terms of the intensity and quantity of new vehicle shipments.

Tesla has the most active shipments at the end of the quarter due to its distribution system, which is very different from other automakers using third-party dealerships. Because Tesla sells directly to customers, the automaker owns the vehicle until it is fully delivered to the customer and paid for. This makes delivery times extremely important for Tesla from a financial standpoint, as the automaker bears the cost of building these vehicles and doesn’t receive any money until customers can pick them up. So when Tesla has a lot of vehicles on its way to its customers at the end of the quarter, the quarter looks bad financially.

The craziest week in Tesla history has begun as the company prepares to ship a record number of vehicles

This is why Tesla is trying to produce cars for export at its Fremont plant and Gigafactory Shanghai at the beginning of the quarter, and cars for local deliveries later to ensure 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 that need to be delivered by the end of each quarter in what are called “delivery waves” or “delivery shocks”.

The third quarter of fiscal 2021 ends this week, and Musk said the week will be the busiest in the company’s history. Earlier, the head of the company predicted that September will be the craziest month for Tesla.

Musk previously said that at the beginning of this quarter, Tesla assembled many vehicles that were not ready for a while due to supply chain problems. Parts were added later, leading to an increase in vehicle inventory towards the end of the quarter.

Musk hopes that the situation will return to normal in the next quarter.

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