Tesla is planning to open “Tesla Centers” across a number of major metro areas to streamline the delivery of its electric automobiles to meet demand and higher quarterly reports.
The report came from Electrek, where it says that the decision is mainly motivated by the realization that the electric car company is struggling to meet its customer demand in terms of being able to deliver its cars on time.
Notably, Tesla faced a lot of issues during the first three months of 2019. The carmaker was plagued by challenges transporting cars from its factory in Fremont, California, across the world as well as questions about waning customer demand.
In March, Elon Musk, the company founder, said that “given that [a lot happening in Q1], and we are taking a lot of one time charges, there are a lot of challenges getting cars to China and Europe, we do not expect to be profitable. We do think that profitability in Q2 is likely.”
Despite, Tesla announced a record-setting 92,000 deliveries around the world in its second quarter. However, the electric car company said that they could have performed better. There was an additional 7,400 in transit at the end of the second quarter. Tesla’s orders aren’t fully reflected in its delivery numbers until a buyer takes possession of the new car.
In other words, the demand was there, but Tesla had logistical problems and didn’t have enough cars in the right markets.
At the time, Tesla announced that they “made significant progress streamlining [their] global logistics and delivery operations at higher volumes, enabling cost efficiencies and improvements to our working capital position.”
Looking forward to next quarter’s deliveries, “orders generated during the quarter exceeded our deliveries; thus we are entering Q3 with an increase in our order backlog. We believe we are well-positioned to continue growing total production and deliveries in Q3.”
The company is “well-positioned to continue growing total production and deliveries” in the coming quarter. Tesla also received more new orders last quarter than the total number of deliveries it recorded. That could indicate that there’s still a strong demand for Tesla vehicles.
Now that the company is in a more stable position to make more changes, the automaker is taking steps to improve its delivery time and flow of vehicles. According to the same report, Tesla is planning to implement a similar delivery outline to Amazon.
The ‘Tesla Centers’ will become great new locations that will operate sales, service, and delivery seven days a week. This move will be able to not only have cars readily available by dividing them throughout significant metro areas, but Tesla will also be able to make deliveries every day.
Once established, Tesla will be able to have more deliveries overall, larger performance numbers, and all at a speed to meet rising demand.
Furthermore, it will also be a loophole to traditional “Blue laws” where some states prohibit car dealerships from operating on Sundays.