In times of a pandemic, Tesla faces strong criticism about the delivery time of orders to consumers. Elon Musk’s company has faced recurring problems with deadlines since the beginning of the year, leading the CEO to admit: “punctuality is not my forte, but I always complete the plans”.
The problem starts with transparency for deadlines. When stipulated, CEO Elon Musk sets out his schedule for his investors – including employees and suppliers. At first, the strategy worked and Tesla Model Y models manufactured at the Shanghai unit shocked critics for their agility.
However, stability accommodated the company as a whole – even the CEO himself. Leading him to highlight his weakness with deadlines during meetings related to the commercial report of the first months of 2020. EVANNEX, one of the manufacturers of accessories for Tesla vehicles, tries to explain the reason for the delays with the help of analysts.
Gene Munster, then, complements the manufacturer’s opinion with his conclusion: the responsible for the delays is the transparency of the schedules. In this respect, Tesla is peculiar.
“Most companies have the luxury of sending different messages to each audience – investors, suppliers, employees and customers. As a comparison, most other companies do not need to carefully balance groups for three reasons: first, they may have parts supplied by multiple suppliers; second, they have a larger product catalog; third, they (may) be in a more favorable financial position. ”, explains the analyst.
Munster recalls the situation of launching the Tesla Model 3. The analyst claims that the company pressures suppliers to receive the parts to achieve goals set by the CEO.
“If the company reveals to suppliers that they need parts to produce 5,000 units of the Tesla Model 3 a week at the end of June, but tells investors that they can expect 5,000 units at the end of September, that gives room for suppliers to ease the production. ”, he explains.
In addition, Tesla’s entire production chain is extremely dependent, that is, if any of the suppliers misses the deadline, the entire production chain is impacted by this. “Production will move as fast as consistent production across Tesla’s entire production line,” said Elon Musk in an internal statement.
The same phenomenon occurs with company employees. While Elon Musk keeps his objectives clear, company employees feel that they can postpone the completion of the units if they have a comfortable deadline.
Finally, the most serious of the problems: customers are notified by email of the delivery dates, this same message is also viewed by suppliers, employees and investors. If any of these important sections notice a loophole, they will feel comfortable and push the manufacturing deadline for the units. The emergence of the pandemic, therefore, only exacerbates the current problems.