Why is Tesla's logistics problem more complicated than other automakers?

According to foreign media reports, Elon Musk, CEO of Tesla, held a conference call with Tesla employees this week. In the meeting, he stressed that Tesla needs to speed up the delivery of cars to solve Tesla's logistics problems. To this end, he compared his factory with Amazon.

It is understood that Tesla is different from other car manufacturers in many ways. One of them is that Tesla owns and operates all its own stores and service centers, instead of doing business with third-party franchisees like most other automakers. This business model leads to several obvious differences, one of which is the least valued: Tesla owns and is responsible for all cars until the customer accepts the delivery.

However, this difference has brought Tesla more complicated logistics problems than other automakers, because other automakers only sell cars to dealers, and dealers have a large amount of inventory on their websites. For Tesla, its customized cars usually don't leave the factory before the delivery date is agreed with customers. At present, Tesla has spent a lot of time coordinating the delivery of customers and replenishing the inventory in the factory in fremont. Musk hopes that a steady stream of vehicles will arrive at their destinations and compare the logistics situation with Amazon.

Musk said, "If Amazon has to wait until the customer is ready to pick up the goods, then it will go bankrupt." On the other hand, this business model has also caused a financial problem, because Tesla has invested all its money in building cars and will not receive payment until the customer picks up the goods. If the car is manufactured but not delivered to consumers, Tesla will have a deficit of tens of thousands of dollars.

Therefore, Musk has always stressed that delivering cars to customers faster will greatly improve Tesla's financial situation. In the long run, the closer Tesla's production facilities are to customers, the shorter the transportation time will be, which is why Tesla has set up a factory in China. In addition, the company also claimed that it would open a factory in Europe.