As 2020 draws to a close, the billionaire Elon Musk (Elon Musk), CEO of Tesla (Tesla Inc.), is making a final sprint for the "delivery target of 500000 vehicles." On December 30, local time, he announced an unprecedented year-end incentive on Twitter to boost sales.
Mr Musk said Tesla would give away a three-month fully self-driving (FSD) subscription service for free to car buyers, but the delivery and documents must be completed by midnight on December 31st.
The FSD service is an evolutionary version of Tesla's autopilot function, which can achieve fully autopilot advanced functions such as automatic parking and automatic lane change, and is expected to be launched early next year. The feature needs to be purchased for an additional price of up to $10, 000.
As Tesla is a self-built marketing channel, so order acquisition and vehicle delivery are completed by the company itself, corresponding to order volume and delivery volume respectively. Then when the production capacity is abundant but the car owner is not urgent to pick up the car, there may be a backlog of inventory, which will eventually affect the company's current delivery volume and revenue recognition.
In recent years, Tesla has often offered a number of incentives to boost sales before the end of the season. For example, Tesla authorized salespeople in North America to provide free unlimited supercharging for undelivered Model 3 and Model Y vehicles (excluding the Model 3 standard version) for a year. However, incentives like this quarter are unprecedented. Musk's determination to meet his delivery target of 500000 vehicles is a sign of this.
It is understood that in order to reach the milestone target, Tesla should deliver 181000 vehicles this quarter, which is more than 40, 000 higher than the delivery record of the previous quarter, and the last quarter only barely reached the "passing line."
However, Mr Musk confidently told employees in an email over the weekend that the company could still meet its milestone target of delivering 500000 electric vehicles in 2020, but that it needed to "go all out".
