Elon Musk reportedly suggested that Tesla needs to be more like Amazon to improve its delivery system

Tesla CEO Elon Musk reportedly compared the electric-car maker to Amazon on a call with employees last week.

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Tesla CEO Elon Musk reportedly compared the electric-car maker to Amazon on a call with employees last week.
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Joe Skipper/Reuters

  • Tesla will make a change to its delivery system next quarter designed to reduce the number of vehicles sitting at its Fremont, California, factory, Electrek‘s Fred Lambert reported.
  • According to the Electrek, Tesla will immediately send custom-ordered vehicles to local delivery hubs, instead of keeping them at the Fremont factory until the customer schedules a delivery date.
  • Tesla CEO Elon Musk reportedly compared the electric-car maker to Amazon on a call with employees last week, suggesting the online retailer would not survive if it used a delivery system similar to the one Tesla uses for custom-ordered vehicles.
  • Improving delivery logistics has been an area of emphasis for Tesla this year.
  • Visit Business Insider’s homepage for more stories.

Tesla will make a change to its delivery system next quarter designed to reduce the number of vehicles sitting at its Fremont, California, factory, Electrek‘s Fred Lambert reported.

According to Electrek, Tesla will immediately send custom-ordered vehicles to local delivery hubs, instead of keeping them at the Fremont factory until the customer schedules a delivery date.

Read more: With Tesla’s Elon Musk and Rivian’s RJ Scaringe, we have the Henry Ford and Alfred Sloan of electric vehicles

Tesla CEO Elon Musk reportedly compared the electric-car maker to Amazon on a call with employees last week, suggesting the online retailer would not survive if it used a delivery system similar to the one Tesla uses for custom-ordered vehicles.

“Amazon would go bankrupt if they would have to wait for customers to be ready to take delivery before shipping,” Musk said on the call, according to Electrek’s report.

Read more: Apply here to attend IGNITION: Transportation, an event focused on the future of transportation, in San Francisco on October 22.

Tesla did not immediately respond to Business Insider’s request for comment.

Improving delivery logistics has been an area of emphasis for Tesla this year. The company cited the difficulties of beginning international deliveries of its Model 3 sedan as a challenge it faced during the first quarter, but Musk said Tesla made rapid improvements to its international delivery system after it set a record for vehicle deliveries during the second quarter.

Read Electrek’s full story here.

Are you a current or former Tesla employee? Do you have an opinion about what it’s like to work there? Contact this reporter at mmatousek@businessinsider.com.