CEO warned last quarter of global chip shortage's effect on output.
Tesla Motors Inc. Chief Executive Elon Musk is urging employees to "go super hardcore" in the coming weeks in order to ensure a "decent" amount of vehicle deliveries this quarter, according to new reports.
Tesla $(TSLA)$ regularly faces quarterly delivery crunches, but this one appears worse than usual. Citing an internal email they obtained, Reuters and Electrek reported Thursday that Tesla is facing a more challenging "delivery wave" this quarter due to supply chain problems.
"The end of the quarter delivery wave is unusually high this time as we suffered (like the rest of the industry) from extremely severe parts shortages earlier this quarter. This meant building a lot of cars with missing parts that needed to be added later," Musk wrote, according to the reports.
"Early Q3 production was so challenging that we need to go super hardcore to make up for it over the next 22 days to ensure a decent Q3 delivery number," he added. "This is the biggest wave in Tesla history, but we got to get it done."
In July, Tesla reported it topped $1 billion in quarterly revenue for the first time, and delivered more than 200,000 vehicles in the second quarter. But Musk at the time warned that the global chip shortage "remains quite serious," adding that "the chip supply is fundamentally the governing factor on our output."
Tesla shares have rallied 24% over the past three months, but are up just 7% year to date. The S&P 500 , meanwhile, is up 6% over the past three months and nearly 20% for the year.
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