Tesla to Hand Deliver Model 3's to Increase Sales Before the End of Q3

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【Summary】Electric carmaker Tesla has launched a service called ‘Tesla Direct’, which is a door-to-door direct delivery service in California. The service will help Model 3 buyers get their cars faster, rather than having to wait to pick it up at a local Tesla delivery center.

Eric Walz    Sep 24, 2018 12:12 PM PT
 Tesla to Hand Deliver Model 3's to Increase Sales Before the End of Q3

Without an extended network of established dealerships and a limited number of delivery centers, electric automaker Tesla faces challenges in getting the popular new Model 3 to its customers in a timely manner, so the automaker launched a new service to hand deliver the cars.

The electric carmaker launched a service called ‘Tesla Direct', which is a door-to-door direct delivery service in California that was free for customers over the past weekend, and will likely be extended into next week. The service will help Model 3 buyers get the cars faster, rather than having to wait to pick it up at a local Tesla delivery center.

As first reported by Electrek, Model 3 reservation holders in the Los Angeles metro area said that Tesla's local delivery manager, Jeremy Pomp, reached out to them via email.

In his email to Tesla customers, Pomp wrote "I am helping hand deliver your Tesla Model 3 in the LA Metro area. This door-to-door service is called Tesla Direct. This Saturday and Sunday we are offering free Tesla Direct service to your home or office. This is an exciting opportunity to get your hands on your car sooner and without having to go pick it up. A Tesla Customer Experience Professional will drive your car to your home or office."

Pomp added that the delivery service is available on a "first come, first serve basis."

Tesla Rushing to Fulfill Deliveries by the End of Q3

While delivering the cars directly a customer's home or office makes it more convenient for customers waiting for their cars, it is also a way for Tesla to speed up deliveries and increase its Model 3 sales numbers and deliveries before the end of Q3 on September 30.

Tesla finally hit its production numbers of 5,000 Model 3's per week this past summer and it seems as though its deliver process is lagging behind, unable to keep up with Tesla's assembly line output. Elon Musk said Tesla was experiencing ‘ delivery logistics hell' as it tries to deliver all of the new Model 3's rolling off the assembly line at its Fremont, California factory.


A parking lot full of Model 3's await delivery near Richmond, California. Photo by REUTERS/Stephen Lam

Tesla is even turning to its current Model 3 owners for assistance, asking them to educate new Model 3 customers by providing an overview of the features and functions of the car.

After an owner suggested on social media that he would volunteer and assist Tesla with deliveries, CEO Elon Musk accepted the offer and gave instructions on how owners can help.

In a tweet, Musk wrote, "Wow, thanks for offering to help! The coming week is incredibly intense. If any current Tesla owners who'd like to help educate new owners could head to Tesla delivery centers during midday on Sat/Sun & morning/evening on weekdays, that would be super appreciated!"

As Q3 is winding down, Musk is hoping that Tesla Direct will encourage consumers to purchase Model 3s as soon as possible in order to take advantage of the convenient delivery option.

Tesla began production of the Model 3, its first mass-market car, in July 2017. The company began taking $1,000 reservation deposits in March of 2016 for the new electric car. Since production began, then Tesla has struggled to ramp up production.

According to Bloomberg's Tesla Tracker, which tracks Model 3 output by analyzing vehicle registration data, government resources and speaking directly with Tesla customers, Tesla is building on average 3,104 Model 3's per week, well short of its goal of over 5,000 to 6,000 vehicles each week.

The Model 3 is key to Tesla increasing its profitability and Tesla's share price is down nearly 30 percent since early August. With that being said, anything Tesla can do to help its customers get behind the wheel of the new Model 3 more quickly may help its bottom line, as Q3 draws to a close.

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