Tesla CEO Elon Musk has suggested his company may seek to stop taking orders for certain models to combat long lead times.
Speaking at the Financial Times summit on the future of the car, Musk laid bare the drastic impact of continued parts supply restrictions on Tesla’s ability to produce cars to meet demand.
“I’m confident we’ll be able to sell all the cars we can make. Right now the time to order a Tesla is ridiculously long,” he said. “Our problem is not demand, it’s production.”
He added: “We will probably stop taking orders beyond a certain period. Part of the delay is about a year. ?
“I don’t think about lead generation and a lot about production and supply chain.”
Musk is one of many automaker CEOs to express frustration over extended lead times in recent months, as the supply of critical components for auto production continues to be strangled by a number of winds. industry setbacks, including soaring material costs, a shortage of semiconductors and various issues arising from the war in Ukraine.
The problems come at a crucial time for Tesla as it strives to ramp up production at its new factories in Shanghai and Berlin. Musk has previously said the company won’t launch any new products — citing the Cybertruck, Roadster and an unnamed entry-level sedan — until 2023, in line with that goal.
The company recently raised prices for its range to reflect this, noting that by the time many of today’s orders are filled, raw material costs will have risen significantly from today’s already inflated costs. today. Despite this, it posted record sales figures and profits in the first quarter of 2022, delivering 68% more cars worldwide than in the same period last year, and the equivalent of 2.5 billion profits – an increase of £536 million.
This isn’t the first time Musk has suggested Tesla could sell more cars if it was able to ramp up production. “Even before there were supply chain issues,” he said, referring to the effects of the supply chain crisis on the company’s overall numbers for 2021.