Tesla to build own car carriers

The company is upgrading its logistics system but running into an “extreme” shortage of car carrier trailers, Chief Executive Elon Musk tweeted on Monday in response to a customer. Photo: AP

The company is upgrading its logistics system but running into an “extreme” shortage of car carrier trailers, Chief Executive Elon Musk tweeted on Monday in response to a customer. Photo: AP

Published Sep 25, 2018

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INTERNATIONAL – Tesla is building its own car carriers, as the electric carmaker faces vehicle distribution problems.

The company is upgrading its logistics system but running into an “extreme” shortage of car carrier trailers, Chief Executive Elon Musk tweeted on Monday in response to a customer, who placed order for a Model 3 All Wheel Drive (AWD) in June but has yet to receive the car.

“Started building our own car carriers this weekend to alleviate load,” Musk said.

Earlier this month, Musk acknowledged that the company was facing more logistical problems now than production delays. He has been under intense pressure to prove he can deliver consistent production numbers for the Model 3 sedan, which is seen crucial to Tesla’s plan to become a mass-market automaker.

Tesla’s Model 3 sedan has been awarded a five-star rating by the US auto safety agency NHTSA in tests that are standard for cars in the US. 

The agency has been investigating crashes involving other Tesla models, which have raised questions over the functioning of the automaker’s auto-pilot system.

The company’s shares were up 1.7 percent at $304.27 (R4.400) in early trading on Thursday.

–REUTERS

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