June 26, 2019 12:15 PM, EDT

Tesla Must Go ‘All Out’ to Set Deliveries Record, CEO Elon Musk Says

Tesla carsWorkers unload Tesla Inc. Model 3 electric vehicles from a car carrier outside the company's delivery center in Marina Del Rey, Calif., on Sept. 29, 2018. (Patrick T. Fallon/Bloomberg News)

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Tesla Inc. could be on the verge of a quarterly record for vehicle deliveries, though the electric carmaker will need to go “all out” in the last few days of the month, CEO Elon Musk wrote in an internal memo.

“There is a lot of speculation regarding our vehicle deliveries this quarter,” Musk told employees in an e-mail June 25. “The reality is that we are on track to set an all-time record, but it will be very close. However, if we go all out, we can definitely do it!”

Tesla shares have slumped 34% this year, in part due to concern about demand that Musk has repeatedly downplayed. The company has forecast it will deliver 90,000 to 100,000 cars in the second quarter after handing over just 63,000 vehicles to customers in the first three months of the year. The stock rose as much as 1.8% June 26.

Tesla CEO Elon Musk


A Tesla representative didn’t respond to a request for comment. The company’s previous best for quarterly deliveries was 90,700 vehicles in the past three months of 2018.

“We already have enough vehicle orders to set a record, but the right cars are not yet all in the right locations,” Musk wrote. “Logistics and final delivery are extremely important, as well as finding demand for vehicle variants that are available locally, but can’t reach people who ordered that variant before the end of the quarter.”

Amid all the attention on Musk’s delivery push, the CEO may have lost a member of his executive team within another key area of the business. Peter Hochholdinger, the head of production in charge of all vehicle manufacturing at Tesla’s factory in Fremont, Calif., has left the company, Electrek reported. Tesla hired him away from Audi in 2016.

Analysts’ average price target for Tesla shares has slumped to $269.39 from $342.84 at the beginning of this year, according to data compiled by Bloomberg News. Sixteen analysts recommend selling the stock, compared with eight holds and 12 buys.

Some of Tesla’s skeptics, including Goldman Sachs’ David Tamberrino, are cautioning that while deliveries may beat the low end of the company’s guidance for the second quarter, the strong showing may not be sustainable. The U.S. federal tax credit that Tesla’s Model 3, Model S and Model X will be eligible for shrinks to $1,875 as of July 1, from $3,750.

“We believe a downward path for shares will resume as it becomes more clear that sustainable demand for the company’s current products are below expectations,” Tamberrino wrote in a report last week.

Musk, who turns 48 this week, is going to keep on pushing. When asked by a Twitter follower June 25 what his plans were for celebrating his birthday, his reply echoed his internal e-mail.

“Working on Tesla global logistics,” the billionaire wrote.