Tesla Aims To Get Out Of Delivery Hell By Swapping Stock For Car Haulers

Tesla went from “production hell” to “delivery logistics hell,” but it appears the company is doing something about the latter.

According to a lengthy Securities and Exchange Commission filing noticed by CNBC, Tesla is set to give California’s Central Valley Auto Transport up to 49,967 shares of common stock in exchange for the “acquisition of certain car-hauling trucks and trailers.” The filing doesn’t say how many car haulers the company is looking to purchase, but the publication noted the stock had a value of $13.8 (£10.5 / €12.2) million on February 12th.

Neither company would respond to CNBC’s request for comment, but Central Valley Auto Transport’s website says they have a “diversified fleet of 100 trucks [and] 1-9 car carriers.” The company also noted all their trucks are equipped with GPS tracking systems which enable them to be monitored and “dispatched efficiently.”

It’s believed the trucks and car haulers will be used to help alleviate Tesla’s highly publicized delivery problems. The Shorty Air Force, which consists of people shorting Tesla stock, has documented thousands of Tesla vehicles waiting to be delivered and customers have been pretty vocal about repeated delivery delays.

While Tesla appears to be tackling the issue, the company admitted “there remains room for more improvement” in regards to their delivery and logistics systems. As part of Tesla’s Fourth Quarter and Full Year 2018 Update, the automaker said “We have purchased and are continuing to purchase our own car-hauling truck capacity for vehicle shipments.” Tesla said this gives them “far more control” over deliveries while also “lowering costs and improving customer satisfaction.”

  • Mike anonymous

    I don’t know if I am the only one who may be seeing (or if I may be the only one who noticed) this,. But it seems as though Tesla is doing just about everything to save money for financial benefit (which isn’t a bad thing if your thinking about keeping the company alive at least) as of late.

    Closing down a number of retail stores & switching to mostly online sales (which cuts jobs for a number of retail based employment as well as saving them from not needing to pay to keep a retail location open), all to help Model 3 production and development,… to name one of the few others so far.

    1st party Decisions (such as the one this article is based on) made at the company which enable them to save on money (to then hopefully put those now ‘saved’ funds to good or better use).

    I am not saying there is anything wrong with these things, but it seems as though public perception (or at least the way the media is displaying it,) is as if this is being done more for ‘innovative‘ purposes then for that of “A more proper (and very much so needed) financial management” of the company.

  • IT SEEMS UNNECESSARILY COMPLICATED. JUST BUY SOME HAULERS AND HIRE DRIVERS.

    • Mr. EP9

      I don’t think they have the money on hand to do that so stock options might be the only way for them. Yes, we know they had two profitable quarters but that money is probably tied up right now.

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