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Tesla is in a full ‘end-of-the-quarter push’, more inventory cars and buyers reporting unusual discounts


Tesla always goes full steam ahead at the end of the quarter to reduce transit time and make sure as many vehicles as possible get delivered in order to increase revenue for the quarterly report. But we knew this quarter would be even more special after a company-wide email from CEO Elon Musk leaked last month.

Musk urged employees to do everything they can to deliver as many cars as possible because he sees the potential to achieve GAAP profitability in Q3, which would be a first in 3 years. We have reported some unusual (for Tesla) discounts  and we’ve even seen the automaker opening the door for a move away from the ‘no haggle’ sales model, but it has never been more evident than in the last few week at end of the quarter.

Tesla increased the number of inventory vehicles available in order to cut the wait time. Previously, it would still take a few days between the transaction and the delivery even if the vehicle was on the lot and up to 2 weeks to get it delivered from another Tesla store, but now some new buyers are reporting been able to drive it off the lot.

It compares to the 1 to 3 months wait when custom ordering a new Tesla. The automaker also introduced a new online tool last month to suggests similarly spec’d inventory cars when custom ordering a vehicle online.

The new tool will be particularly useful to help push the new inventory vehicles and reduce the wait time.

Even some inventories of the new Model S P100D have been listed for sale as plenty of buyers who custom ordered online are still waiting for delivery.

Tesla is also reportedly offering important discounts now well beyond the ones we reported in our piece: “Tesla is showing signs of moving away from the ‘no haggle’ sales model“.

Someone has even reported being offered an inventory Model S 75 for the price of a new Model S 60 and others are reporting up to $7,500 in additional discounts.

It looks like all those incentives are aimed at increasing the number of deliveries by the end of the quarter – September 30.

Tesla exited the second quarter at a production rate of ~2,000 vehicles per week. If it manages to maintain that throughout the third quarter and that the number of vehicles in transit at the end of the second quarter is similar to that at end of the third quarter, the automaker could have as many as 26,000 vehicles to deliver.

If it can sell most of them, it would beat its previous delivery record of 17,400 vehicles in Q4 2015, more importantly, it would help achieve their goal to deliver ~50,000 cars during the second half of the year.

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