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Elon's Punch Myself in the Face comment

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lolachampcar

Well-Known Member
Nov 26, 2012
6,471
9,378
WPB Florida
You just got to love a guy that says something to the affect of ..... We had to fly tires in from Europe to meet production -- I kid you not; I wanted to punch myself in the face for that one.

That was Elon talking about Q4 production logistics on the Q4 results conference call today.
 
I have no idea where the tires are made, although I would hope in the USA or at least have a distribution center here.

He made it sound that the lack of tire availability was holding up production so he had to FLY them in from Europe which I'm sure was obscenely expensive. Feel free to get a quote from UPS on intercontinental shipping for tires, and then see how much it would cost to overnight them. I have no idea what it would be, but a wild guess would be somewhere around the same price as the tire itself!!
 
Elon spoke to having 30 day terms, having it take longer than 30 days to receive the tires by boat and thus being late before receiving the product. It put a strain on the relationship. Perhaps the new vendor was more compliant.

That is silly.

N30 usually doesn't start from shipment but delivery. Especially with ocean transit.
They should fire their supply chain guy

That is embarrassing.
 
That is silly.

N30 usually doesn't start from shipment but delivery. Especially with ocean transit.
They should fire their supply chain guy

That is embarrassing.

Usual is of no relevance, particularly if you need something for your customers, yesterday.

You have no idea what happened to cause the issue in the first place, so suggesting a person be fired is like throwing the baby out with the bath water, without knowing if the baby is Damien Thorn.
 
Usual is of no relevance, particularly if you need something for your customers, yesterday.

You have no idea what happened to cause the issue in the first place, so suggesting a person be fired is like throwing the baby out with the bath water, without knowing if the baby is Damien Thorn.

It appears that they negotiated N30 terms and ocean shipment for tires.
The N30 started ex works.

Not very smart. Not very smart to do at all. Because you will have to pay for the good BEFORE receiving them which goes against all good supply chain practices.

That's what Elon stated.

You don't ever want to pay for goods before receiving and inspecting them when you are a business.

Any supply chain guy that knows best practices will tell you that.

Flying material to expedite and meet customer demands is a totally different issue. Apparently having a base agreement that triggers payment prior to receipt of goods is poor supply chain management.
 
We're obsessing over a detail here. As was also mentioned in the conf call:

  • Suppliers saw Tesla as a start-up.
  • The actual order bias towards performance versions was a surprise.

Read that as "terms were difficult to negotiate and we got our numbers wrong". Elon's famous for his compulsive attention to detail and that's likely why he blames himself and not his purchasing managers.
 
yeah i have no idea what is so funny or controversial here. can someone explain why this has the poster punching himself in the face?

I got a chuckle out of the comment and the delivery. There is nothing controversial about it. As someone else said, its just nice to hear an honest answer to a question and throwing in a little self deprecation makes it all that much nicer.

BTW, Elon was punching himself in the face...... I was not. If you are curious, go listen to the call.
 
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