When a business has high demand for its key product, it often faces challenges with deliveries. Electric vehicle (EV) maker Tesla Inc. (TSLA) seems to be having such issues linked to deliveries of its Model 3 autos, which threatens to become a bottleneck for the sought-after cars. Before the snag becomes unmanageable, the Palo Alto, California-based company has started building a new delivery organization to support Model 3 deliveries, according to EV auto news portal Electrek.
Tesla has been successful in significantly bumping up production of its mass-market Model 3 car this quarter, and CEO Elon Musk is hopeful of further improving on existing production numbers. The company is readying to deliver four times the number of cars they have in the past. (See also: Tesla Made 6,000 Model 3's in June.)
The launch of the dedicated delivery organization comes as the company is embarking on building new delivery channels that include developing new delivery centers and offering new delivery methods. The company continues to test its innovative "sign and drive" program, which was launched in July and allows future Tesla Model 3 owners to drive away with their new car in as little as five minutes. (See also: Tesla to Speed Up Model 3 Buying by Dropping Reservation System.)
Notable New Hires for Delivery Deppartment
In May, the company hired Kate Pearson, a former VP for strategy, operations and digital acceleration at Wal-Mart Inc. (WMT), to lead its new delivery operations as director of field delivery operations. Citing sources familiar with the matter, Electrek reports that the delivery department has been separated from the sales department in the North American region after undergoing an extensive restructuring. The changes include appointment of four new general delivery managers for the North American region. New appointees include internal promotions from within the company, as well as hiring of an operation executive from Best Buy Co. Inc. (BBY).
The changes linked to the new structure also percolate down, with regional delivery managers appointed at the level of smaller regions. While most of these positions are filled with internal promotions, there are a few noted new hires from other leading organizations. For instance, former Apple Inc. (AAPL) operation manager Justin Harden now heads deliveries in the southwest, former Amazon.com Inc. (AMZN) area manager and Air Force One operation director Mark Mason is responsible for Tesla deliveries in Texas and Mexico.
Though a good number of such positions are filled in, more than 100 are listed on company’s job site. The company also plans to hire a significant number of temporary employees to help with the deliveries, with the highest number of positions expected to be in Tesla's Fremont, California, f. (See also: Tesla Falls as Traders Eye Deliveries Over Production.)