Tesla To Have 'Most Intense Delivery Week Ever': Could It Help Q3 Earnings?

The end of the quarter is near, which means only one thing for Tesla Inc TSLA and its employees.

What Happened: The tradition of Tesla CEO Elon Musk sending an end-of-quarter memo to employees continues.

A short email to employees over the weekend said this week, which is the end of September and the third quarter, marks the company’s “most intense delivery week ever.”

Musk thanked Tesla employees for their continued “hardcore delivery push.”

The company’s direct-to-consumer sales model means Tesla owns the vehicle until it is delivered and paid for, which is different than other automotive companies that use a third-party dealership model.

Musk previously said September would be “the craziest month of deliveries Tesla will ever have.”

The good news for Tesla employees could be the following quarters may not see as much pressure in the last days.

“Hopefully, a lot easier next quarter,” Musk said in the email.

Related Link: Tesla Stops Referral Program As Expected Vehicle Deliveries Move Into 2022

Why It’s Important: In the future, Tesla will be less reliant on exports from Gigafactory Shanghai and its Fremont Factory. Given the direct-to-consumer sales recognition model, the factories face intense timelines.

The company reported wholesale sales of 44,264 vehicles in China for the month of August, up 275% year-over-year. July China sales totaled 32,968 vehicles. The company lowered its delivery target for the third quarter in August.

Tesla has turned in some impressive vehicle production and delivery figures over the last few quarters. High expectations and the impact of a chip shortage will make Tesla’s third-quarter delivery figure and financial report highly watched.

Tesla is expected to report third-quarter financials in October. The electric vehicle company reported revenue of $11.96 billion in the second quarter, up 98% year-over-year.

Second quarter production of 206,421 vehicles was up 151% year-over-year and deliveries of 201,304 were up 121% year-over-year.

TSLA Price Action: TSLA shares are trading at $787.80 on Monday, up 1.73%. Shares of TSLA have traded between $351.3 and $900.4 over the last 52 weeks.