At the start of the year, Tesla reported declining sales, and there were genuine fears about the future of the company. The stock price declined significantly as more and more investors believed that the company’s growth story had perhaps come to a halt for the time being. However, Tesla came back with a bang in the 2nd quarter of 2019 as it generated a record number of deliveries for its Model 3, its most popular car. Although the company has many models, the Model 3 is the company’s bread and butter since it accounts for around 70% of its total revenues.
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However, such a record-breaking performance needs to be backed up by consistency in the upcoming quarters, and hence, the company has to find ways to ensure that it continues to post such figures. After its record-breaking performance, the Chief Executive Officer of Tesla took to Twitter and spoke about an existing service named Tesla Direct that could be used to boost deliveries. Although the service had been part of Tesla, it still remains a bit obscure to most observers of the company. The service is designed to make express deliveries to customers to order any of the Model 3, Model S, or Model X.
Any customer who buys any of those cars will have the choice to have the car delivered directly to their office or home. The company has not stated whether the Tesla Direct service has actually taken off or not and in fact, nothing about it was mentioned in its second-quarter report. However, the fact that Musk promoted it on Twitter recently points to the fact that the company is now actively looking to leverage this service to further boost its delivery numbers. Tesla has always been an innovative company when it comes to offering certain retail experiences to customers, and if the company can market Tesla Direct, then it could prove to be a game changer. A car shopping researcher agreed with Musk as well. He said,
Customers desperately want an easier buying process with at-home delivery. Elon Musk is spot-on with consumer desires.
