Home News Tesla’s Elon Musk Focuses on Direct-to-Driveway Deliveries

Tesla’s Elon Musk Focuses on Direct-to-Driveway Deliveries


Earlier Tesla returned past expectations for automobile deliveries this past week, Elon Musk was on Twitter promoting a months-old service that remains a tiny mystery to the legions of all electric vehicle lovers that follow the company’s each movement.

But based on Daan Hermsen’s experience, the development of Tesla Direct could play a part in helping the organization maintain momentum. The 30-year-old medical care business salesperson living in the Utrecht province of the Netherlands originally planned to pick up his metallic blue Model 3 in a Tesla centre in Tilburg approximately 90 km (56 miles) from home before finding out he’d been picked for immediate delivery.

The program, called Tesla Direct, offers some buyers of the Model 3, SX the option to have their auto dropped off right for their home or workplace. Musk and Tesla have said little about how widespread the ceremony has become since it began last year, and the company didn’t mention it in its own statement Tuesday declaring that global deliveries soared to 95,200 last quarter.

“My neighbors saw it appear, and they need to push it,” Hermsen said. The only drawback he struck was that the delivery pro put a few miles on his car by driving it to his home in Amersfoort.

In his tweet on Monday, Musk lent a follower in Santa Clara, Calif., who likened Tesla Direct to Amazon’s Prime Support. The CEO appeared to appreciate the contrast.

Yep, order online at https://t.co/46TXqRrsdr in two mins & car delivered directly to home https://t.co/7ax8MwzBWx

— Elon Musk (@elonmusk) July 1, 2019

Tesla’s experimentation with home transport should come as no surprise, given that the organization ’s approach to market has been somewhat distinctive from the beginning. It’s flouted the franchise dealership model and sold cars direct to customers, allowing Musk more flexibility to try something different.

“Customers desperately want a simpler buying process with at-home improvement,” said Michelle Krebs, an analyst in car-shopping researcher Autotrader. “Elon Musk is spot-on with consumer desires. ”

In the days leading up to the quarterly sales deadline, Musk had implored Tesla employees to “go all out” to quicken shipments of automobiles on order. It’s unclear what part, if any, the immediate delivery service performed in what the company said were indicated logistical improvements last quarter.

While quite a few questions remain about Tesla Direct–including how scalable and cost-efficient it’s already been –interviews with customers who’t used the service afforded a few clues to how it works. They explain taking delivery from a truck driver or even a professional who gets behind the wheel and drops the car off in a driveway or workplace parking lot. The specialist then hails a ride back to a Tesla centre.

&ldquoWe made significant advances streamlining our international delivery and logistics operations at higher volumes, allowing cost improvements and efficiencies to our working capital position,” Tesla said in its announcement Tuesday. Agents for the business didn’t react to a request for comment on Tesla Direct.

Eric Okon, the co-owner of a company car service in New York City, had 2 Model 3s delivered to the organization ’s office in Queens on June 28.

“It was absolutely suitable,” Okon explained. “It turned out to be a quick process; it was really simple. ”

More must-read stories from Fortune:

–The fall and rise of VR: The struggle to make virtual fact get actual

–Microsoft is pressing customers’ digital bookshelves

Jony Ive’s departure means big changes are coming back to Apple

–As office burnout captures more attention, could more tech be the answer?

–Listen to our new sound briefing, Fortune 500 Daily

Grab up with Data Sheet, Fortune‘s daily digest on the business of tech.

Buy Tickets for every event – Sports, Concerts, Festivals and more buy tickets