Tesla to Combat Distribution Problems With Its Own Car Carriers

Tesla is building its own car carriers, as the electric carmaker faces vehicle distribution problems. The company is upgrading its logistics system but running into an "extreme" shortage of car carrier trailers, Chief Executive Elon Musk tweeted on Monday in response to a customer, who placed order for a Model 3 All Wheel Drive (AWD) in June but has yet to receive the car.

"Started building our own car carriers this weekend to alleviate load," Musk said. Earlier this month, Musk acknowledged that the company was facing more logistical problems now than production delays. He has been under intense pressure to prove he can deliver consistent production numbers for the Model 3 sedan, which is seen crucial to Tesla's plan to become a mass-market automaker.

Last week, Tesla's Model 3 sedan was awarded a five-star rating by the US auto safety agency NHTSA in tests that are standard for cars in the United States. The agency has been investigating crashes involving other Tesla models, which have raised questions over the functioning of the automaker's auto-pilot system.

The agency started the 5-Star safety rating program in 1993 and Tesla's Model X and Model S, which has been the subject of at least one NHTSA investigation, have both received the top rating in the past.

Also last week, Tesla said on the US Department of Justice was investigating Chief Executive Elon Musk's public statements in August that he was considering taking the electric carmaker private, the latest and biggest threat to Musk and his leadership of the electric car maker.

The Justice Department asked Tesla for documents about Musk's announcement, Tesla said, describing it as a "voluntary request." The company said it was co-operating and that the matter "should be quickly resolved."

© Thomson Reuters 2018