Two Lines Are Always Better Than One

Two Lines Are Always Better Than One

Tesla Gears Up For Model X Production With Addition Of 2nd Production Line

Tesla Gears Up For Model X Production With Addition Of 2nd Production Line

Nearly 3 months ago, Tesla Motors idled its Fremont factory to install a second production line.

Recently, Global Equities Research analyst Trip Chowdhry went inside Tesla Fremont factory to explore the various upgrades Tesla performed.  In regards to that second production line, here's what Chowdhry reports:

"We observed that the new production line is fully operational.  This new production line has a potential production capacity of 3,000 cars per week.  The factory has an empty area, where Model III Production line could be installed."

Of course "potential capacity" is not to be confused with actual, or current; remember Nissan's Smyrna plant in Tennessee is capable of producing 150,000 LEAFs in a year, yet is currently tooled to make only about 40,000 - a demand level that took the company more than half a year to bump up to thanks to a very slow battery pipeline.

Chowdhry noted that at the time of his visit (late August) the lines were capable of pumping out 800 Model S EVs per week.  He estimated that production would hit the 1,000-unit per week mark with 4 to 6 weeks (so, right around now).

The retooling at Fremont cost Tesla $100 million.  It was the single largest investment made by Tesla into the factory since operations there began.  Most of the retooling was to allow Tesla to build both the Model S and upcoming Model X on the sames lines (2 lines, that is).

Source: Street Insider