Reuters reports that Tesla highly improved the efficiency of Model S and Model X production at the Fremont factory.
Tesla Model S Productio
The main gains are in decreasing the number of labor hours needed at the assembly line.
"Tesla Inc said the number of labor hours needed to produce its Model S and Model X cars have decreased considerably, following the latest report of quality problems that could prevent the carmaker from hitting its production targets."
"Tesla was responding to a CNBC report that said the company was churning out a high ratio of flawed parts leading to costly rework and production delays, citing several current and former employees."
It's now possible to achieve a production rate of 100,000 Model S and Model X annually using just a two-shift cycle with minimal overtime. Previously, Tesla needed three-shifts.
If this report is accurate, then we expect it to result in higher margins on the S and X.