Tesla Says It Improved Model S & X Production Efficiency

MAR 15 2018 BY MARK KANE 53

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.

Read Also: Tesla Model 3 Production Was Indeed Halted In February

If this report is accurate, then we expect it to result in higher margins on the S and X.

Source: Reuters

Categories: Tesla

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53 Comments on "Tesla Says It Improved Model S & X Production Efficiency"

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bro1999
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When you set the bar so low at first, it’s easy to improve efficiency! #productionhell
https://www.cnbc.com/2018/03/14/tesla-manufacturing-high-volume-of-flawed-parts-employees.html

Loboc
Guest
Loboc

Tesla has more employees per produced car than any other manufacturer. Loads of room for improvement.

Goran
Guest
Goran

Completely agree.
Large platform production line in Fremont had a capacity of 175000 units two decades ago under NUMMI, and GM/Toyota were regularly churning out 155000 cars per year.

Robert Weekley
Guest

So, even if it takes until December 31st, 2018, for Tesla to reach a rate of 5,000 Model 3’s per week, they will still then be at a combined rate of 340,000 vehicles per year!

Goran
Guest
Goran

No.
Model 3 is being built on the Small platform production line, which under NUMMI produced between 200000 and 240000 units per year, or roughly 500p per week.

Gasbag
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Gasbag

“”Tesla has more employees per produced car than any other manufacturer. Loads of room for improvement.”

How many employees of the other manufacturers are are for their charging networks? Their solar division? Energy storage? How many stealerships are employees of the manufacturer? How many other manufacturers are gearing up to triple or quadruple cars sold Next year?

If we actually look at the employees associated with the design and production of the model S and X then Tesla looks pretty good.

Loboc
Guest
Loboc

” How many other manufacturers are gearing up to triple or quadruple cars sold Next year?”

There is a huge difference between going from 70k cars to 140k cars vs 7M to 14M cars. Tesla can do all this ‘tremendous growth’ in a single facility.

RAV4 EV
Guest
RAV4 EV

Great point. There will be a learning curve for new employees. It will take a new hire six mo to become efficient.

stan1
Guest
stan1

This is a nonsense comparison. Even if they didn’t also produce solar panels and grid storage batteries while also manning showrooms which other automotive firms outsource as independent dealers, they’d still be a rapidly growing firm doing R&D, production engineering and line assembly work for vehicles lines they don’t even produce yet.

stan1
Guest
stan1

Their model S and X lines are as advanced as any in the industry. The Model 3 is more advanced than any other currently in production.

Despite still being a small automotive firm and only recently being a small start up, and producing advanced products competing where most competitors achieve below average reliability, the firm already achieves average reliability for its Model S and the reliability ratings for its vehicles continue to improve.

stan1
Guest
stan1

The Model 3 production line is more advanced than any other currently in production.

stan1
Guest
stan1

Sorry, the Model 3 production line is more advanced than any other currently in operation.

m
Guest
m

Wow that was what you took away from that statement.

Not anything about the report they were responding to saying up to 40% of parts had to be re-manufactured? Or anything about the employee reports that the model 3 line is in disarray?

bro1999
Guest

Us commenters have to pick up the slack, I guess. 😉

“One current Tesla engineer estimated that 40 percent of the parts made or received at its Fremont factory require rework. The need for reviews of parts coming off the line, and rework, has contributed to Model 3 delays, the engineer said.

Another current employee from Tesla’s Fremont factory said the company’s defect rate is so high that it’s hard to hit production targets. Inability to hit the numbers is in turn hurting employee morale.”

bro1999
Guest

I guess this is what happens when you can’t line up the tier 1 suppliers like the big boys, and you have to settle for the tier 2/3 ones. 😉

Tim Kulogo
Guest
Tim Kulogo

Tier 1 suppliers make parts that go into the final product like a motor controller. Tier 2 suppliers make parts that go into the tier 1 suppliers’ parts like a circuit board for the motor controller. Tier 3 suppliers make parts that go into the tier 2 suppliers’ parts like transistor for the circuit board for the motor controller. This is the house that Jack built.

Tim Kulogo
Guest
Tim Kulogo

I once put a part into production that didn’t go like this. It was an amazing experience to have all the components meet spec right away and actually have the production line making good parts. It was a once in a lifetime experience. The reworked parts and high defect rate is just par for the course.

Recoil
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Recoil

gotta love bro anecdotal evidence of someones brothers uncle once said something bad about tesla so it must be true. What it probably was is another one of the basement dwellers screen names that made it up only to be used by another screen name.

Hey bro they going to finally start ramping up production on the bolt sometime this summer so they can sell less per month than they did a year ago?

Benz
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Benz

The Tesla Model S and the Tesla Model X both use the 18650 battery cells for the battery packs (produced by Panasonic in Japan).

Until when is Tesla going to keep using these 18650 battery cells for these battery packs?

Mu
Guest
Mu

Why would you want them to change from the 18650 to the 2170 form factor? They already proven can’t make them fast enough.

(I am assuming the 2170 form factor is adding to the manufacturing issues we have seen on the model 3 packs)

Doggydogworld
Guest
Doggydogworld

The 2170 form factor isn’t the problem. Tesla developed a new pack design and assembly process and specified some highly automated machines to do that assembly. The new machines didn’t work. Tesla blames a vendor, of course, but the real problem is a rushed development cycle without enough time for testing.

Tesla has set up “semi-automated” pack assembly stations for now, and told Grohmann to design and build a new assembly machine. The new machine, developed in record time, is supposed to arrive this month. It will work perfectly the day after installation, and Model 3s will flood the continent!

stan1
Guest
stan1

“The 2170 form factor isn’t the problem. Tesla developed a new pack design and assembly process and specified some highly automated machines to do that assembly. The new machines didn’t work. Tesla blames a vendor, of course, but the real problem is a rushed development cycle without enough time for testing.

They blamed themselves.

systemBuilder
Guest
systemBuilder

Apparently tesla BOUGHT Grohmann in Nov 2016 so there should not be any problems as they can fix problems internal to that company, now.

https://techcrunch.com/2016/11/08/tesla-acquires-grohmann-engineering-to-boost-production/

SparkEV
Guest

More delays and excuses will be coming. I thought it could take 10 years to fill all Tesla 3 reservations, it might take 20 years. CANCEL, or save it for grandkids, cuz you’ll probably die of old age if you’re late in reservation.

bro1999
Guest

Hey hey, get the lingo right. They aren’t “delays”, they are “production bottlenecks”.

SparkEV
Guest

I h8 u. 🙁

OTOH, this presents a huge opportunity for GM and others. Setup charging infrastructure rivaling Tesla and prevent free chargers, and they could actually compete against Tesla. As it is now, I can’t imagine driving CCS EV with all them free charging Bolts and soon even more Leafs and i3 even if charging locations are spaced like Tesla Superchargers.

bro1999
Guest

If freaking anyone would build a DCFC somewhere in Western MD, I’d be happy.
I’m all for 100% pay stations. Free charging should go the way of the dinosaurs.

Recoil
Guest
Recoil

Just think at the rates your paying for charging you bolt you could have bought a much better model 3 and saved some money.

Then again it is a lot of fun trying to guess if the charging station is even working when you get there or if another car is attached to one of the two chargers rendering the other useless.

Thomas Koogle
Guest
Thomas Koogle

Yeah, a dual Level 3 at Keysers Ridge or DEEP CREEK LAKE would be perfect! Could use a public Level 2 station in DCL as well!

gagaga
Guest
gagaga

I think, everything is OK for Tesla as long as they can sing the “production constrained” song.
The moment of truth will be, when production runs fine, and it becomes clear, that the losses will be as horrific as they are right now. Then the stock market will likely wake up.

CDAVIS
Guest
CDAVIS
From article: “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.” ——— The claims by ex-Tesla employees of Tesla churning out a high ratio of flawed parts is purposefully crafted to be overblown and taken out of context as a public campaign against Tesla coordinated between ex-Tesla employees that are UAW activists and the UAW. UAW is in high gear to undermine the Tesla Fremont Factory because it is not unionized and Tesla wants to keep the factory non-unionized because it’s no secret that UAW Local 2244 was a major contributor for shutdown of NUMMI… and Tesla desires to avoid a repeat of NUMMI. In the end It may prove out that it’s impossible to operate a car factory in California. If so Tesla will survive that event by eventually abandoning Fremont (as did GM & Toyota with NUMMI) and transferring manafacturing to a more friendly state as they have already done with the Nevada Factory… don’t be surprised for that factory to eventually include the capacity to crank out completed EVs. Shutdown of Tesla Fremont… Read more »
CDAVIS
Guest
CDAVIS

typo: “as they have already done with the Nevada Factory”

should read

“they have already done with moving battery manufacturing to the Nevada Giga Factory”

bro1999
Guest

It’s not just ex-employees, it’s current ones too.

stan1
Guest
stan1

Consumer Reports reliability data contradicts your claim. There is no reason you would know anyhow.

(⌐■_■) Trollnonymous
Guest
(⌐■_■) Trollnonymous

“In the end It may prove out that it’s impossible to operate a car factory in California.”

It just amazes me they are able to do this when the so called “Big Boys” Toyota and GM couldn’t keep the doors opened.

CA is a sh1tty state to manufacture. Some dirtbag politician even wants to tax robots for “working”!!!

ffbj
Guest
ffbj

Cool. I guess they won’t be recalling millions of vehicles because their steering wheels might fall off.
So called news reports of Tesla by outlets like CNBC and others are not to be trusted.

There is FUD and an anti-Tesla campaign which they ascribe too, since it’s a model that threatens their income, as Tesla does not advertise.

bro1999
Guest

Yep, if it’s something critical of Tesla, it must be FUD right? Because Tesla can do no wrong.

stan1
Guest
stan1

If it is coming from posters who regularly trot out FUD, it probably is more FUD.

Recoil
Guest
Recoil

Bro master of all fuds. You are on about 15 different message boards and get on every Tesla one even though you don’t own a Tesla then go and bash Tesla.

I am amazed at how much time you have to kill I can only imagine the piles of doritos, cheetos and mountain dew that are piled up in the basement of your moms house.

windbourne
Guest
windbourne

Kock Bros are paying ppl to spread fud in various areas. I would be amazed if Tesla is not one of them.
IOW, some of the trolls here are no doubt on their payroll

Someone out there
Guest
Someone out there

Yeah, they dropped the quality assurance step

Tom
Guest
Tom

Tesla automated it.

bro1999
Guest

Yep, QC is done via the same “complex” computer simulations that let Tesla skip the beta phase of Model 3 testing so flawlessly. 🙂

stan1
Guest
stan1

The Model S has above average reliability. Vehicles in its price range generally have higher feature complexity and below average reliability. Both the S and the more complex X have exhibited increasing reliability.

Recoil
Guest
Recoil

Hey bro I don’t think you need to talk about complex. Last I checked the great GM couldn’t even put a garage door opener in their $42,000 bolt. How about they start with that and then they can move on to more complex stuff like active cruise control that can be found in cheaper cars since 2010.

Get Real
Guest
Get Real

5 posts and counting from serial anti-Tesla troll Mental MadBro.

Keep it up you GM shill and you will soon be in the double digits again with your whiney, repetitive FUD.

Tesla threads are basically the only place you carpet bomb anymore since you are such a MAGA in the mold of Trump.

Meanwhile I and other EV enthusiasts will continue to cheer ALL EVs as a win, win for everyone while you and your fellow trolls continue your selective advocacy.

bro1999
Guest

Get FUD: continue to remain your clueless self. It’s cute in a way.

Get Real
Guest
Get Real

Take your meds since GM is paying for them.

Richard Giddens
Guest
Richard Giddens

Sounds like yet another reason to buy a Chevy Bolt EV instead of a chocolate box Tesla. Bolt EV is simple solid built commuter car. Model 3 busts the dinero limits and gives more style and class. I wonder if Tesla’s runnin’ on empty nw that they shifted and shafted the model 3 owners with higher supercharger rates and diminished / eliminated tax credits for the model 3 suckers.

SparkEV
Guest

Running on empty? You should ask people who’s delivery dates are almost a year away. There may be some who have dates 20 years away.

Richard Giddens
Guest
Richard Giddens

Cant wait for Tesla to go broke and croak…and sell off their supercharger network to GM or God forbid , EVgo…

Recoil
Guest
Recoil

Hey Rich I know you ain’t getting rich shorting Tesla stock. I think you may be waiting a long time and sad Rich will probably be in the poor house long before Tesla croaks.

WadeTyhon
Guest
WadeTyhon

You actually want Tesla to go broke? Why? Put tens of thousands of jobs at risk and strike a severe blow to EV growth? Maybe you simply expect it to happen, but why would you want it to happen?

And why would GM buy their supercharger network if it did? Would they convert them all to CCS or something?

While GM is finally starting to assist with installations and make deals with companies like chargepoint and evgo, they have made it very clear they don’t intend to own their own charging network. 😛