Tesla Says It Improved Model S & X Production Efficiency
Reuters reports that Tesla highly improved the efficiency of Model S and Model X production at the Fremont factory.
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.