Tesla Production Below Expectations


The popularity of Tesla vehicles keeps the production lines busy, and Elon Musk’s bank account full. Musk is known for his overachieving attitude and innovative marketing ideas. This time, however, manufacturing ideals may have been overestimated. You can rest assured that a solution is underway. Those with reservations to purchase the Model 3, however, may be waiting longer than expected. Here’s what has been happening at Tesla factories early in 2018.

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Vague Confirmations
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In hopes of solving the issues without making a big issue over it, Tesla remained vague in their explanations. Big news, however, is difficult to hide. The first explanation stated non-specific complications resulting in a bottleneck effect. Production was estimated to reach 5,000 units per week by the end of the quarter 1. The numbers fell far below this goal at under 300. Rumors began about the Fremont factory and supplier back-ups. Confirmation of the real problems took some time to reach the forefront.

Some Words from Musk

Elon Musk remained somewhat secretive about the problems, possibly stalling negative press while he tended to his business endeavors. Without full disclosure, he gave some hints about the Nevada Gigafactory. This location is responsible for the manufacture of two main parts necessary for the Model 3 vehicle. The drive unit and battery pack production seemed to have hit some snags. Individuals with reservations to purchase were given no clear deadlines.

Formal Statement

Tesla finally responded with a formal statement, realizing the press was not going to back down. This statement gave confirmation of the battery pack production issues in Nevada. The statement, however, attempted to take negative attention from Tesla. The battery pack and its manufacturing process were described as complex. Apparently, more time is needed to speed up the process.

This statement release also mentioned that Tesla had to take over some of the manufacturing systems suppliers. This indicates that they were not up to standard prior to Tesla’s intervention. This looks a little like Tesla is trying to place blame elsewhere. Tesla promises that their highly qualified engineers are on task and solving the problems. The formal statement, overall, aimed to reassure consumers that Tesla production is planned to resume at higher rates soon. They even went so far as to promise to exceed the original production estimate of 5,000. The possibility of 10,000 units per week has been mentioned. Hopefully, they can get things rolling before consumers start to show concern.

The Positive

Tesla took some time to focus on manufacturing processes that are going well. An inside look at the welding station was released, showing Tesla’s futuristic machinery. One part of the production process was shown to produce at a rate of 1,000 units per week when at its highest capacity. This has been achieved in the area of seat assembly and drive until manufacture. Pictures of these areas in action were also added. The paint shop is also keeping up with this claim. Musk is sure to push for sufficient production from all areas.

The high demand for each new product from Tesla puts a lot of pressure on the manufacturing team. Tesla ran into some glitches this time around. These issues are said to have stemmed from some reorganizing of some areas of supply and production. Full disclosure of the complications has been somewhat avoided. Tesla, however, is a company that stands behind its product. Musk is sure to get production at capacity soon. The company’s reputation shows stability and consistency. Consumers show no sign of backing down on purchases. The Model 3 is still a source of excitement and anticipation.

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Tesla Production Below Expectations

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