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Automation at Tesla |
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EXCERPTS |
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Tesla’s mission was to accelerate the world’s transition to sustainable energy and to manufacture more EVs at a faster rate and lower cost. In August 2006, Musk published “The Secret Tesla Motors Master Plan”, according to which the company’s long-term plan was to build a wide range of models, including affordably priced family cars. Musk planned to do this through factory-automation, including automating final assembly. Tesla planned to ramp up production to 500,000 cars per year... |
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PayPal (9 USD)
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| In March 2016, as part of Musk’s long-term vision, Tesla unveiled its Model 3 – a low-priced, high-volume EV for the masses priced at US$35,000.After it was announced, the Model 3 quickly garnered 450,000 pre-orders. Since Tesla sold its cars directly to consumers without relying on a dealer network, customers were asked to make the required US$1,000 deposit. The car’s production began in 2017. .. |
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| Musk eventually realized that his strategy of hyper-automating Tesla factories was not working and admitted that robots were contributing to the slow ramp up. According to him, “excessive automation” at the Tesla plant had actually slowed down the Model 3 production process and the production system relied too much on robots that were ill suited for certain precision tasks. He admitted that there was an over-reliance on automation with too few human assembly line workers building the Model 3... |
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| According to some analysts, Musk had tried to aggressively automate the final assembly process of Model 3 but had failed terribly. They opined that beyond a certain point, excessive automation tended to create a more complex production environment with more new equipment to launch and more maintenance being needed, thereby raising costs. .. |
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| Going forward, one of the biggest challenges for Tesla would be to continue to ramp up production of the Model 3 Sedan, which, according to analysts, was crucial for it to continue being profitable on a sustained basis... |
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| Despite the problems Tesla faced, Musk stated that automation would be vital to the company’s future going forward. Betting big on automation, he said that the build quality of the Model 3 had improved significantly since the start of production based on the service time after deliveries... |
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Exhibit I: Best-Selling EVs Brands and Models (Jan 2017-September 2017)
Exhibit II: Tesla Production Roadmap (as of September 2019)
Exhibit III: Inside Tesla’s Freemont Factory
Exhibit IV: Tesla: Consolidated Statements of Operations
Exhibit V: Safety Violations by Top US Auto Manufacturing Plants (2014-2018)
Exhibit VI: Tesla Vehicle Production and Deliveries (Q3 2017-Q4 2019)
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