#Fremont

Tesla has earned no shortage of criticism for being the only American manufacturer yet to suspend production as a result of the coronavirus pandemic. Rather than enact a full-blown shutdown, the California-based automaker opted to reduce its active workforce to just 2,500 employees — about a quarter of its total strength.

Six counties in the San Francisco Bay Area have issued a “shelter-in-place order” aimed at curtailing the spread of the novel coronavirus. Tesla’s Fremont facility is located in Alameda County — one of the municipalities telling residents to stay in their homes and close all nonessential businesses. Noticing that the factory had failed to comply with the notice, the Alameda County Sheriff’s Office tweeted out that Tesla was “not an essential business as defined in the Alameda County Health Order.”

But we’re not even sure what the company is legally obligated to do.

In last Wednesday’s QOTD post we covered all the worst examples of automotive collaboration. Commenters racked up the examples, sharing collaboration failures even worse than the Jaguar X-Type selected for textual pillory in the post.

Today we flip it around and discuss the best outcomes of automaker cooperation.

Ever since Ford discontinued the Crown Victoria Police Interceptor, it’s become much harder to watch out for cops. Initially, you just had to keep tabs on any Dodge Charger in dark paint, but that quickly evolved into drivers becoming suspicious of every monochrome Explorer, Taurus, Durango, Tahoe, or Fusion Hybrid on the road as law enforcement began adopting the models for official use.

A police department in Fremont, California has added a Tesla that list, garnering tons of media attention in the process. However, after looking into the story, it seems Fremont is only testing a single, second-hand Tesla Model S 85D it purchased a year ago to see if the model is fit for service. Considering this is the same city where Tesla manufactures the vehicle, one would think the Fremont Police could have worked out some kind of deal with the factory. However, what interests us — and probably the department — most is figuring whether or not the 2014 Model S can actually hack it beneath the thin blue line.

The United Automobile Workers have had its eyes on Tesla Motors for years. However, it wasn’t until the start of 2017 when unionization efforts at the automaker’s Fremont, California factory really started ramping up. Following complaints that the automaker failed to ensure effective safety measures, Tesla employee Jose Moran published a blog post that openly criticized the company for overworking its staff in unsafe conditions. Moran also said payment was insufficient and promotions were unfair — suggesting unionization was the only way to protect employees.

Soon afterwards, the UAW began filing a slew of complaints to the National Labor Relations Board (NLRB) while Tesla was confronted with racial discrimination lawsuits. Widespread reports of worksite injuries also surfaced. The California Department of Industrial Relations saw over 180 Tesla employees applying for compensation as a result of serious injuries between 2012 and 2017. Now, the UAW is accusing the automaker of intimidating pro-union employees and terminating those it could not sway.

Tesla keeps insisting it’s going to show the automotive industry how to do things differently. The company’s make-or-break Model 3 was put into production without any pilot assembly or validation prototypes. Tesla is also more vertically integrated than traditional automakers these days. It owns its own stores and it makes many of its own parts. So far, with the EV maker as of yet unable to really get mass production underway on the new sedan, the jury is out on Tesla’s strategies.

CNBC now reports current and former Tesla workers saying almost half of the parts made at or produced for the EV startup’s Fremont, California assembly plant don’t meet production standards, forcing rework and end-of-line repairs, as well as impairing morale in the facility.

This raises the question of whether Tesla will be able to mass-produce vehicles in the quantities associated with automotive mass production: hundreds of thousands of vehicles per year. Tesla needs to be able to build and sell its Model 3 at those numbers to be a viable firm.

Never has the air of breathless futurism surrounding Tesla taken such a hit. Following a revealing earning report and numerous reports of continuing production bottlenecks, this week wasn’t a good one for either Tesla shareholders or Model 3 reservation holders.

The electric automaker pushed back its 5,000-vehicle-per-week goal to the end of the first-quarter of 2018, rather than the end of this year. Its 10,000-vehicles-per-week goal remains a question mark. Tesla also announced a decrease in Model S and X production to bolster resources for Model 3 builds. In reporting a quarterly loss of $619 million, Tesla made it clear it’s burning through piles of cash in an attempt to smooth out production line hurdles.

Now, a new report sheds light on the frenetic activity occurring inside its Fremont, California factory. One of the claims certainly won’t soothe those worried about a long-standing Tesla concern: build quality.

Lately, we’ve been guilty of the same behavior as a lot of other well-rounded and objective automotive publications — bashing Tesla Motors. It hasn’t been done maliciously, but we’d be lying if we said the divisive hype and hate surrounding the company didn’t bother us. However, since the summer launch of the Model 3, a slew of happenings at Tesla have have raised unanswered questions.

The biggest question surrounds the cause of the company’s rather severe production delays. Tesla also fired hundreds of employees this month, without any clear answer as to why, and seems to have shelved a cross-country trip aimed at highlighting the progress made with its Autopilot driver assistance platform.

None of this would be quite so noteworthy if its stock valuation wasn’t still stratospherically high and CEO Elon Musk hadn’t publicly promised so much — but that isn’t the reality we’re living in. Now, with the company reporting its third quarter earnings on Wednesday evening, we’re hoping to get some clarity on what exactly is happening in Fremont, California.

We’ve debated Tesla Motors’ production ramp-up in the past, coming to the obvious conclusion that the automaker has a long road ahead of it before its proposed volume goals can be reached. The company knows this and Elon Musk has repeatedly said scaling up Tesla’s vehicle assembly will be akin to a kind of “production hell.”

However, we haven’t done a comparative analysis to extrapolate just how ambitious Tesla’s targets truly are. Half a million vehicles by next year is a lot of annual production for any fledgling automaker. We assumed the company would do its best and we’d see how close it came to the bar at a later date. But, with the Model 3 production getting off to an incredibly slow start, it’s worth looking at how far Tesla’s factory in Fremont, California, will have to climb to achieve the desired numbers.

It isn’t looking particularly good in the short term.