By on June 14, 2016

Tesla Supercharger With Model S At Tesla Dealership

The stuck cork that was the Model X has finally cleared its supply hurdles, causing Tesla production to hit a new high at the automaker’s Fremont, California factory.

With assembly of that model speeded up, Tesla recently hit a production rate of 2,000 vehicle per week, a knowledgeable source told Electrek — a figure that’s still way off the company’s goal of building half a million units per year within the next 18 months or so.

Okay, that’s a “glass one-fifth full” view, but at an annualized rate of 104,000 vehicles/year, most of the race still needs to be run. Until July 1 rolls around, though, it’s right where Tesla wants to be. In his first-quarter 2016 shareholders letter, company CEO Elon Musk said he wanted to hit the target by the end of June, and crank out a further 50,000 vehicles by the end of the year.

Musk said first-quarter production stood at 15,510 — up 10 percent from the previous quarter, but still held back by production issues of the Model X, which some say is haunted. (Software updates are promised to rid the SUVs of those pesky door-slamming ghosts.)

Going forward, the hundreds of new assembly line workers hired during last month’s job fair should help bump up the production rate. The existing assembly lines still have capacity left, and the company needs extra manpower on tap come next year. If it can’t get 373,000 Model 3 orders filled in a hurry, plebian buyers might throw up their hands and trudge over to the Chevrolet dealership, which they hoped to avoid.

While there’s happy news for Musk on the production front, the CEO has been busy launching nukes lately. Musk even raised the specter of a conspiracy against his company while responding to reports of Model S suspension failure. Some extra time in the sleeping bag might be in order.

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39 Comments on “Tesla, Free of Model X Production Constipation, Hits 100,000 Unit Annual Production Rate...”


  • avatar

    I wonder how friendly the Trump administration will be to Tesla?

    The MODEL X will eventually be redesigned and streamlined for higher performance – especially in the door operation. Early adopters may benefit further down the line. Makes so much more sense to lease these things so Tesla can recall and refit them as time passes.

    Waiting to see what impact the MODEL III has on my stocks.

    • 0 avatar
      TOTitan

      There will be no trump administration to be friendly to Tesla. After his shockingly idiotic and self serving comments about Orlando, even conservative commentators are now saying he is unfit for office.

    • 0 avatar
      philadlj

      Thanks to the failure of the GOP to nominate a remotely plausible candidate, there are serious discussions about Arizona, Georgia, Mississippi, and even Utah swinging blue in November.

    • 0 avatar
      SCE to AUX

      Tesla’s future won’t depend on November’s election winner.

      • 0 avatar

        Well, the answer to the question BTSR ponders is that a Trump administration would be delighted to help Tesla succeed any way he could. If it’s built in America, he’s in.

        • 0 avatar
          VoGo

          Except that Musk is self-made, better looking, dates hotter women and is actually changing the world for the better.

          Which means that Trump would realize Musk is everything he wishes he was and would do everything possible to hurt him out of spite.

          • 0 avatar

            Stop drinking the kool-aid.

          • 0 avatar
            VoGo

            You defend Trump and accuse others of drinking Kool-Aid?

            Interesting.

          • 0 avatar
            JimZ

            Trump is so dishonest it’s not even worth trying to talk about what he might actually do.

            And I don’t mean “dishonest” as in “what everybody expects from a politician.” I mean “dishonest” as in he could tell you to go to hell and convince you the trip was your idea.

            for most of my life I’ve generally leaned conservative (but *not* reactionary!) but I don’t shield myself from different viewpoints. I dabble in podcasts; most suck but when I see an episode I’m interested in I listen to it. David Axelrod has one (The Axe Files) and he had Jon Stewart on not too long ago. one segment had Stewart talking about how politicians are, and he said something along the lines of how they’re all “in-authentic” but you can see the difference in how they render their inauthenticity. With some, you can see a bit of lag as they try to come up with the “right” thing to say. Others can render their inauthenticity in real time without blinking, and those people are sociopaths.

            That’s what Donald Trump is. He can pander to and rile up any group he wants to, and can make his faux outrage seem genuine.

          • 0 avatar
            Big Al from Oz

            Well, I’m to the right, but I’m no Donald Dump supporter. They guy is going to set the USA back decades.

            I do believe after watching him he has a personality disorder, narcissism. Genuine narcissism. I wonder how he will deal with other global leaders, especially when they deny Donnie Dump his wishes. Will have a narcisstic episode? The guy is unstable.

            The reason I believe he has narcissism is due his reaction to any negative stimulus directed at him regarding him.

            People like Big Trucks only state they like Donnie Dump for the shock and awe Big Truck uses to “sell” himself. Big Truck is a fraud, he definitely can’t believe the sh!t he puts forward.

            If Donnie Dump becomes President of the US of the A you will see many allies and friends pack up their bags and go home. The US will quickly lose it position as a leader in the free world.

            Foreign money will leave the US, tariff will be placed on US manufactured items if Donnie Dump makes the US insular.

            Donnie Dump sounds like a person full of fear and instilling his weakness into the US. Only the weak an fearful will vote for him. The losers, the meek.

            Donnie Dump shows poor leadership skills. He is a side show from some down trodden Hicksville hidden in the Ozarks.

        • 0 avatar
          mcs

          Theoretically, Trump would make it hard for the German competition to bring anything in. The Chinese plug-in hybrid CT-6 would also get nailed, although I’m sure it would be easy for GM to move production here since the conventional version is local.

          • 0 avatar
            Big Al from Oz

            mcs,
            You are most likely correct.

            The other side of the coin is no one will want US manufactured goods and services.

            The US started out as a commodity supplier, now it is a provider of goods and services. If the US screws around with trade, the US will come out worse. The US needs others to keep afloat.

  • avatar
    SCE to AUX

    “Musk even raised the specter of a conspiracy against his company while responding to reports of Model S suspension failure.”

    When NHTSA says that 37 out of 40 suspension complaints to them were fraudulent, what else can it be called except a conspiracy?

    • 0 avatar
      JimZ

      “When NHTSA says that 37 out of 40 suspension complaints to them were fraudulent, what else can it be called except a conspiracy?”

      I’d be surprised if it wasn’t just some trolls. “Conspiracy” implies an organized effort; if Musk wants to claim that then it’s on him, there’s no need for you to carry his water.

      • 0 avatar
        orenwolf

        A loose collection of trolls is still a conspiracy even if their intent is only lulz, but yes, I agree with you. It seems likely this is more about random douchbaggery than an organized effort to defraud.

    • 0 avatar
      probert

      It’s Niedermeyer – former TTAC editor and right wing zealot. I thought his love of French cars was a sign of deeply buried humanity, but I allowed my emotions to cloud my judgement. Viva Tesla, and long live the Gordon Keeble.

    • 0 avatar
      Pch101

      NHTSA never claimed that the claims were fraudulent. It hasn’t dismissed the claims, it’s investigating them.

      http://www.hybridcars.com/contrary-to-musks-suggestion-nhtsa-did-not-call-tesla-suspension-complaints-fraudulent/

      Beware of accepting Musk’s claims as gospel. He and the truth aren’t exactly the best of friends.

      • 0 avatar
        SCE to AUX

        From the link you cite:

        “More than 30 complaints were indeed posted with federal authorities by one man, Keith Leech of New South Wales, Australia.”

        So this fellow is using the NHTSA web site to troll Tesla, and he doesn’t even own one of their cars.

        I’m not saying there isn’t a core design problem – maybe there is. But I don’t blame Tesla or Musk for going after people like this with both barrels.

        How would you characterize someone who systematically posted complaints on the NHTSA site about Honda, Toyota, GM, etc, using fake VINs, and who doesn’t even own their product?

        • 0 avatar
          Pch101

          The point remains is that Musk is lying about what NHTSA said.

          NHTSA is not going to throw around the word “fraud”, nor is it going to dismiss a claim before it has been investigated. Even if the claims prove to be utterly false, it won’t be using the word “fraud” to describe them.

          Musk loves to hype the positive and to attack his critics, and everybody should know better than to take him at his word.

          If he had simply said that Tesla believes that the claims are baseless, that would have been fine. But the truth wasn’t good enough; he felt compelled to lie.

          • 0 avatar
            accord1999

            Yes, like the time Musk claimed the drive unit failures that famously knocked out Edmund’s Model S multiple times had been caused by a minor issue and was a $1 fix but drive units made after that continue to fail today. Or the time Tesla claimed a 5.4 star NHTSA safety rating which forced NHTSA to issue a statement denying that such a thing existed.

        • 0 avatar
          DenverMike

          Dollars to Donuts, Keith Leech also goes by “Big Al from Oz”.

  • avatar
    tresmonos

    assuming a 7 day work week, that’s 14-15 JPH. 20-21 JPH on a 5 day work week.

    Still very weak.

  • avatar
    Acd

    So does 100k/year get them to where they start making a profit from building cars?

    • 0 avatar
      heavy handle

      It gets them closer to profitability, if that’s what they want.
      It’s likely that their medium-term objective is achieving sufficient market penetration rather than generating profits. That’s what Amazon was doing for its first 10 years. They weren’t opposed to making money, but they used most of their cash flow to fuel more growth.

      Short version: 100K units is great if you just want to sell niche luxury cars, but it’s only a step on the ladder if you want to become a mainstream player.

  • avatar
    VoGo

    I wondered why Musk tweaked pricing by introducing a lower priced model, the S 60. Now I see why – he has increased production capacity markedly, and ahead of schedule.

    What would Detroit do with newfound capacity? Stuff the channel with tens of thousands of unwanted vehicles and dump them on the fleet market.

    There’s a difference.

    • 0 avatar
      accord1999

      Aren’t they just catching up with past estimates; they were supposed to be at 2000 by the end of 2015. But the disastrous launch of the Model X merely shows that Tesla are amateurs in the manufacturing game.

      The Detroit 3 probably would never run into newfound capacity since they have a decent clue on how much they can manufacture. Though if they did, I’m sure it’ll be quickly used to build as many fast selling pickups and SUVs/CUVs as possible.

      • 0 avatar
        Luke42

        Silicon valley management make a lot of “stretch goals”.

        It makes everyone work longer hours, and you can never tell if the company met the real goals unleas they tell you.

        It’s a doubly useful fog-of-war effect.

        • 0 avatar
          JimZ

          It also burns people out and makes them leave. High turnover is bad for a company like this, the continual brain drain and needing to train new people is a huge drag on time and resources.

  • avatar
    Big Al from Oz

    I believe Elon Musk is dreaming about the number of Tesla’s he can manufacture, let alone sell.

    I do believe Nissan is working on ethanol powered vehicles that will have a 373 mile range. These will be released in 2017.

    The advantage of the Nissans will be;

    1. Can use existing infrastructure for energy/fuel,
    2. One fuel load will give the Nissan the range of a normal vehicle,
    3. Time to “re-energise” will be rapid,
    4. The vehicle will use bio-ethanol,

    Seems like a far better and more logical solution than batteries. I wonder if Elon Musk’s Giga Factory will be left making batteries for the home?

    I wonder if Tesla and battery vehicles are the way to go?

    Batteries are not of any value, due to their weight, cost of research, ongoing subsidisation/handouts with no end in sight.

    I can’t see Tesla as a viable business. It might remain a “hobby” and niche product. Is Tesla worth it share price??

    Even the Giga Factory might not be able to secure a consistent, reliable source of minerals to make batteries.

    From Bloomberg today;

    http://www.bloomberg.com/news/articles/2016-06-14/nissan-spreads-bets-on-future-fuel-with-ethanol-run-electric-car

    • 0 avatar
      derekson

      Depends on what you mean by “worth” its share price. It’s worth its price on the stock exchange, but the price is massively inflated vs the actual worth of the company in rational terms. But the stock market is increasingly divorced from the reality of companies’ profitability and growth.

      • 0 avatar
        Big Al from Oz

        I don’t see the value in Tesla. It isn’t Apple, Google, Facebook or even Uber, actually Tesla will find it a lot tougher than Apple and the others.

        I’d say if Tesla created an “Uber/AirBnB” model of recharging, that is people can charge their vehicles at people home using a Smart phone to find the nearest charge point and people have the charge points easily accessed Tesla might do better.

    • 0 avatar
      Luke42

      My wife and I are eagerly awaiting our Model 3.

      It’s the first $42k (average transaction price) car I actually believe is worth the money. My wife commutes an hour each way, so giving her a comfortable car with low fuel costs and autopilot seems like a big win for us. I’ll get a Model Y for kid-hauling around town, if/when it becomes available.

      Tesla seems to be unique among high-dollar car brands in that they make their value proposition on technology and utility — rather than exclusivity. I can’t wait to get ours!

      As a prospective customer, I don’t have to think about Tesla like an investor. I just want to exchange money for a car. And there are about 372,000 other prospective customers who feel the same way.

    • 0 avatar
      redav

      “Ethanol powered vehicle” I read that article, and wow, that’s some stupid spit.

      Ethanol powered vehicles have been common for over a decade. Adding fuel cells doesn’t make their problems go away. What are those problems? Well for one…

      “Can use existing infrastructure for energy/fuel” – Do you mean the ethanol pipelines that don’t exist?

      “According to the U.S. Department of Agriculture, 90% of ethanol is transported by train or truck. The remaining 10% is mainly transported by barge, with minimal amounts transported by pipeline. To put this into perspective, a tanker truck can carry 8,000 to 10,000 gallons of ethanol, and one rail car can carry approximately 30,000 gallons of ethanol.
      “Delivering ethanol by pipeline is the most desirable option, but ethanol’s affinity for water and solvent properties require the use of a dedicated pipeline or significant cleanup of existing pipelines.”
      http://www.afdc.energy.gov/fuels/ethanol_production.html

      And are you comparing that ‘infrastructure’ to the one for electricity–you know, the grid that is connected to nearly every building in the US?

      Honestly, people need to lose the ‘one solution for every car’ mindset. EVs aren’t good for every application, just like every vehicle isn’t good for every application–and that’s OK. EVs are a great choice for urban/city/commuter vehicles, and there’s a huge market for commuter vehicles, so it’s a viable niche.

      • 0 avatar
        Big Al from Oz

        redav,
        I don’t know if I can agree with you. Electricity might be all over the US, but the re-charging infrastructure isn’t there, nor is a model to retail to the travelling public.

        I don’t see this ethanol Nissan as good as an ICE vehicle, but better than a battery powered vehicle.

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