Tesla, Free of Model X Production Constipation, Hits 100,000 Unit Annual Production Rate

by Steph Willems

June 14th, 2016 2:13 PM

tesla free of model x production constipation hits 100 000 unit annual production

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.

#Assembly #ElonMusk #Production #ProductionTargets #Tesla #TeslaModel3

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VoGo on Jun 14, 2016

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.

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- Accord1999 on Jun 15, 2016
  
  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.
  
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- Luke42 on Jun 15, 2016
  
  @accord1999 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.
  
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- JimZ on Jun 15, 2016
  
  @Luke42 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.
  
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Big Al from Oz on Jun 15, 2016

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

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- Derekson on Jun 15, 2016
  
  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.
  
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- Luke42 on Jun 15, 2016
  
  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.
  
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- Redav on Jun 15, 2016
  
  "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.
  
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- Big Al from Oz on Jun 15, 2016
  
  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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- Big Al from Oz on Jun 15, 2016
  
  @derekson 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.
  
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