Forget Nevada? Tesla Looks to Fremont for Model Y Production
After claiming, via official channels, that its Nevada Gigafactory would likely become the site of Model Y production, Tesla seems to have changed its mind on where to build its upcoming crossover.
During a weekend podcast, Tesla CEO Elon Musk said production of the vehicle will likely take place where all other Teslas are built. It might not even require a tent.
As reported by Bloomberg, Musk’s remarks came during a recent “Ride the Lightning” podcast hosted by Model 3 owner Ryan McCaffrey. Forgive this writer for avoiding said podcast like the plague.
“Right now our default plan actually is to produce the Y at Fremont,” Musk said. “I was skeptical about whether this made sense at first but my team convinced me the fastest way to get to volume production is to do the Y at Fremont.”
In April, Tesla and battery partner Panasonic froze plans for further spending (and expansion) at the automaker’s Nevada Gigafactory. At Fremont, home of the Model S, X, and 3, Tesla ramped up production of the Model 3 last year by employing an assembly line built in an outdoor tent. It seems the Model Y, which boasts a slightly larger footprint than the Model 3 and slightly reduced range, may avoid a similar fate.
According to current and former employees who spoke with CNBC, Tesla plans to move assembly of the Model S and X to a single line, freeing room for indoor Model Y production. Both models have seen sales crater in the wake of the cheaper Model 3’s release. The same employees claim the company no longer employs nighttime or weekend shifts for the production of these models, adding that Model Y equipment orders have barely begun.
Following last quarter’s dismal deliveries and earnings reports, as well as a share price that dropped precipitously, Tesla claims it will clamp down on unnecessary spending even more. At the same time, the company sought to raise over $2 billion via a sale of stock and convertible notes. Cash raised, Musk reportedly said, will tide the company over for 10 months.
The Model Y is expected to reach production in late 2020.
[Image: Tesla]
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With falling volume of sales, it makes sense to consolidate production at Fremont. It seems to me that Tesla’s biggest problem is that almost all of the “early adopters” have adopted. Here in Los Angeles, new cars get a paper registration number until the metal plates arrive. I have seen many Model 3 that are brand new, but I haven’t seen any new Model S or X in weeks. I wonder how those sales are going?? With very limited refresh to Model S and the fact that most were purchased (not leased, due to banks’ inability to forecast resale values), why buy a new one after 3 or 4 years? As to the Model X, I have two acquaintances who have dumped theirs, due to disgust with the gull wing doors, both problems with closure and problems with passengers whacking their heads on entrance and egress.
Off-topic but may be of interest to a few here. An acquaintance with a Model S P90D made some runs at the local strip last month. Three passes all 12.43 to 12.45 for 1/4 mile.. No info on trap speed. Each pass drained ~2% from the battery. For reference a Dodge Viper turned a best of 12.9 at the same strip and with times much less consistent between runs.