By on July 10, 2019

After posting a stinker of a first quarter, Tesla entered into a training montage and managed record-setting production output in Q2 — helping nudge its all-important share price back in the right direction.

Now, internal documents have shown the automaker is trying to position itself to further boost production at its California factory and might even bring some new staff on board. Question the legitimacy of this “leak” if you must, but that won’t change Tesla’s ultimate goal of more volume and happier investors in Q3. 

According to an e-mail from the desk of Tesla VP Jerome Guillen intercepted by Bloomberg, the company is preparing to raise output in Fremont. “While we can’t be too specific in this email, I know you will be delighted with the upcoming developments,” he told employees. Not much of a bombshell but Tesla likely isn’t taking on staff out of the kindness of its heart.

From Bloomberg:

Tesla has said it plans to produce “significantly” more than the 360,000 to 400,000 vehicles the company expects to deliver in 2019. Output may reach 500,000 vehicles worldwide this year if its factory near Shanghai can reach “volume production” early in the fourth quarter, the company told shareholders in April.

Guillen wrote in his newsletter that several portions of the Shanghai plant are falling into place.

“The Stamping, Body, Paint, and General Assembly lines in China are well underway and hitting records in both line design and fabrication,” he said.

Guillen’s note urging employees to put the word out that Tesla is hiring may have come as a bit of a surprise. Musk announced plans to reduce headcount by about 7 percent in January and 9 percent in June 2018.

Some of those new hires will, no doubt, be helping build the Model Y crossover in 2020. But Guillen was intentionally vague with the details and requested that employees not share information with outside entities… you know, after telling them to spread the word about hiring.

“Do not share company information through email, Instagram, Facebook or Twitter. Leave that to Elon!” he wrote. “Once that information is public, feel free [to] retweet your heart out, share on IG or FB.”

Don’t worry, Jerome. We’ll keep a lid on things.

 

[Image: Nadezda Murmakova/Shutterstock]

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37 Comments on “Tesla Memo Suggest Production Boost Incoming...”


  • avatar
    Fred

    An analyst said this was a “conveniently leaked memo” and everyone smiled.

  • avatar
    indi500fan

    Musk continues to show his management genius. He hires execs from all these other outfits, sucks out the expertise, and then fires/starves/outplaces them to be replaced with low cost youngsters.

  • avatar

    How long it will take for Chinese to steal Tesla’s know how and start dumping marketplace with cheap Tesla clones. That happened with Dell when Dell created fierce competition to it’s own products and that’s how AsusTek was born.

    • 0 avatar
      mcs

      Things like the technology for gluing together the Halbach array for the motors and the battery cell tech are the big things, but I suspect they already have them.

      • 0 avatar
        highdesertcat

        I saw a segment about lithium battery design, manufacture and assembly on a program called “How It’s Made”. There’s lot that goes into making lithium batteries for BEVs.

        If the Chinese can improve upon the assembly of those batteries, like making assembly simpler, that would reduce the labor-intensive portion and require less precision. OTOH, labor is paid less in Asia. Maybe they should build the batteries and motors in Asia and ship them worldwide to BEV makers.

        If BEVs are ever to catch on with the general driving public, the manufacturers must reduce the price to the end-user. For a BEV to be a player, it must cost the consumer no more than an ICE vehicle in the same size and class. Parity.

        • 0 avatar
          Asdf

          I guess Tesla’s quality is so bad that it cannot get much worse, so using Chinese-made parts in Teslas assembled in the US wouldn’t ruin the Tesla brand to the extent it would have ruined other brands. It’s a bit of a moot point, though, as Tesla will go bankrupt before such a plan can be implemented.

      • 0 avatar
        MBella

        I didn’t realize they switched to permanent magnet motors until I read your post. Interesting concept with the Halbach array.

    • 0 avatar
      Vulpine

      @ILO: Strangely though, ASUS products are FAR better than Dell’s and have a reputation of reliability to support it. I’ve never worked on a reliable Dell and I’ve never owned a reliable Dell. Since I’ve retired, I won’t even touch a Dell unless I have no other choice.

      • 0 avatar

        Dell’s products are not made and even I dare to say designed by Dell. Dell architects the products but real design is executed by Chinese contractors. Before that they outsourced that to Taiwanese engineers and therefore ASUS was “inspired” by DELL. They designed motherboards for Dell specs. And they become very good in that.

    • 0 avatar
      tylanner

      But how would they steal the Supercharger network infrastructure?

      A Tesla has indelible value just by being a Tesla…not because it is an electric car….fundamentally different to the Dell scenario.

      • 0 avatar
        Asdf

        Tesla’s “Supercharger” network infrastructure is not an asset, but a liability, because this charger network consists of EXTREMELY SLOW Tesla-branded chargers, thus demonstrating to the world what UTTER CRAP Tesla’s products are.

        • 0 avatar
          Vulpine

          @Asdf: Sorry to rain on your parade, my man, but the Tesla Superchargers are still the fastest network of chargers in most countries; the CCS and CHAdeMO chargers on average are half the charging rate with only a very few so-called “high-speed” chargers in operation at this time.

          • 0 avatar
            Asdf

            That’s a bit like bragging about having the fastest turtle in the neighborhood – that turtle will still be painfully slow.

          • 0 avatar
            Vulpine

            @asdf: You haven’t seen how a turtle can MOVE when it wants to. Faster than you think, though admittedly only slightly above human walking pace. On the other hand, the Tesla Model S can charge 100 miles in less than 8 minutes; that’s hardly “painfully slow” and still double and more the speed of the average non-Tesla charger.

            Again, those so-called “high-speed chargers” on the other networks are few and far between. Sure, some cars claim 80% charge in 30 minutes but they also tend to have small batteries where that 80% charge is only 100 miles.

          • 0 avatar
            Asdf

            Nobody would accept spending a whopping 8 minutes to refuel 5 gallons (a 20 mpg car), 3.33 gallons (a 30 mpg car) or 2.5 gallons (a 40 mpg car) only to get a very modest 100 mile range on an ICE-powered car. Most people would find a gas pump like that PAINFULLY SLOW. There’s no reason to expect people to have lower expectations only because the gas tank has been replaced with a battery, that would be outrageous and unreasonable. Therefore, contrary to your assertion, the Tesla charger IS painfully slow – regardless of whether there are other chargers out there that are even slower.

          • 0 avatar
            Vulpine

            @asdf: Funny thing about that, dude… People are already accepting the time spent, every day, around the world, including the US. So maybe YOU won’t accept it but obviously some are and I fully expect to see more–especially since they don’t have to go out and refuel once a week or whatever. I would guess that the majority never go out to refuel at a public charger since all they need to do is plug in when they get home at night and unplug before they leave in the morning.

          • 0 avatar
            Asdf

            BEV owners have no CHOICE but to lower their expectations and accept the unacceptable (e.g. through post-purchase rationalization or by clinging to the climate change hoax and engaging in virtue signalling), because that’s the only way they can get their DEFECTIVE BEVs to work at all. That doesn’t make it any less outrageous, unreasonable or unacceptable.

          • 0 avatar
            Vulpine

            Poor boy. You simply don’t understand. They don’t have to stop for fuel every few days. So it doesn’t matter if your gas stop takes ten seconds or ten minutes. Even on a road trip, they can go up to seven hours of driving before they need to recharge and after seven hours of driving, they’re not going to want to just hop out, refuel and hop back in for another seven hours. They’re going to want to take care of nature, get something to eat, drink, maybe stretch their legs a bit and THEN get back on the road! That ten minutes of standing at the pump (or ten seconds) is wasted time–idle time they could use better elsewhere.

          • 0 avatar
            ToddAtlasF1

            Reading this last response gives me the impression that there is a correlation between EV acceptance and not understanding relationships between time and distance.

          • 0 avatar
            Asdf

            @Vulpine: You’re spouting mcs style nonsense here. The scenarios you describe merely constitute examples of circumstance compensating for a technological defect, and are therefore irrelevant to the issue at hand. It would have been just as nonsensical to say that it doesn’t matter that the windscreen wipers don’t work because you can use the car when it’s not raining, that too would have been an example of circumstance compensating for a technological defect.

            At the end of the day, the reality of the EXTREMELY LONG charging times is still there, no matter what desperate spin you try to put on reality.

          • 0 avatar
            Vulpine

            @asdf: That may be the way YOU see it, but I see it as taking advantage of an opportunity. Therefore, the irrelevance is yours since the issue ONLY shows up once or twice a year on average, whereas YOU have to get out in the weather at least once every other week, rain, snow, sun or whatever, to refuel your gasser; something a BEV driver doesn’t have to worry about.

      • 0 avatar
        Middle-Aged (Ex-Miata) Man

        “A Tesla has indelible value just by being a Tesla…not because it is an electric car….fundamentally different to the Dell scenario.”

        I don’t think it’s very different at all. Dell was once a very powerful brand, too, until it was outflanked by companies that offered comparable (often better) products for less money.

    • 0 avatar
      Asdf

      Tesla’s know-how? Tesla doesn’t even know how to build competitive BEVs, which is what it specializes in! The Chinese specialize in building cheap, useless crap, and should be able to out-Tesla Tesla with that knowledge alone.

    • 0 avatar
      Guitar man

      Why would they need to “steal” it ? The Chinese Tesla factory is owned entirely by Chinese creditors.

  • avatar
    SCE to AUX

    “Question the legitimacy of this “leak” if you must, but that won’t change Tesla’s ultimate goal of more volume and happier investors in Q3.”

    True. Tesla doesn’t just want to increase volume, they *must* increase volume. Whatever profit is made by the S and X is nearly meaningless; the 3’s volume and profitability are the real keys to long term survivability. TSLA share price is secondary.

  • avatar
    cprescott

    Increasing production means nothing if the build quality is so bad that at least 70% of what is produced goes to a lot to rework the car so it can be sold. This is a fact in one of the business magazines earlier this year. After watching enough Tesla sycophants’ youtube videos passing over the pathetic quality that they receive, it might not matter if any cars are parked to be reworked. It appears that Tesla buyers will tolerate a level of automotive quality not seen since the Big Three shoveled out garbage in the 1970’s.

  • avatar
    EBFlex

    The best part is people believe this nonsense. And they take it as some sort of indicator that Tesla is a legitimate company.

    The business is a house of cards and the products are crap.

  • avatar
    incautious

    blah blah blah.”Leaked emails” more BS for the king of BS who will do anything to prevent a margin call on the nearly Billion borrowed against his shares. Don’t see any new job postings on the tesla site. Paint shop is the big bottleneck for increasing production. With these cars now getting $1875 more expensive and more and more competitors coming on line, cant’ see any huge demand push. S and Y selling in feeble numbers. Service and parts availability still a major nightmare.

  • avatar
    tonycd

    This company is so incapable of managing the logistics of a car factory, the only reason is has one is because GM and Toyota built one for them and then left it empty for them to pick up virtually cost-free. When it came time to expand it, these guys literally tried to do it by building a tent. Anybody who buys either their cars or their shares at this point is either an illiterate or a masochist.

  • avatar
    Vulpine

    @tonycd: Might I recommend some research on the number of hard-shell buildings Tesla has added to the property? You seem to be sorely lacking on facts.

  • avatar
    HotPotato

    I wish Tesla would go private. Then they wouldn’t have to dangle shiny objects (self-driving this! pickup-truck that!) in order to keep the ADHD-riddled junior-high drama class known as the “investor community” interested, and could focus on the only two things that matter right now: 1) getting Model 3 production volume up, and 2) launching a Model Y based heavily on the Model 3.


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