Whistleblowing Tesla Engineers Say Model 3 Batteries Being Made by Hand, Slowing Production, Creating Potential Fire Hazard

Tesla’s Model 3, described by many as a make-or-break product for the EV startup, has had a very slow launch, with production falling far short of the numbers Tesla had predicted.

CNBC is now reporting that, according to current and former Tesla employees, one of the factors in the launch delay is the failure of Tesla’s battery “Gigafactory” in aptly named Sparks, Nevada to come up to speed. Ironically, the highly automated factory apparently needs so much human hand work that Tesla has had to “borrow” dozens of employees from its partner in the facility, Panasonic.

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Despite Hurdles, Tesla Promises a Semi Truck for Thursday

Unbothered by the constraints of space and time, Elon Musk took to Twitter yesterday, breathlessly announcing a press conference for Thursday. Is the call’s topic set to address Model 3 production troubles? Or, perhaps, provide some insight into the supply chain woes at the Gigafactory? No, dear reader, nothing so mundane.

It’s to announce the Tesla semi truck, which is surely the most urgent topic and best use of resources at Tesla these days.

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Tesla Shares Slip as Elon Musk's Reassurances Fall Flat

It’s now Tesla that’s been disrupted.

For all of the Silicon Valley speak about “disrupting” the automotive industry, and despite some very interesting successes in doing just that, Tesla is still struggling to actually get cars to market.

That’s understandable to an extent – the company is small, with limited experience. But CEO Elon Musk has talked a big game, and thus far not delivered on his promises.

Wall Street, predictably, has noticed.

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Tesla Production Troubles May Be Continuing Due to Design Changes, Hiring Issues [UPDATED]

Tesla’s Model 3 production problems are well documented, including the recent firings/layoffs. Now we’re hearing that while Tesla has conceded it has production “ bottlenecks” (and blamed some of the issues on suppliers failing to meet their deadlines), the company may also be shooting itself in the foot with mismanagement.

A TTAC reader with insider knowledge claims a design change to an aluminum frame component has idled production for nearly two weeks. In addition, an Indeed.com job posting from about 45 days ago sought temporary contract workers to program the robots on the assembly line.

That last bit is notable, as typically the hiring for that job would have wrapped up much sooner in advance of the production launch.

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It's Time to Figure Out What's Going on at Tesla Motors

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.

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Consumer Reports and Tesla Feud Continues Over Model 3

Tesla Motors and Consumer Reports have enjoyed a fairly contentious relationship with each other over the last few years. The nonprofit consumer advocacy organization had previously slighted the Model S for being unreliable and unsafe, but upgraded that analysis as Tesla continued improving the model. In this year’s consumer survey, the model received higher marks —receiving “above-average reliability for the first time ever.”

However, the Model X suffered a dismal showing and Tesla was outraged that CR gave the Model 3 a predictive average reliability score without even having driven it. The publication was quick to respond, however, and suggested the manufacturer may have misunderstood what was a fairly positive rating for an unproven platform.

While the exchanges seem somewhat trivial and maybe a little petty, this is the kind of automotive drama that’s simply too fun to ignore. For whatever reason, Tesla seems unwilling to remain silent whenever some bad publicity heads its way. While it’s far from the only automaker to do this, its relationship with Consumer Reports has been filled with very specific ups and downs.

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No Fixed Abode: The Case For Tesla

Last week I showed you how some electric car “journalists” were reaping massive rewards for recommending Tesla over other electric cars. I also showed you how poorly they reacted to being found out. My coverage of Electrek’s Fred Lambert ended up being linked, referenced, or just flat-out copied in outlets as diverse as the WSJ and Zero Hedge.

As I had feared, however, most of the aforementioned media sources used my articles as stones on which to grind their ax, not mine. My concern was with the ever-more-permeable wall between automotive journalism and outright PR/promotion; theirs was with Tesla as an automaker and/or business entity. For me, this was a story about double dipping, but for them it was yet another example of reality distortion on the part of Elon Musk and his secretive cabal.

There are plenty of Tesla skeptics out there, including this site’s august founder, who once referred to Model S early ordering as a “Ponzi scheme,” and two former Editors-In-Chief of TTAC. I’m not one of them. Sure, I’m happy to admit that the company has a long history of playing fast and loose with the facts, and I’ll also freely stipulate the idea that Tesla as a whole is so entirely dependent on government subsidies as to be completely unviable without the steady drip of corporate welfare. What I want to suggest to you is that none of that matters, as conclusively proven by a series of trips I recently took to Western Europe and Northern California.

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Truth in Numbers: Tesla Motors Kind of Lied to Us

Yesterday, we mentioned how Tesla was behind schedule with its everyman Model 3 — delivering only 220 units to the half-million reservation holders since the start of production in late July. While we knew it would get off to a slow start, CEO Elon Musk previously assured the public that production would increase exponentially through the end of the year by way of a “ production hell” trial by fire.

Musk claimed there should be “zero concern” about Tesla achieving a production rate of 10,000 cars a week before the end of next year. But many wondered if that was even possible. Despite Tesla making serious strides to increase production volume this year, we remained dubious that the proposed numbers were even feasible for a fledgeling automaker.

As it turns out, they weren’t — and the company knew it.

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It's Time to Talk About Tesla With Sanity

Before joining the gang at TTAC, I was freelancing, and a lot of my work centered around electric vehicles. Which means I was reading and writing a lot about Tesla, especially during that time a few months ago when the small California-based automaker somehow became the most valuable automaker in the world, at least from Wall Street’s perspective, based solely on its potential.

Some of my work took me into the depths of the pro-Tesla blogosphere. While these sites can serve as valuable sources for news about the company, they also have an unabashed pro-Tesla stance. Objective, they (mostly) ain’t.

And that’s okay – while many, if not most, media outlets default towards being as objective as possible, there’s no rule stating that your blog or outlet has to be objective. It’s okay for HuffPo to be leftist and National Review to lean right. And so it is with outlets that cover Tesla – no one expects Teslarati to be critical of the brand.

It’s one thing to have pro-Tesla blogs, of course, but another to be unable to even talk about the brand without dividing into two tribes – the fanboys who think Tesla is the best company ever and can do no wrong (as it disrupts the industry and solves every one of the world’s problems), and the “haters” who think that Tesla is doomed to fail any day now and it’s a minor miracle the company has lasted this long.

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Like Mercury, Tesla Pricing Is in Retrograde

August saw Tesla Motors slashing prices on practically everything that wasn’t the Model 3. The automaker has a history of endless shifting trims and pricing, and the most recent round of changes focused entirely on top-spec versions of the Model S and Model X. Earlier this month, base-model MSRPs received a haircut.

Assumedly, the automaker wants to move its existing inventory while production of the Model 3 progresses towards the coveted 500,000-units-per-year mark. Yet that ambitious goal is still miles away.

Tesla has been hesitant when it comes to providing sales figures and, while it has begun releasing delivery numbers on a quarterly basis, making monthly estimations is extremely difficult. The automaker said it hit its target of 47,000 units for the first half of 2017 but also referenced a “severe production shortfall” that hindered sales during the second quarter. It plans to make up the difference through the rest of the year and the pricing shift is likely to play a factor.

How much are you saving, exactly, if you buy a Tesla now?

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Tesla Dumps Model S 75 RWD to Make Space for the Model 3

Tesla Motors changes its lineup more frequently than I replace my soiled bed sheets and, with the Model 3 fast approaching, it’s tweaking things yet again. This time the manufacturer is getting rid of the rear-wheel drive variant of the Model S 75, leaving the all-wheel version as the new base-trim — presumably to make room between its $74,500 price tag and the $35,000 Model 3.

This move also streamlines production, as eliminating the RWD car results in the Model S being an exclusively AWD build. However, that doesn’t mean the upscale sedan will be slim on options. Tesla has claimed the Model S will maintain gobs of premium features, unimaginable on the Model 3, for a grand total of 1,500 possible configurations. Do you need that much choice? Probably not. But you have to differentiate yourself from the plebs in the more-common EV somehow — apparently, superior size, speed, and free access to the company’s charging network isn’t enough.

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Elon Musk Plans to Perform the Same Tasks as Tesla's Injured Workforce

Elon Musk has taken some rather extreme measures to ensure Tesla Motors’ employees don’t unionize. The CEO has a rigid production schedule he hopes to adhere to and doesn’t want organized labor throwing unforeseen variables into the mix. However, the UAW has made headway in the last twelve months after half-heartedly courting Tesla’s workforce for years.

Musk’s initial opposition came by way of written rebuttals to very specific criticisms regarding workplace safety and pay. He later accused a particularly aggressive critic of being a paid union stooge. Musk then hinted at the prospect of free frozen yogurt and roller coasters once the company approaches profitability.

Now, he’s apparently decided to reenact the circumstances of specific work-related injuries to prove the company is taking the appropriate safety precautions (or to sniff out areas needing improvement). It’s bizarrely parental but also kind of endearing, if you forget about the union angle.

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Tesla Ousts Supplier's Management and Sweetens Pay Deal to Avoid German Strike

Tesla Motors has smooth-talked its Californian workforce out of unionizing for some time, but the labor war is now being waged on two fronts.

Since acquiring German supplier Grohmann Engineering, that company’s workforce has accused Tesla of unfair wages and dissolving established business ties to focus solely on the upcoming Model 3. Elon Musk was forced to personally reassure Grohmann, now called Tesla Advanced Automation Germany, to keep it from syncing up with autoworkers’ union IG Metall and going on strike.

Since the supplier is an essential part of the Model 3’s timely production, Tesla has changed tactics and is now throwing more money at Germany and promising extra jobs in the hope of avoiding work stoppages. It also apparently removed the company’s CEO and founder, Klaus Grohmann, after repeated clashes with Musk over the firm’s future.

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Elon Musk Clarifies Tesla Model 3 Won't Outperform Model S

Tesla founder Elon Musk recently cleared the air in regards to the automaker’s upcoming Model 3 sedan, telling his Twitter followers the more budget friendly Tesla won’t outperform the Model S.

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Tesla Kills 'Affordable' 60 KWh Model S as Model 3 Approaches

Tesla is taking its most affordable model off the market next month. In order to “simplify the ordering process,” the automaker has decided to abandon the Model S 60 and 60D, according to its official newsletter.

It hasn’t even been a full year since the 60kWh trim returned after the more-expensive Model S 70 replaced it in 2015. Good riddance.

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  • CanadaCraig You can just imagine how quickly the tires are going to wear out on a 5,800 lbs AWD 2024 Dodge Charger.
  • Luke42 I tried FSD for a month in December 2022 on my Model Y and wasn’t impressed.The building-blocks were amazing but sum of the all of those amazing parts was about as useful as Honda Sensing in terms of reducing the driver’s workload.I have a list of fixes I need to see in Autopilot before I blow another $200 renting FSD. But I will try it for free for a month.I would love it if FSD v12 lived up to the hype and my mind were changed. But I have no reason to believe I might be wrong at this point, based on the reviews I’ve read so far. [shrug]. I’m sure I’ll have more to say about it once I get to test it.
  • FormerFF We bought three new and one used car last year, so we won't be visiting any showrooms this year unless a meteor hits one of them. Sorry to hear that Mini has terminated the manual transmission, a Mini could be a fun car to drive with a stick.It appears that 2025 is going to see a significant decrease in the number of models that can be had with a stick. The used car we bought is a Mk 7 GTI with a six speed manual, and my younger daughter and I are enjoying it quite a lot. We'll be hanging on to it for many years.
  • Oberkanone Where is the value here? Magna is assembling the vehicles. The IP is not novel. Just buy the IP at bankruptcy stage for next to nothing.
  • Jalop1991 what, no Turbo trim?