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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Amid Production Headaches, Tesla Lays Off Hundreds: Report

Tesla employees jockeying for scarce parking spaces outside the company’s Fremont, California assembly plant and Palo Alto headquarters could soon find it easier to locate a spot.

The electric automaker reportedly laid off hundreds of workers this week — a move that comes at an particularly stressful time for the company and its employees. At just 260 units, third-quarter production of the long-awaited Model 3 sedan fell far short of predictions, with CEO Elon Musk blaming production bottlenecks for the slow trickle of highly sought-after vehicles.

Meanwhile, the exact nature of the fired employees is the subject of some debate.

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Tesla Delays Big Rig, Tries to Ramp Up Model 3 Production As Report of Hand-built Parts Surfaces

It’s been of week of bad PR and reports that should have Tesla investors tugging their collars and thinking twice, though in Teslaland these well-publicised issues only propel the automaker’s stock even higher.

The company’s electric big rig (aka the Tesla Semi), rumored to have a range of 200 to 300 miles, won’t see the light of day until November 16th, CEO Elon Musk claims. That’s two months after the initial reveal date, which was subsequently pushed back until late October.

The larger problem facing the company is the slow ramp-up of Model 3 production, which kicked off in July, but only resulted in only 220 deliveries by the end of September. The company forecasted 1,500 Model 3s in the month of September, with an expected production rate of 5,000 vehicles per week by the end of the year. Blame the slow trickle of cars on a “manufacturing bottleneck issue,” the company said in a statement.

As Musk attempts to soothe fears, a new report claims the automaker was hand-building parts away from the assembly line even as the high-tech facility was supposed to be cranking out Model 3s at a steady clip. Tesla is not happy about this report.

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Tesla Blames 'Production Bottlenecks' for Trickle of Backlogged Model 3s

While the venerable Tesla Model S and X reached more customers than ever before in the last quarter, the hotly anticipated and far cheaper Model 3 stumbled out of the gate.

In a quarterly statement released yesterday, Tesla says just 260 Model 3s made it off the Fremont, California assembly line between the launch of production in late July and the end of September. Of that number, 220 made it to customer driveways. That’s not encouraging news for investors, nor for the model’s roughly half-million reservation holders, some of whom were told at launch not to expect their vehicle until the end of next year.

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Tesla Hoping to Scrounge $1.5 Billion With Automotive War Bonds

Tesla Motors launched the Model 3 last month and has been scrambling to improve production volume as over 500,000 eagerly await delivery. However, by the time Tesla hits its targeted production rate of 10,000 units per week in 2018, it is still going to have months — if not a full year — of orders sizzling on the back burner.

It’s not the worst problem to have, since each reservation holder tossed down a $1,000 deposit. But CEO Elon Musk is aware that meeting demand is going to be an uphill battle. “We’re going to go through at least six months of manufacturing hell,” Musk told the press ahead of Model 3 launch event.

With the company already having spent over $2 billion in capital this year, restocking the safe is probably a good idea. As an upstart automaker framing itself as going into battle with traditional manufacturers, Tesla is issuing $1.5 billion in junky war bonds to fund the coming onslaught.

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With the Model 3 Out of the Bag, Tesla Investors Worry (While Musk Won't Stop Talking About 'Hell')

The production Tesla Model 3, revealed in full at a Friday evening handover ceremony, is an impressive vehicle, but it’s also the California automaker’s most important vehicle. With 220 miles of range in stripped-down base trim, or 310 miles for the starting sum of $44,ooo (the only version available at launch), the curvaceous sedan has no shortage of fans. It’s also facing no shortage of threats.

The company’s future as a mass-market “disruptor” of the American automotive landscape hinges on the Model 3’s trouble-free production at Tesla’s Fremont assembly plant, as well as timely deliveries to the half-million reservation holders. Unforeseen quality issues, a breakdown in the supply chain, or worker strife could all conspire to give the vehicle — and company — a black eye.

After a year spent giving investors everything they wished for, the company’s once-skyrocketing stock isn’t on the same firm ground as before. The first trading day after the event reflected this. Investors are nervous about a number of things: the model’s easily inflatable price, the company’s extremely lofty production target, and CEO Elon Musk’s repeated mentions of “hell.”

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Tesla Model 3 Launches at $44K in Long Range Form; Cheaper Version to Follow

Perhaps the most anticipated automotive event of the year (Tesla disciples might say millenium) took place in California last night, as electric car guru Elon Musk handed over the first 30 production Tesla Model 3 sedans to customers — most, if not all, of them employees — at a glitzy, livestreamed event.

Eyesight was restored to the blind. Others rose from their wheelchairs, walking for the first time in years. Okay, that’s not true, but the depths to which some Tesla fans deify Musk and his car company cannot be understated. Certainly, after seeing the final production model, learning its specifications, and hearing Tesla’s lofty production plans, even a cynic drowning in a vast ocean of media-driven hype can’t help but feel impressed.

Hailed as the first affordable, long-range, mass-produced electric car — a crown stolen by the Chevrolet Bolt months ago — the Model 3 will retail for $35,000 before federal incentives, but not just yet. The only version available at launch is the $44,000 Long Range model, good for 310 miles of range per charge.

The 220-mile base sedan, which carries that vaunted lower sticker price, won’t be available until this fall. So, what can the roughly 500,000 reservation holders expect? If they’re on a budget, black had better be their favorite color.

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First Production Tesla Model 3 to Appear This Week, Says Musk

Production of the Model 3 is set to begin two weeks ahead of schedule, according to Tesla Motors chief executive and second most famous Twitter user in America, Elon Musk. While that news would probably be more exciting if we had ever been given a definitive timeline for the vehicle, the CEO claims it should equate to the very first car rolling off the assembly line by the end of this week.

“Model 3 passed all regulatory requirements for production two weeks ahead of schedule. Expecting to complete SN1 on Friday,” Musk tweeted late last night, causing half a million Tesla fans to engage in a collective round of giddy, high-pitched squealing. However, the most enthralled members of the company’s rabid fan base are likely to be the 30 people who get to wrap their quivering digits around the steering wheel of their very own Model 3 before the end of July.

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QOTD: Do You Want a Tesla Model 3 or an Electric BMW 3 Series?

BMW intends to unveil an all-electric 3 Series at the Munich Auto Show in September, according to German business newspaper Handelsblatt.

Will BMW report the intake of hundreds of thousands of $1,000 deposits for an all-electric, next-generation BMW 3 Series? Probably not.

But which car are you more likely to purchase: a 3 Series EV from long-heralded BMW with roughly 250 miles of range, or the much-hyped, oft-discussed Model 3 from nascent Tesla, production of which should be in full swing by the time the 3 Series EV appears?

This may be the next Mustang vs. Camaro, a quasi Accord vs. Camry battle to end all Accord vs. Camry battles, an F-150 vs. Silverado skirmish without the 87 octane.

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Model Confusion, Losses and a Distinct Lack of SEX at Tesla

Tesla CEO Elon Musk isn’t getting any. By that we mean profits, as the electric automaker reported a $397 million first-quarter loss yesterday, adding to the red ink spilled in the previous quarter.

While the company’s revenue rose 18.4 percent in Q1 and deliveries climbed 12 percent, spending on Model 3 production more than offset the increase in cash flow. Musk took the loss in stride, playing the long game in a quarterly investors call, and claimed a combination of higher production numbers and lower operating costs will send those gray clouds packing.

Finances aside, the conference call yielded far more interesting topics, including details of the upcoming Model Y. Also, it seems people are becoming confused by Tesla’s naming strategy, and Musk has no one but Ford — and a dirty mind — to blame.

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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 Skips a Step, Goes Straight to 'Early Release' Model 3s

After deciding that its analytic tools are top-notch and will tell it everything it needs to know, Tesla is skipping the “beta” phase of the Model 3’s development cycle.

In a conference call to investors last week, Tesla CEO Elon Musk said the automaker doesn’t need to bother with that crop of pre-production models. Early release model 3s built on the company’s production assembly line — not specialty one-offs built in a corner of the shop — should be rolling by this week or next, he said.

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Tesla to Temporarily Halt Factory as Model 3 Pre-production Looms

Tesla is planning to halt vehicle production for one week in February to prepare for Model 3 pre-production, which the company says will begin February 20.

According to Reuters, the short-term shutdown of its Fremont, California assembly plant will give Tesla time to add capacity to its paint shop as it plans for full-scale production of the Model 3.

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EVs, Fanboyism, and Electrek's Slanted View of the Chevrolet Bolt

Since General Motors showed the Chevrolet Bolt EV Concept at the 2015 North American International Auto Show, the company has been adamant the car would compete with Tesla’s upcoming Model 3 in terms of pricing, range and certainly in terms of consumer adoption.

The Teslarati, on the other hand, don’t seem to agree.

Tesla’s stated modus operandi since inception is “to accelerate the advent of sustainable transport by bringing compelling mass market electric cars to market as soon as possible.” But for fans of the Silicon Valley brand the M.O has been twisted into Tesla or bust, leading to straw man arguments and arbitrary analysis.

Electrek’s latest Tesla versus Chevy op-ed by Fred Lambert is a perfect example.

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Chevrolet Hopes $37,495 Is Low Enough to Lure Buyers Into the Bolt

After revealing the 2017 Chevrolet Bolt’s surprising EPA-estimated range (238 miles), General Motors has now rolled out the price for its long-awaited electric car.

What will it take to get into Chevy’s EV? $37,495, which includes destination. A federal tax credit lowers that to $29,995, or five bucks below the “affordable car threshold” so sought after by EV builders.

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  • Lorenzo The Longshoreman/philosopher Eri Hoffer postulated "Every great cause begins as a movement, becomes a business, and ends up as a racket." That pretty much describes the progression of the United Auto Workers since World War II, so if THEY are the union, the answer is 'no'.
  • Redapple2 I think I ve been in 100 plants. ~ 20 in Mexico. ~10 Europe. Balance usa. About 1/2 nonunion. I supervised UAW skilled trades guys at GM Powertrain for 6 years. I know the answer.PS- you do know GM products - sales weighted - average about 40% USA-Canada Content.
  • Jrhurren Unions and ownership need to work towards the common good together. Shawn Fain is a clown who would love to drive the companies out of business (or offshored) just to claim victory.
  • Redapple2 Tadge will be replaced with a girl. Even thought -today- only 13% of engineer -newly granted BS are female. So, a Tadge level job takes ~~ 25 yrs of experience, I d look at % in 2000. I d bet it was lower. Not higher. 10%. (You cannot believe what % of top jobs at gm are women. @ 10%. Jeez.)
  • Redapple2 .....styling has moved into [s]exotic car territory[/s] tortured over done origami land.  There; I fixed it. C 7 is best looking.