Bloomberg's Inside Look At Tesla's Model 3 Factory (bloomberg.com)

An anonymous reader shares an excerpt from an exclusive inside look at Tesla's Model 3 factory in Fremont, California: On the Model 3 body line on a Tuesday afternoon in early June, everything is still. Tesla is just coming off a week of downtime during which workers added a new production line, improved ventilation after a fire in the paint shop, and overhauled machines across the factory. But even after the changes, there are kinks to work out. Suddenly, dozens of robots snap into frenzied action, picking up door panels, welding window pillars, taking measurements, and on and on. This robotic dance is a visceral representation of what Tesla chief executive Elon Musk has dubbed "Alien Dreadnought," a code name for the factory that evokes an early 20th century warship, but with extraterrestrials.

The stakes couldn't be higher for Tesla, which is sprinting to produce the Model 3 in quantities great enough to turn a profit. But so far, the plant's choreography has been choppy. The flow at the factory in Fremont, California, is constantly interrupted while robots and humans are trained, retrained, or swapped out. If Tesla can't make this dance work, it will be remembered as a lesson in the dangers of irrational exuberance for automation. Success, on the other hand, could transform the car industry.

Comments

I think they'll succeed even if they fail

[Kjella]

Take Amazon, it had the most ridiculous negative P/E ever. At the height of the dotcom boom I got a free $10 that I used to buy a $4 book with $6 shipping (international). How the fuckity fuck fuck to you make money on that? By staying the course with enough VC money that eventually you'll surface. That's kinda what I'm thinking about driverless cars at the moment, even if it doesn't make sense... even if they never recover their investment... there's so much money and so many corporations behind it that it'll happen. When I'm a senior citizen in 25+ years I'll have a self driving car. I'm probably not going to Mars, but that's okay. And the singularity is not happening. Immortality certainly not. You have a life, enjoy it.

Re:I think they'll succeed even if they fail

[sfcat]

Amazon stands on top of its market, regardless if EV and self driving cars take off Tesla will only have a small part of the pie ... Amazon's money was better spent.

Keep telling yourself that. Where are all those batteries for those other car companies EVs coming from again? You can't just put a bunch of laptop batteries into an EV and sell them for a profit (anymore). You need to use a type of battery cell with a cost below a certain price point (about $150 per Kwh I believe) and nobody else currently is doing that. Hell, there aren't even plans to make a non-Tesla factory to build such batteries. Telsa will have at least a 5 year head start on the rest of the car companies and by that time, it will already be over. GM loses money on every Volt and Bolt sold and that won't change unless they start making their own batteries at scale. GM makes a small number of EV batteries at very high cost currently and GM has no current plans to scale up to the point where they can make those cars economically.

Also, you are betting that people want to buy cars from car dealerships (really, never bought a new car have you).

Finally, you are betting that car companies will entirely change their basic culture and start making EVs. Go to any car company's HQ and talk to the employees and the real problem will come into view. These folks simply don't want to change. And by the time they figure out how completely fucked they are, it will be entirely too late. It happened with every other type of business when a new business model becomes viable. The old guard gets crushed. It happened with Walmart vs Amazon. It happened with MS vs Google. It happened dozens of times before that in many industries including many industrial businesses. It will happen again, its one of the few patterns in life that happens with such high certainty.

Quality Control

[tgibson]

I don't follow Tesla closely; I found it an interesting read. Having just rid myself of a lemon (not Tesla), I was impressed with this excerpt:

Tesla says it has 47 robots deployed in scanning stations throughout the body line. They measure 1,900 points in every Model 3 to match them to design specs—with a precision of 0.15 millimeters. Torque measurements are also automatically recorded for every bolt that’s fastened. During the final test drives on the track, sound recorders measure squeaks, rattles and wind and road noise that a test driver might miss. All of this data is stored with each car’s unique Vehicle Identification Number, or VIN, so service centers can trace any issue back to a root cause in the factory. The idea is that Tesla will be able to improve its cars, even after they're in a customer’s driveway.

I hope they succeed and force other carmakers to follow suit.

Re:Bloomberg? Why?

[Rei]

The exact quote is: "Despite our production difficulties, all parts of the Model 3 production system have demonstrated a 500 car per day capability, or, a 3500 car per week capability, and we just did a big set of upgrades and are spooling up the production lines again. I think it's quite likely that we will achieve a 5000 cars a week by the end of the month."

This was with 2 GA lines (the biggest bottleneck). They just built a third.

I don't think there's any malice in the Bloomberg tracker. I think it's just hindered by too long of an averaging period on their algorithm. It averages in planned line downtimes in with line production rates, which you don't want.

Profit vs. achievement

[RonLillycrop]

It strikes me that somehow Elon Musk has managed to chase principled objectives completely independent of financial performance and in a way that has completely fooled the people with the control of money to parting with what they have. Here's hoping that the ruse persists since the actual impact goes way beyond making people some money.