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KarelXWB
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Tesla misses Model 3 production goals by large margin

Tue Oct 03, 2017 3:37 pm

Tesla blamed "production bottlenecks" for the weaker production.

Tesla Inc. TSLA -0.44% badly missed its goal of building 1,500 Model 3 cars in the third quarter, the first sign that the production ramp-up for the new sedan isn’t going as smoothly as planned.

The Silicon Valley electric-car maker built 260 of the Model 3s between July and September, the company said Monday in a statement. In August, the auto maker predicted it would build more than 1,500 Model 3s before cranking up production to 5,000 a week by the end of the fourth quarter.

...

“It is important to emphasize that there are no fundamental issues with the Model 3 production or supply chain,” Tesla said in a statement. “We understand what needs to be fixed and we are confident of addressing the manufacturing bottleneck issues in the near-term.”

When Mr. Musk touted the new cars in a July celebration, he warned the first six months of production could be “manufacturing hell” as its Fremont, Calif., factory learns how to build the new vehicle.


Article
https://www.wsj.com/articles/tesla-miss ... 1506976496
What we leave behind is not as important as how we've lived.
 
Flighty
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Re: Tesla misses Model 3 production goals by large margin

Tue Oct 03, 2017 7:51 pm

I haven't had this much fun watching production since the 787.

Like the 787 and A380, production will be ironed out. The market's thirst for the product (?) will be met. The miracle of series production. In this case they are sweating blood to deliver a great product. Can't get too mad about that. Many organizations are too lazy to do great things.

As for predictions, I bet they have a good "stopgap" production method by end of December, with mature production method around June 2018. But it could easily be later than that.
 
dtw2hyd
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Re: Tesla misses Model 3 production goals by large margin

Wed Oct 04, 2017 1:51 am

Any idea what kind of production problems they are having. Hope it is not related to CBSN ON Assignment story.
 
Kiwirob
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Re: Tesla misses Model 3 production goals by large margin

Wed Oct 04, 2017 6:42 am

I wouldn't want to be an owner of one of the first Model 3's.
 
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Tugger
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Re: Tesla misses Model 3 production goals by large margin

Wed Oct 04, 2017 4:54 pm

Kiwirob wrote:
I wouldn't want to be an owner of one of the first Model 3's.

That is why the first ones are going to employees who purchased them.

Tugg
I don’t know that I am unafraid to be myself, but it is hard to be somebody else. -W. Shatner
 
fraport
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Re: Tesla misses Model 3 production goals by large margin

Tue Oct 10, 2017 2:49 pm

Kiwirob wrote:
I wouldn't want to be an owner of one of the first Model 3's.

I wouldn't want to be an owner of any car from the first production year. Don't like to be a test driver.
 
Flighty
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Re: Tesla misses Model 3 production goals by large margin

Wed Oct 11, 2017 1:28 am

fraport wrote:
Kiwirob wrote:
I wouldn't want to be an owner of one of the first Model 3's.

I wouldn't want to be an owner of any car from the first production year. Don't like to be a test driver.


Completely correct. You can save money and gain quality by being opportunistic, buying legacy hardware of known quality.
 
jetwet1
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Re: Tesla misses Model 3 production goals by large margin

Wed Oct 11, 2017 3:04 pm

jetwet1 wrote:

If production can ramp up as is planned (I seriously doubt it btw) then there is a 2 year backlog, which will drop very quickly once they are up to speed.


Pat myself on the back for calling that one....

Anyways, I am hearing that there has been 3 major headaches.

QC on some fasteners (not supplied by Boeing FYI)

The painting of the cars is causing some small headaches (The model S had major issues with the paint for a while, to try to get this right out of the gate with the 3 the total process takes about 2 hours)

The workforce (robots) is having some issues with the manufacturing process, this is the major bottleneck, once they get them sorted and up to speed then a lot of the issues go away, though it will put more strain on the paint area which is space limited, though it was expanded at the end of last year.
 
JJJ
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Re: Tesla misses Model 3 production goals by large margin

Sat Oct 14, 2017 7:04 pm

Tesla fires hundreds after company-wide performance reviews
Company says it will replace most workers

http://www.mercurynews.com/2017/10/13/4819750/

Worse than expected?
 
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Aesma
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Re: Tesla misses Model 3 production goals by large margin

Sat Oct 14, 2017 8:04 pm

The car is mostly made out of steel so it shouldn't be that difficult to paint.
New Technology is the name we give to stuff that doesn't work yet. Douglas Adams
 
Flighty
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Re: Tesla misses Model 3 production goals by large margin

Sun Oct 15, 2017 6:10 am

Paint (and rust proofing) is not that easy for manufacturers to get right. I would be surprised if Tesla knows what they are doing prior to June 2018. After that, the cars might be decent.

The layoffs appear to have been a dickhead move.
 
Kiwirob
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Re: Tesla misses Model 3 production goals by large margin

Sun Oct 15, 2017 2:08 pm

JJJ wrote:
Tesla fires hundreds after company-wide performance reviews
Company says it will replace most workers

http://www.mercurynews.com/2017/10/13/4819750/

Worse than expected?


I guess this is what happens when you have a workforce who aren’t unionised, makes it easy to can them.
 
WIederling
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Re: Tesla misses Model 3 production goals by large margin

Sun Oct 15, 2017 2:26 pm

Kiwirob wrote:
I guess this is what happens when you have a workforce who aren’t unionised, makes it easy to can them.


Unionizing does not increase worker competence. More like the reverse.
Murphy is an optimist
 
Kiwirob
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Re: Tesla misses Model 3 production goals by large margin

Sun Oct 15, 2017 6:02 pm

WIederling wrote:
Kiwirob wrote:
I guess this is what happens when you have a workforce who aren’t unionised, makes it easy to can them.


Unionizing does not increase worker competence. More like the reverse.


But this appears to be a mass layoff, employees terminated without any prior warnings, something that’s not allowed in most countries.
 
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KarelXWB
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Re: Tesla misses Model 3 production goals by large margin

Mon Oct 16, 2017 10:26 am

JJJ wrote:
Tesla fires hundreds after company-wide performance reviews
Company says it will replace most workers

http://www.mercurynews.com/2017/10/13/4819750/

Worse than expected?


Heads are rolling. At least 400 workers lost their job due to "underperformance".
What we leave behind is not as important as how we've lived.
 
dtw2hyd
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Re: Tesla misses Model 3 production goals by large margin

Mon Oct 16, 2017 10:55 am

Kiwirob wrote:
WIederling wrote:
Kiwirob wrote:
I guess this is what happens when you have a workforce who aren’t unionised, makes it easy to can them.


Unionizing does not increase worker competence. More like the reverse.


But this appears to be a mass layoff, employees terminated without any prior warnings, something that’s not allowed in most countries.


There is always performance-related terminations loophole in most countries. Every Friday get rid of a few slightly below legal reporting requirement. With most states being right-to-work, there is nothing much employees can do. DOL may open an investigation if there are a lot of complaints, but they rarely find fault with an Inc.

CBS On Assignment had an investigative report few weeks backs. Even though that report alleges German Auto manufacturers and Tesla were using Eastern European labor to build their plants, one EEU contractor says he works in the paint shop, suggesting they are using in production as well. If they can get $10/hr, no overtime pay workforce on B1 visas, all bets are off.

https://www.cbsnews.com/news/made-in-am ... -industry/
 
Kiwirob
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Re: Tesla misses Model 3 production goals by large margin

Mon Oct 16, 2017 3:40 pm

It’s usually three warnings then bye bye, Tesla hasn’t done that.
 
WIederling
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Re: Tesla misses Model 3 production goals by large margin

Mon Oct 16, 2017 8:36 pm

Kiwirob wrote:
But this appears to be a mass layoff, employees terminated without any prior warnings, something that’s not allowed in most countries.


You err, Sir.
This is the US. The best of the best of the best places for everything. .... when you are rich, powerful or have big t*ts :-)
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parapente
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Re: Tesla misses Model 3 production goals by large margin

Thu Oct 19, 2017 8:30 am

I think heavy lay offs in Solar City were inevitable.Its not been run well,now taken over by Tesla and the natural first thing would be to evaluate the whole operation and its employees.
It also seems many of the lay offs were in the ModelS area.This (sadly) is to be expected IMHO.Most early buyers (by default weather S owners) have second ICE cars.The electric car is used for commuting.If your supplier offers a 30k car rather than a 60k car which essentially does the same job -which are you going to choose? (No Nswer necessary -just look at the deposits).

They will have to make the S offer more - and soon.My bet is they will put the new (more energy dense) '3' batteries into the S and offer incredible range,thus making it a 'first (or main)' car.Probably 450 mile range,perhaps even the magic 500.
 
Flighty
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Re: Tesla misses Model 3 production goals by large margin

Thu Oct 19, 2017 3:41 pm

Kiwirob wrote:
It’s usually three warnings then bye bye, Tesla hasn’t done that.


Speaking as somebody somewhat experienced with some good options, such action means I would never work for Tesla ever. I WOULD buy a Tesla product, but I would not sell my labor to them. Because I don't need to deal with that kind of hassle. Imagine you have a super expensive mortgage and work 60 hours per week, just to be cut off like an animal? Less than an animal really.
 
jetwet1
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Re: Tesla misses Model 3 production goals by large margin

Thu Oct 19, 2017 10:27 pm

JJJ wrote:
Tesla fires hundreds after company-wide performance reviews
Company says it will replace most workers

http://www.mercurynews.com/2017/10/13/4819750/

Worse than expected?


The layoffs were at the Solarcity part of Tesla, nothing to do with the car part.

parapente wrote:
I think heavy lay offs in Solar City were inevitable.Its not been run well,now taken over by Tesla and the natural first thing would be to evaluate the whole operation and its employees..


The issue is way more complicated than that, Solarcity does not give raises, to make more money you need to get promoted, fine when you are expanding like crazy, not so good when your business is maturing and promotions slow down, so good people left, replaced by their subordinates for the most part. Then you have the installation side, Solarcity had it's own crews, again great when the market is booming, but as it slows down that becomes a drain on profits, they are slowly figuring out that it's cheaper to go with outside contractors, then you have the issue of the panels themselves, or rather manufacturing of them, it was thought that they could produce panels cheaper than buying them, however, that's turned out to be false, that has turned into a major headache on the cost side and the tax breaks that the State of New York gave to have the factory there.

Tesla taking over Solarcity is going to be a whole class in some business schools in a few years.
 
dtw2hyd
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Re: Tesla misses Model 3 production goals by large margin

Fri Oct 20, 2017 1:58 am

jetwet1 wrote:
The issue is way more complicated than that, Solarcity does not give raises, to make more money you need to get promoted, fine when you are expanding like crazy, not so good when your business is maturing and promotions slow down, so good people left, replaced by their subordinates for the most part. Then you have the installation side, Solarcity had it's own crews, again great when the market is booming, but as it slows down that becomes a drain on profits, they are slowly figuring out that it's cheaper to go with outside contractors, then you have the issue of the panels themselves, or rather manufacturing of them, it was thought that they could produce panels cheaper than buying them, however, that's turned out to be false, that has turned into a major headache on the cost side and the tax breaks that the State of New York gave to have the factory there.

Tesla taking over Solarcity is going to be a whole class in some business schools in a few years.


How is this a surprise to Musk? Since 2009, no country in the world can produce solar panels in a cost-effective way. Chinese lowered panel prices by half decimating most producers. Solyndra was the canary. Buying a panel maker and in-house installers in 2016, not a smart move.
 
jetwet1
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Re: Tesla misses Model 3 production goals by large margin

Fri Oct 20, 2017 8:00 am

dtw2hyd wrote:
jetwet1 wrote:
The issue is way more complicated than that, Solarcity does not give raises, to make more money you need to get promoted, fine when you are expanding like crazy, not so good when your business is maturing and promotions slow down, so good people left, replaced by their subordinates for the most part. Then you have the installation side, Solarcity had it's own crews, again great when the market is booming, but as it slows down that becomes a drain on profits, they are slowly figuring out that it's cheaper to go with outside contractors, then you have the issue of the panels themselves, or rather manufacturing of them, it was thought that they could produce panels cheaper than buying them, however, that's turned out to be false, that has turned into a major headache on the cost side and the tax breaks that the State of New York gave to have the factory there.

Tesla taking over Solarcity is going to be a whole class in some business schools in a few years.


How is this a surprise to Musk? Since 2009, no country in the world can produce solar panels in a cost-effective way. Chinese lowered panel prices by half decimating most producers. Solyndra was the canary. Buying a panel maker and in-house installers in 2016, not a smart move.


Lydon and Peter Rive had already made those choices a few years back, Elon had nothing to do with them.

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