One current Tesla engineer estimated that 40 percent of the parts made or received at Tesla's factory are flawed, making it hard to hit production targets. While the CEO warned employees at Tesla's assembly plant in Fremont, California, in July that they were going to be stepping into "production hell", he still proceeded to forecast that the company would be able to make 1,500 of the cars by the end of September. Is it just Musk, or can you hear "tic-tac" as well? In an attempt to deal with the high number of flawed parts and vehicles, Tesla has brought teams of technicians and engineers from its service centers and remanufacturing lines to work in their Fremont factory.
After Tesla announced that former CFO Jason Wheeler would leave in April of a year ago, Bloomberg News reported on a list of more than two dozen executives who had parted ways with the company during the previous 12 months.
Senior executives who've left the company in the past year include former CFO Jason Wheeler; Lyndon and Peter Rive, Musk's cousins who had joined him in co-founding SolarCity Corp.; Chris Lattner, an Apple Inc. hire who left after leading Tesla's Autopilot engineering team for less than six months; Kurt Kelty, a longtime battery executive; and Diarmuid O'Connell, vice president of business development. That is why we review every vehicle for even the smallest refinement and conduct extensive end of line quality checks before a customer takes delivery of their auto. We care about even the smallest imperfection like a slight paint gloss texture or a wheel alignment check.
As an example, every Model S or Model X on the assembly line must pass through hundreds of inspection and test points.
Thus the usual production schedule has been disturbed in a very shocking manner which is costing the company valuable incoming revenue. We then feed these improvements back to production in a pursuit of perfection. "These periods are used to improve automation and systematically address bottlenecks in order to increase production rates", said Tesla in a statement.
To phrase that a different way, the number of labor hours needed to produce a single Tesla Model S or Tesla Model X has been decreased to a large degree in recent history, according to the electric vehicle (+ energy storage + solar PV panel + solar roof tile) manufacturer. Whereas before, it took three shifts with considerable overtime to produce 100,000 Model S and X vehicles, now it can be done with only two shifts and minimal overtime.
Tesla shares dropped as much as 3.1 per cent and traded down 2.3 per cent to US$333.86 as of 12:23 p.m.