- Tesla is working through production bottlenecks for its Model 3.
- The problems are concentrated at its Nevada battery factory.
- The company’s goal is to automated assembly of this expensive component, to speed up production and reduce cost.
When it comes to cars, most people don’t think about how much the individual parts add up to an overall price tag.
That is, until something goes wrong.
Tesla has been dealing with what it calls production bottlenecks at its massive battery factory, called the Gigafactory, in Nevada. The company went into some detail on the issues during its third-quarter earnings conference call with analysts, when CEO Elon Musk was actually at the Gigafactory near Reno trying to sort out the slowdown.
Battery production for the mass-market Model 3 will be far more automated than it has been for Tesla’s previous vehicles, the Model S and Model X. Production, in general, will be more automated and that’s created a learning curve that hasn’t been smooth for Tesla because it’s harder to fall back on hand-assembly of components.
“It is harder to supplement with manual than S or X because the system is designed as a very tightly integrated automated system,” he said.
“So it’s very unwieldy to try to supplement or make up for a machine not working with manual activity. So, we think like … if you had a spreadsheet and a couple of cells in the spreadsheet were manually calculated, well, yeah, you could still do your spreadsheet stuff, but it’s going to be a lot slower, until the last cell is automated and then it’s going to be super fast.”
Batteries are expensive
The battery in a Tesla is a very costly component and complicated Read More Here