Tesla Stops Critical Brake and Roll Test to Meet Production Goals
There are several Tesla stories today, none of them any good.
Brake and Roll
Elon Musk ordered Tesla engineers to stop doing a critical brake and roll test on Model 3s cars.
Tesla CEO Elon Musk ordered his employees to stop putting nearly finished Model 3s through a critical test before leaving the company's factory in Fremont, California, according to an internal document viewed by Business Insider.
Ron Harbour, a consultant at Oliver Wyman who founded and writes "The Harbour Report," a worldwide guide to manufacturing, told Business Insider that after everything is installed in a car during the manufacturing process, a manufacturer would have to be very lucky for everything on a car to be in alignment.
"If you just abandon [the test], you could potentially have a lot of quality issues with your customers," he said. "Every plant does that ... It's part of finishing the build of the car."
Harbour told Business Insider he was unaware of any test that could adequately replace the brake-and-roll test on a manufacturing line.
Reservations and Deliveries Decline
Goldman Sachs is unimpressed by Tesla meeting its Model 3 goal.
- Goldman Sachs is not impressed with Tesla's production announcement and reiterates its sell rating for the company's shares, noting net Model 3 reservations declined to 420,000 from 455,000 last year.
- Tesla said Monday it reached its one-week production goal of 5,000 Model 3 cars for the last week of the June quarter. But the company fell short on its second-quarter deliveries by posting 40,740 vehicles delivered versus the Wall Street consensus expectation of approximately 51,000.
Shouting Elon Musk Changes Rules on the Fly
CNBC comments on a shouting Elon Musk and changing rules.
A tense and short-tempered Chief Executive Elon Musk barked at engineers on the Fremont, California assembly line. Tesla pulled workers from other departments to keep pumping out the Model 3 electric sedans, disrupting production of the Model S and X lines. And weekend shifts were mandatory.
Leading up to Sunday morning's production milestone, Musk paced the Model 3 line, snapping at his engineers when the around-the-clock production slowed or stopped due to problems with robots, one worker said. Tesla built a new line in just two weeks in a huge tent outside the main factory, an unprecedented move in an industry that takes years to plan out its assembly lines, and said the tented production area accounted for 20 percent of the Model 3s produced last week.
"They were borrowing people from our line all day to cover their (Model 3) breaks so the line would continue to move," said a Model S worker on Sunday.
Because of the focus on the Model 3, the S line is about 800 cars behind, the worker said.
"They've been throwing Model 3s ahead of the S to get painted to try to assure that they make their goal of 5,000," the worker said. "The paint department can't handle the volume."
"He (Musk) is gonna go through an awful lot of people because people are gonna start getting hurt left and right," by the fast-moving assembly line, a worker said.
For discussion of the 300 dropped welds, please see Model 3 Assembly Line: Detailed Images of Tesla's "On the Fly" Manufacturing.
The quality of these rushed vehicles is guaranteed to be crap, just to make a self-imposed production number.
Mike "Mish" Shedlock