crushing production line of a tesla

tesla explains oversight on model 3 production line automation

tesla explains oversight on model 3 production line automation

Following consistent delays in Model 3 production, Tesla is attempting to fine-tune their automation strategy to solve production bottlenecks. As noted in Teslas Q1 Earnings Report,the company is currently producing 2,270 Model 3s per week, less than half of the 5,000/week goal they set for the end of June.

Even after Tesla CEO Elon Musk stated that humans were underrated and that excessive automation at Tesla was a mistake, Tesla is largely crediting quality improvements to their highly-automated production.

We are already seeing many benefits from heavily increasing automation as part of the Model 3 production process. Through the vast majority of Model 3 production, including in body welding, general assembly, inverter and drive unit production, our automation effort has been very successful. Based on every measurable metric, Model 3 is already the highest quality vehicle we have ever produced, and this is unquestionably due in large part to automation, Tesla stated in their Q1 Update Letter.

Despite early success with a large amount of the Model 3s automated production line, Tesla is dialing back some of the processes. The company stated, In those select areas where we have had challenges ramping fully automated processes, such as portions of the battery module line, part of the material flow system, and two steps of general assembly, we have temporarily dialed back automation and introduced certain semi-automated or manual processes while we work to eventually have full automation take back over.

"Vast majority of production system is automated but we went too far and automated some pretty silly things" Silliest item? "Basically placement 'fluff' on the top of the battery pack was automated with a 'fluff machine'" Super complex, used a vision system $TSLA @Teslarati

7 Hours to make a pack 3 weeks ago, now is 17 minutes @elonmusk We are slightly ahead in battery cell and module production, general assembly area is the source of some production delays. $TSLA @Teslarati

Tesla isnt only banking on automated processes to ramp up production of the Model 3. The company also highlighted that the vehicle was designed to be easily mass-produced. Tesla stated that the vehicles assembly line consists of 70% less steps compared to traditional assembly lines.

The Model 3s assembly line has 50 different steps and the vehicle is built on a singular body frame. By comparison, the Model S has over 80 different body frames. Tesla also cited that the vehicle has lighter wiring and fewer controllers, connectors, and CPUs compared to average vehicles.

All these elements are rooted in design and critical not only to our ability to reach higher levels of output in a smaller amount of factory space but also to achieve lower levels of cost, Tesla stated.

Its expected that Tesla will optimize the level of automation on the Model 3 line following a planned 10-day shutdown in production in the second quarter. With more people involved invehicle production, Tesla can dynamically adjust overtime hours and staffing levels to meet line goals.

tsla stock: why tesla is a screaming buy ahead of its q2 report | investorplace

tsla stock: why tesla is a screaming buy ahead of its q2 report | investorplace

With two weeks remaining in Q2, all eyes are on Tesla (NASDAQ:TSLA) and the companys electric vehicle (EV) production and delivery numbers this quarter. Channel checks point to strong demand, with Tesla having already sold out production capacity. Still, tensions run high. TSLA stock has pulled back 13% year-to-date on production concerns, industry-wide supply constraints and increasing headline risk from competitors.

Can Tesla beat its own personal best and produce over 185,000 EVs this quarter? The company is going full throttle, so to speak. Recent reports confirm that CEO Elon Musk asked Tesla employees to go all out for the companys end-of-quarter delivery and production push.

If the last few weeks have taught us anything, its that EV stocks are binary: theres a clear line thats drawn between winners and losers. On one side of the equation are EV companies whose credibility and overall viability are clearly in question, as evidenced by management departures and recent SEC investigations. Other EV stocks (Tesla included) are commanding red-hot valuations.

Last week alone, two pre-revenue and pre-production EV companies experienced very different outcomes. For Lordstown Motors (NASDAQ:RIDE), the story may be over. The company missed its targets on costs and production, admitted it overstated pre-orders, told investors it didnt have enough money to start full production and parted with its CEO and CFO.

But for other EV startups, such as Lucid Motors, things could just be getting started. Last week, an S-4 from Churchill Capital V (NYSE:CCIV) valued Lucid Motors at $38 billion. While the musings around the next Tesla killer have certainly grabbed headlines and investor imaginations lately, anyone actually doing the math can see its a pretty rich valuation for a company with no revenue or volume commercial production.

When it comes to EV sector valuations, this disconnect between fantasy and reality has some investors wondering if a broader correction is imminent. For now, the market seems more focused on a future growth narrative than present fundamentals. As a result, EV valuations have held fairly steady. Lordstown, semi-truck maker Nikola(NASDAQ:NKLA) and electric-car maker Canoo (NASDAQ:GOEV) are all trading in line with, or above, their SPAC (special-purpose acquisition company) IPO prices. Thats despite several red-flags, including questionable viability, SEC investigations and management housecleaning. The Global X Autonomous & Electric Vehicles ETF (NASDAQ:DRIV) is up 13% over the same period, mostly due to renewed strength among component suppliers.

While TSLA stock has rebounded from recent lows of $550, the stock is still down from January highs of over $880. If delivery numbers outperform this quarter, the stock could see a return to these levels very easily.

Using history as a guide, its clear to see that Tesla has established a recent pattern of outperformance. Despite a production pause during the pandemic, Tesla almost delivered 500,000 vehicles in 2020. That represents 36% year-over-year growth. For 2021, the EV maker expects deliveries to grow even faster than they did in both 2020 and 2019. For the full year, Tesla is expected to exceed 800,000 EVs an over 50% increase from 2020 levels.

Last quarter, analysts didnt expect Tesla to beat numbers, especially in a seasonally soft quarter. But the company did, anyway, posting a 109% year-over-year increase in vehicle deliveries. After crushing Q1 estimates, managements 2021 outlook is starting to look very achievable. That said, it may take another quarter to convince investors that Teslas growth rate will accelerate this year.

This quarter, for Tesla to remain on track to deliver on its guidance, the company will have to more than double its second quarter deliveries on a year-over-year basis. This shouldnt be too difficult. If Tesla simply maintains its Q1 vehicle deliveries (185,000), this would equate to a year-over-year growth rate of 104%. Notably, Tesla paused production of the Model S and X last quarter as the company refreshed these models. With both vehicles having resumed production in Q2, Teslas ability to hit this number looks very achievable.

With Musk having called for Tesla employees to go all out for the companys end-of-quarter delivery and production push, the bigger question is whether Tesla can beat its own record. No doubt, the company faces some real fundamental headwinds, ranging from supply chain constraints (mostly around semiconductors), production delays and even safety issues. Notably, May deliveries at Li Auto (NYSE:LI) and Nio fell amid the global chip shortage.

This year, Teslas vehicle growth is also partially dependent on continued manufacturing expansion at its factories, particularly at the new plant in Texas and also Germany, which has been more challenging to launch. Its certainly possible that the company could face some unforeseen hiccups here.

For the most part, the recent weakness in Tesla stock is the result of headline risk relating to increasing competition from mainstream automakers, who are also getting much more serious about their EV roadmaps. For instance, Ford (NYSE:F) recently unveiled its electric F-150 Lightning, as it looks to transition its cash cow, the F-Series pick-up, into the EV space. General Motors (NYSE:GM) is also investing aggressively in EVs, with plans to launch 30 new models globally by 2025. Then there are the newcomers, including Rivian Automotive, whose initial public offering (IPO) is expected later this year, and Lucid Motors, which should complete its SPAC IPO in July.

Teslas recent commentary suggests that management is very confident it can achieve its 2021 forecast. Depending on how well Tesla does this quarter, theres a good chance TSLA stock will re-set much higher.

My take: with competitive threats largely overblown, and the company well-positioned to capture a massive $5 trillion global automotive market, I remain a buyer of Tesla stock ahead of Q2 earnings. The recent pullback in the shares is an attractive entry point.

On the date of publication, Joanna Makris did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Joanna Makris is a Market Analyst atInvestorPlace.com. A strategic thinker and fundamental public equity investor, Joanna leverages over 20 years of experience on Wall Street covering various segments of the Technology, Media, and Telecom sectors at several global investment banks, including Mizuho Securities and Canaccord Genuity.

Financial Market Data powered by FinancialContent Services, Inc. All rights reserved. Nasdaq quotes delayed at least 15 minutes, all others at least 20 minutes. Copyright 2021 InvestorPlace Media, LLC. All rights reserved. 1125 N. Charles St, Baltimore, MD 21201.

rare photo of a tesla model 3 on the factory production line surfaces

rare photo of a tesla model 3 on the factory production line surfaces

Teslarati has obtained a rare photo shot in black and white of a Tesla Model 3on the Fremont factory production line. The Model 3 is seen with a handwritten timestampof 9-26 on a portion of thebumper below thefront trunk, which suggests that the vehicle was produced just days ago.

The Model 3 appears to be in its final stages of production inside of what CEO Elon Musk calls Teslas alien dreadnaughtfactory. The first sighting of Teslas robot army to be used on the Model 3 production line took place in April of this year after a Field Service Engineer for Kuka Robotics maker ofTeslasX-Men superhero robots revealed an army of 467 new robots thatwas reportedly to be used for Model 3 production.More photos followed suit when an attendee ofTeslasVIP Factory Toursnapped a quickphoto of the Model 3 production line under construction, at a time when the companywas pushingto build its first production SN1 Model 3.

Also seen in the newest set of photos from insidethe Tesla factory is a Model 3 door taken from a vehicle that was used for crash test purposes. A gutted red Model 3 door is reportedly inside a learning centerat the Fremont factory. A Kuka robot is seen grasping presumably anotherModel 3 door and being trained.

As Tesla readies to deliver its Q3 2017 Production and Deliveries report to investors, the Silicon Valley-based electric carmaker has remained relatively silent on all topics related to Model 3. As of now, we know that Tesla aims to produce1,500 Model 3 units inSeptember, before ramping up to 20,000units inDecember.

Its not clear if Tesla is on track to meet these numbers, but an inside source tells Teslarati that Model 3 production is ahead of forecasts and early reservation holders will soonreceive an email invitationto configure their Model 3.

tesla: vehicle production by quarter ytd 2021 | statista

tesla: vehicle production by quarter ytd 2021 | statista

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obvious reasons why a tesla-crushing apple car won't exist

obvious reasons why a tesla-crushing apple car won't exist

Apple (AAPL) could start production on its own electric vehicle as early as 2024, according to a report out of Reuters this week. The car will be powered by a breakthrough monocell battery design that offers up greater range than traditional electric vehicle batteries. Apple, which did not respond to Yahoo Finances request for comment, is also reportedly exploring the use of a lithium iron phosphate battery, which would not include hard to mine metal cobalt.

There are the Herculean-like auto production capabilities, battery technology ramp, financial model implications, and regulatory hurdles involved in such a game changing initiative, Ives explains. In addition, on the autonomous front and given safety/regulatory issues we would see a longer timeframe if Apple ultimately heads down this path especially given the cautious DNA of Cook & Co. in launching new products.

Instead, Ives believes Apple will go the partnership route to enter the surging electric vehicle space. It would likely lead with the Lidar (Light Detection and Ranging) technology it has reportedly been developing since 2014. Doing so would reduce capital outlays and regulatory hurdles, among other elements to the complicated story that is making a car in the modern day.

We believe based on our investor conversations over the last few days that many on the Street would rather see Apple partner on the EV path, than start building its own vehicles/factories given the margin and financial model implications down the road, coupled with the strategic product risk around such a gargantuan endeavor. This speaks to our view that the chances of a strategic partnerships with the likes of a Tesla, VW, or other auto manufacturers in China (e.g., Nio, Xpeng) are in the 70%+ range over the next few years and could lay the groundwork for a dual path (start building its own line of EV autos post 2025) over the next decade if this EV/autonomous venture is successful with consumers, adds Ives

Speculation on Apples potential EV entry has put a spotlight on shares of many suppliers in the space. Battery startup shares of QuantumScape (QS) spiked 29% on Monday and rose nearly 40% on Tuesday. A source tells Yahoo Finance QuantumScape is currently not in talks with Apple.

Watch Yahoo Finances live programming on Verizon FIOS channel 604, Apple TV, Amazon Fire TV, Roku, Samsung TV, Pluto TV, and YouTube. Online catch Yahoo Finance on Twitter, Facebook, Instagram, Flipboard, SmartNews, LinkedIn, and reddit.

The U.S.-listed shares of several Chinese electric-vehicle makers were trading down on Wednesday after the Chinese government imposed restrictions on ride-hailing giant DiDi Global (NYSE: DIDI) following its initial public offering in New York. Li Auto (NASDAQ: LI) was down about 4.6%. NIO (NYSE: NIO) was down about 6.9%.

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Shares ofApple (NASDAQ: AAPL) rose 1.8% to a record closing high of $144.57 on Wednesday after a respected Wall Street investment bank issued bullish commentary on the popular tech stock. JPMorgan analyst Samik Chatterjee reiterated his overweight rating on Apple's stock yesterday and boosted his share price forecast from $165 to $170. JPMorgan's analysts are bullish on Apple.

Workhorse Group (NASDAQ: WKHS) stock opened at $13.85, dropped to a low of $12.43 during the day and closed at $12.51, a one-day tumble of 9.61% on Wednesday. Shares in Workhorse, a maker of electric trucks, have been a favorite among retail investors and were as high as $17 last week. Workhorse, which lost out to Oshkosh Defense, a division of Oshkosh, on the contract to make the next-generation vehicles for the U.S. Postal Service, has lodged a formal complaint with the Federal Claims Court regarding the bid process.

What happened Shares of Moderna (NASDAQ: MRNA) were falling 4.7% lower as of 11:55 a.m. EDT on Wednesday. The decline came after the company reported that the first participant has been dosed in a phase 1/2 study evaluating its quadrivalent flu vaccine.

(Bloomberg) -- Jeff Bezos is leaving the rest of the world behind when it comes to wealth accumulation.The worlds richest man reached a record $211 billion net worth Tuesday after Amazon.com Inc. shares rose 4.7% after the Pentagon announced it was canceling a cloud-computing contract with rival Microsoft Corp. The rally raised Bezoss fortune by $8.4 billion, according to the Bloomberg Billionaires Index.The last time anyone in the Bloomberg ranking neared this amount was in January, when Tesl

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