Daily Management Review

Tesla Attains Production Target Of 1000 Model 3 Cars A Day


11/30/2018




Tesla has managed to increase its production of Model 3 electric cars to a thousand a day – resulting in about 7000 units a week. however the US electric car maker is now focusing on maintaining that production rate and bringing down production costs according to reports.
 
According to an earlier report published the ‘Electrek’ based on an email sent to Tesla employees, company CEO Elon Musk had announced that he would himself walk the entire assembly line for the Model 3 – starting with battery production to the final assembly at the end of the current month to view progress.
 
He had mentioned in the email that it was crucial that all of the production subsystems were able to churn out 50 units per hour because he believes that would be necessary to achieve the target of a 1000 cars a day.
 
In a new email as reported by Electrek, Musk has announced the company achieving the target of manufacturing of 1000 Model 3 cars a day. Following this, it would be crucial for Tesla to keep up the pace of production because that has been one of the major issues that has been plaguing the company on the production side for a long time.
 
Musk told employees on Thursday: “If you are able to help in any way with getting Model 3 production to a steady 1000 per day at excellent quality, everyone at the company should please consider this their top priority. Body production currently appears to be our limiting factor, so it needs the most support right now. Please focus on simplification and reducing cycle time first and then uptime.”
 
There has been no comment from Tesla about the latest e-mail sent by Musk to employees.
 
The billionaire owner of Tesla wants the company to first maintain the newly attained production rate over a period time and then start devising ways to reduce the production cost and thereby the ultimate offer cost of the Model 3 to customers. the company wants the production to be designed so that the company can make profits by selling a standard Model 3 for $35,000.
 
“It’s important to bear in mind that the cost of the car is made up of about 10,000 unique parts and processes. depending on how you count it, the current cost of a standard range Model 3 would be around $38,000, so each part or process step only costs around $3.80. That means finding cost efficiencies is a game of pennies, even though it might not seem so,” Musk reportedly said in the email.
 
If everyone on the production line is able to coordinate their efficiencies and talent, a very small efficiency improvements, like “better packing density or rearranging process flow to a fewer forklift moves”, Musk said.
 
Mush had said last month that the base Model 3 would probably be available to customers in about six months time.
 
 (Source:www.electrek.co)






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