Print 16 comment(s) - last by Reclaimer77.. on Aug 19 at 9:21 AM

It will also ramp up Model S production

Tesla Motors is temporarily pausing production at its Fremont, California plant in order to ramp up Model S units and prepare for the upcoming Model X. According to a new report from Bloomberg, Tesla is halting production for about two weeks so it can bring in 25 robots and upgrade the factory’s body and general assembly lines. 

This reconfiguration is expected to cost about $100 million USD, and increase production by 25 percent. 

“This represents the single biggest investment in the plant since we really started operations and enables us for higher volumes,” said Simon Sproule, a spokesman for Tesla. 
“It gets us ready to build X and to do it on the same line as the S.”

Before the pause in production -- which began yesterday -- Tesla was making nearly 800 Model S' per week. The goal is to up this number to 1,000 units weekly. 

There's good reason to ramp up Model S production. The EV has had a good year so far with 6,457 Model S sedans sold in Q1 2014 alone. For all of 2014, Tesla is expecting global delivery of 35,000 vehicles.

The forecast for Q2 2014 calls for production of 8,500 to 9,000 Model S', with deliveries at about 7,500. 

To top it off, the Model S is getting a lot of attention globally. Customers start getting their Model S' in Hong Kong next week, and the UK government is eyeing the Model S as a potentional purchase for UK ministers conducting official business across London (more specifically, the Model S will address current issues like crowded streets and fees for gasoline vehicles in London). 

Beyond increased Model S production, the retooling will also prepare and modify the Fremont plant for the Model X later this year. 

Elon Musk and the Model X [SOURCE: Best Car Blog]

The Model X -- which was introduced in February 2012 -- is Tesla's upcoming all-electric, sport-utility vehicle. The new EV will be heavier than the Model S with 10 percent higher energy consumption.
Some other Model X features we've heard about are "Falcon Doors" for rear seat occupants, all-wheel-drive as a standard (with a separate electric motor driving the front wheels), three battery capacities to choose from (40, 60, and 85 kWh), the ability to sprint from 0 to 60 mph in around 4.4 seconds and a maximum driving range between 214 to 267 miles. 

The Model X was originally slated to release in 2013 for $49,900 USD, but it was delayed to 2014. Then in February of this year, it was announced that the Model X would be delayed until 2015 because Tesla CEO Elon Musk wasn't 100 percent happy with the design quite yet. 

"It's damn hard to make an SUV in particular that is beautiful and yet incredibly functional at the same time," said Musk. "It's a harder design problem than the Model S." 

The Fremont plant will also make battery packs for homes and businesses to store power from solar panels while Tesla moves forward with its planned Gigafactory, which aims to make batteries at lower costs. Tesla is currently looking at California, Nevada, New Mexico, Texas and Arizona for locations. 

Tesla said the giant factory would create 6,500 jobs, and the company will invest around $2 billion in the plant through 2020 while investors will pay another $2-3 billion for a total $4-5 billion investment. 

While the Fremont plant is going through its retooling, workers have the choice of taking vacation or sticking around for maintenance or training shifts. Tesla has over 6,000 employees total. 

Tesla is expected to release Q2 2014 financial results on July 31, which will include revenue from initial sales in China and the UK. 

Source: Bloomberg

Comments     Threshold

This article is over a month old, voting and posting comments is disabled

This or X-Wing
By Runamok81 on 7/22/2014 2:07:45 PM , Rating: 5
Can't decide whether to purchase this new Tesla X or the X-Wing from yesterday.

RE: This or X-Wing
By Belegost on 7/22/2014 2:46:12 PM , Rating: 5
Well, you have to consider the priorities in your life.

The Tesla X will get Timmy to and from soccer practice with low range anxiety and a network of superchargers for long trips.

The X Wing will give you a superior weapons platform for dogfighting with imperial TIE fighters, while being flexible enough to carry precision torpedoes for times when you absolutely need to hit the thermal exhaust vent of the deathstar in order to save a planet.

Both of these are vital functions in day to day life, and you just need to weigh the tradeoffs between them.

RE: This or X-Wing
By SublimeSimplicity on 7/22/2014 3:11:05 PM , Rating: 2
I think it ultimately comes down to which one has better lease rates.

RE: This or X-Wing
By spamreader1 on 7/22/2014 3:17:30 PM , Rating: 2
How many MPG's do they both get?
How many cup holders do each have?

RE: This or X-Wing
By amanojaku on 7/22/2014 3:18:33 PM , Rating: 3
You can't put an R2 unit in a Tesla. That's a deal breaker.

RE: This or X-Wing
By mm2587 on 7/22/2014 3:24:15 PM , Rating: 2
but how does an R2 stack up against Tesla's on board infotainment system? Any sights with reviews comparing the two?

RE: This or X-Wing
By ltfields on 7/22/2014 3:32:18 PM , Rating: 2
And they both have a better turning radius than my Y-wing. I swear that hunk of junk was built by GM...

RE: This or X-Wing
By Belegost on 7/22/2014 5:48:35 PM , Rating: 2
You needed to get the Asteroid Belt Sport Package. It not only boosted front deflectors by 3% but doubled the size of the main maneuvering thrusters. Not to mention the upgrade to walnut trim in the cockpit.

RE: This or X-Wing
By althaz on 7/22/2014 11:39:29 PM , Rating: 2
IMO not worth it. The key part of that package is clearly the walnut trim - which can be purchased separately for less than half the price.

Also, the ABS package reduces fuel-efficiency - we're not all trying to make the Kessel run in less than 12 parsecs.

RE: This or X-Wing
By FITCamaro on 7/23/2014 7:54:03 AM , Rating: 3
Should be a simple decision.

Taxpayers help you buy the Tesla.

RE: This or X-Wing
By Argon18 on 8/18/2014 11:25:33 AM , Rating: 2
That logic extends to so many things in life. Even plain old gasoline engine cars. Big Corn is powerful and has a lot of influence in Congress, hence the mandatory 10% Ethanol in gasoline today. Yet Big Corn is heavily government subsidized. The tax dollars going into Big Corn pockets make Tesla look like chump change.

I'm a Tesla fan, but...
By SublimeSimplicity on 7/22/2014 3:35:41 PM , Rating: 1
Something smells fishy. Based on their order delivery estimation, they have plenty of demand for the Model S and reported pre-orders for the Model X in the 10s of thousands. They also have tons of unused factory space. Why not add a new line for the Model X? Or is this a clever scheme to mask dropping US demand?

The only way I come up with that doesn't point to dropping US demand, is a battery supply issue. However, unless Panasonic has silenced them about supply issues as part of the Gigafactory agreement, why not just say that?

RE: I'm a Tesla fan, but...
By Wonga on 7/22/2014 4:50:59 PM , Rating: 4
Why would they invest in a whole new production line if the existing line can be modified to allow for two models to be built according to demand? It's lean manufacturing. It could also be that some existing stages are a bottleneck, so why create a whole new line when you can just remove the bottlenecks? There is no point installing brand new equipment in location y if location x (the original location) is the optimal point for an efficient production line. Moving from x to y adds hundreds of thousands of pounds / dollars over a period of time.

RE: I'm a Tesla fan, but...
By VoodooChicken on 7/22/2014 5:06:10 PM , Rating: 2
Musk still wasn't happy with the design (98% isn't 100%). And basically they don't have all the ducks in a row to be as efficient and profitable as they'd like. They have new robots, but will need more, and some factory space is reserved for the S III or even future models.

RE: I'm a Tesla fan, but...
By Mint on 7/22/2014 5:25:06 PM , Rating: 2
They ARE adding Model X manufacturing capability. Did you not read the article?

The new production line (and some of the old ones after retooling) will be able to produce both the S and X, allowing Tesla to change the product output balance as per customer demand.

There's no doubt that the X will cannibalize some S sales. People previously set on getting a Model S will now be able to consider the X as an alternative.

Those Doors
By Reclaimer77 on 8/19/2014 9:21:01 AM , Rating: 2
I know I'm gonna get crap for this, but hear me out. This isn't some Tesla-bash like usual.

I see a lot of SUV and Crossover users utilizing their roofs for extra cargo space. Like those aerodynamic containers, or bicycles and kayaks, camping equipment etc etc. Not ALL, not even most, but I see it often.

These doors on the Model X looks cool, I'll give them that. But they complete eliminate the option of putting racks on the roof for utility purposes.

Since I am not a SUV/Crossover shopper and never will be, how big of a deal is that to someone who's in that market? Are the doors worth that tradeoff?

“Then they pop up and say ‘Hello, surprise! Give us your money or we will shut you down!' Screw them. Seriously, screw them. You can quote me on that.” -- Newegg Chief Legal Officer Lee Cheng referencing patent trolls

Copyright 2016 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki