Home / World / More factory problems as Elon Musk's Tesla starts producing the Model 3 – Los Angeles Times

More factory problems as Elon Musk's Tesla starts producing the Model 3 – Los Angeles Times

Will Tesla’s Elon Musk revolutionize the auto industry and become the Henry Ford of the 21st century? Or are his bold visions too untethered from the complicated realities of mass-market motor vehicle production, sales, distribution and repair?

The answer will be clarified six months from now, when we’ll know whether Tesla is capable of high-volume production of its new mid-market Model 3 — and whether customers are happy with what’s coming off the assembly line.

The six-month clock started running late Sunday night with a tweet from Musk. He said Tesla will deliver 30 Model 3s by the end of July, and ramp up production to 20,000 Model 3s a month by December — a rate of 240,000 a year.

If all goes well for Tesla, it will beat them to the market. If Tesla can get production up to 200,000 to 300,000 cars a year at high quality, with costs under control, it could remain well ahead of the pack, consultant Marian said.

The global electric car market is bound for strong growth, he believes, and “Tesla is fully vested in electric vehicles. This helps them a lot.”

Tesla is also far ahead of competitors in over-the-air software, which can regularly and automatically upgrade electronic systems with no trip to the dealer. “That’s a huge competitive advantage,” Marian said. Other automakers “are trying to catch up, but they’re many years late.”

Still, if Tesla can’t produce the Model 3 at high volume with high quality, that won’t matter, especially if buyers have other luxury electric cars to pick from.

Acknowledging the risk, Musk tweeted again Monday afternoon, thanking those who own or have ordered a Tesla. “It matters to us that you took a risk on a new car company,” he said. “We won’t forget.”

Source: world

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