Tesla has impressively put the production of the Model 3 at full speed in recent weeks, but the company is still far behind, where many have adopted at that time. Although Tesla initially claimed to reach a production rate of 20,000 units per month before the end of 2017, the company has postponed this period until June 2018.
Without question, Tesla is doing everything to boost production. At the time, Tesla CEO Elon Musk took to Twitter earlier this month and said he had recently slept in the Model 3 factory to help Tesla, which he once categorized as "production hell".
"My job as CEO should focus on what's most critical," Musk said at the time, "which is currently the production of Model 3."
Musk has an email this week sent to staff, in which it is stated that the new target is the production of 6,000 model 3 units per week before July. In the meantime, Musk claims that the production of Model 3 ̵
Interestingly, during a recent interview with CBS, Musk said part of the problem The production of Model 3 can be attributed to his decision to automate much of the production process. In a follow up on Twitter, Musk said, "Yes, exaggerated automation at Tesla was a mistake, to be precise, my mistake, people are underestimated."
First, congratulations are in order! We have now completed our third full week of production of over 2,000 Model 3 vehicles. The first week was 2020, the second was 2070 and we just finished 2250 last week, along with 2000 S / X vehicles.
This is more than twice the production rate of Tesla last year and an amazing feat against many challenges! It is extremely rare for a car company to increase its production rate by more than 100% from year to year. In addition, there has been a significant improvement in quality and construction accuracy, which is reflected in the positive feedback from the owners.
Starting today at Giga and tomorrow at Fremont, we will be holding three to five days to create a comprehensive package upgrades. This should equip us for the model 3 production of 3,000 to 4,000 a week next month.
Another series of upgrades beginning in late May should be sufficient to release the production capacity of 6000 Model 3 vehicles per week by the end of June. Please note that all areas of Tesla and our suppliers must demonstrate a Model 3 capacity of ~ 6000 / week by building 850 sets of car parts within 24 hours by 30 June at the latest.
Any Tesla department or any supplier not able to do so must have a very good explanation why not, along with a plan for resolving the problem and to present it to me directly. If someone needs help to achieve this, please let me know as soon as possible. We will find a way or find a way there.
The reason why the target build rate for the burst build is 6000 and not 5000 per week in June is that we can not have a number that includes thousands of errors from internally and externally produced parts and processes a complex global logistics chain. Actual production will move as fast as the least happy and least well executed part of the entire Tesla production / supply chain system.
Since we have a model 3 subsystem burst build requirement of 6k by the end of June, we will lay the groundwork for achieving a steady 6k / week across the entire Model 3 system a few months later.
As part of efforts towards 6k, Fremont's entire production of Model 3 will be switched to 24/7 operations. This means we will add another layer for general assembly, bodywork and painting. Please refer everyone you know who meets the Tesla Bar for talent, drive and confidence. Between Fremont and Giga, Tesla will add about 400 people a week for several weeks.
Most Model 3 design tolerances are already better than any other car in the world. Soon they will all be better. That is not enough. We'll continue until the accuracy of the Model 3 is ten times better than any other car in the world. I'm not joking.
Our car must be designed and built with such accuracy and accuracy that if an owner measures measurements, slabs and flushness and their dimensions do not meet the specifications of the model 3, it just means that your tape measure is wrong.
Some parts suppliers are unwilling or unable to achieve this accuracy. I understand that this is considered by some to be unreasonable. That's fine, there are many other car companies with much lower standards. You just can not work with Tesla.
A fair external criticism of Tesla is that you are not a real company unless you generate a profit, which means that the sales exceed the costs. There was no point in doing that until economies of scale were achieved, but now we are here.
In the future, we will be much stricter in spending. I have asked the Tesla Finance Team to cut through all spending worldwide, no matter how small, and to cut anything that can not justify a strong value.
Any capital or other expenses over a million dollars or where a lot of the associated costs can add up to one million dollars over the next 12 months should be considered until they are explicitly approved by me. If you are the responsible manager, please make sure that you have a detailed, basic understanding of the supplier's offer, including all promotional materials, before we meet.
I was disappointed to see how many construction companies there are interwoven in Tesla. Often it's like a Russian doll of contractors, subcontractors, subcontractors, etc., before you finally find someone who actually works. This means that many middle managers add costs, but do nothing obviously useful. In addition, many contracts are essentially open times and materials, not fixed price and duration, which creates an incentive to turn molehills into mountains as they never want to end the move.
There is a very wide range of contractor services, from excellent to worse than a drunken sloth. All contractors should consider the coming week a last opportunity to demonstrate excellence. Those who do not meet the Tesla standard have ended their contracts on Monday.
By the way, here are some productivity recommendations:
– Excessive meetings are the stigma of big companies and get worse over time. Please take care of all the big meetings unless you are sure that they will add value to the entire audience, in which case they will stay very short.
– Also remove frequent meetings, unless you are dealing with an extremely urgent matter. When the urgent issue is resolved, the frequency of meetings should drop quickly
– You should step out of a meeting or end a conversation when it becomes apparent that you are not creating value. It is not rude to go, it is rude to bring someone to stay and waste his time.
– Do not use acronyms or nonsense words for objects, software or processes at Tesla. In general, anything that requires explanation prevents communication. We do not want people to remember a glossary just to work with Tesla.
– Communication should be done by the shortest route necessary to get the job done, not through the chain of command. Any manager who tries to enforce the chain of command communication will soon be working elsewhere.
– A major cause of problems is poor communication between departments. The way to solve this is the free flow of information between all levels. If, to do something between the Depts, a single employee has to talk to his manager, who talks to a director who talks to a VP who talks to another VP who talks to a director who talks to a manager who Talking to somebody who does the real work, then super dumb things will happen. It must be okay for people to speak directly and just let the right thing happen.
– In general, always choose common sense as your guide. If following a "company rule" is obviously ridiculous in a given situation, so that it would create a big Dilbert cartoon, then the rule should change.
If there is something you should do to make Tesla better or to look forward to the work (the same in the long run), please send a message to email@example.com
Thank you You are such a kick-ass team and have done wonders every day. It is important. We burn the midnight oil to burn the midnight oil.