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Tesla has always had trouble building cars. Now this critical foundation really harms his business



  • Tesla has always strived to meet the standards of the automotive industry for its manufacturing processes. CEO Elon Musk has called this "production hell".
  • With so much time spent on something that has nearly perfected the rest of the auto industry, the company has less time to deal with the more complicated aspects of its business. [19659002] As Tesla grew, this failure has become a bigger burden on their business.
  • For more information, visit the Business Insider homepage.

It has been the biggest mystery of the auto industry for years. Tesla's share price, consumer awareness and media profile grew along with vehicle sales ̵

1; and although the company sold a few thousand cars in 2018 to nearly 250,000, the foundations of manufacturing continue to be botched. They had a term for it: "production hell".

For industry veterans, this was confusing. The automakers had spent decades perfecting a "lean" manufacturing model, and as Tesla started to ramp up production seriously, the electric car maker should be ideally positioned to implement this system with minimal learning.

opposite happened. Last year, Tesla's actual California plant failed so well during assembly of the Model 3 sedan that the company set up an additional row in its parking lot. It was under a huge tent and looked like something from the early days of car manufacturing.

I thought it would be an innovative solution to an annoying problem, a nimble, "good enough" patch, and it enabled Tesla to maintain the Model 3 on course. But that did not make it less confusing.


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