Why Production Of The Model 3 Is Risky For Tesla
Tesla, Inc. (former Tesla Motors) has been known as a very unconventional automaker, as evident to a lot of its operations. However, the unconventional procedures with regards to their much-hyped Model 3 actually represent a major risk for the electric car- making the company.
According to Motor Authority, it turns out that Tesla will be skipping the normal production procedure of prototype tools in its path to assembling the Model 3. These prototype tools are said to help automakers see just where potential issues may arise through fit and finish.
Once this procedure has been made with pre-production vehicles, the cheap prototype tools are then discarded in favor of some more permanent tools, which are much pricier as well. For the Model 3, Tesla is going to jump straight to the permanent and expensive tools, posing a huge risk to the company should they make a mistake.
According to BGR, It is indeed a major gamble for the Tesla Model 3 production. But despite that, it also shows Tesla CEO Elon Musk's extreme confidence for the upcoming electric vehicle; skipping the standard process will likely speed its production and allow Tesla to meet its production deadline of July 2017.
However, the problem now is that if the equipment turns out to be flawed, it can definitely cost millions in order to replace or fix defects in the tooling process, not to mention some potential delays in production. Additionally, as a recall, Tesla hasn't had the cleanest record when it comes to quality, and the upcoming Model 3 is estimated to boost production with as high as 500,000 vehicles per year, which is a rate ten times higher than that of the older Model S.
Ultimately, Tesla will be unaware if its gamble would pay off until production and deliveries of the Model 3 will officially begin. There is a lot of pressure riding on the automaker, as multiple investors are continuing to rally around Tesla's promise and vision of the future.
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