Tesla Has Amazing Production Volume

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Tesla Has Amazing Production Volume
Posted On: February 22, 2022

Tesla achieved volume production with the Model 3 in 2018. No other EVmanufacturer has reached the volume that Tesla has. BYDis probably the second closest company, in China.


Elon states the importance of manufacturing and reaching volume production. Tesla Giga Shanghai as been the quickest ramp of volume production for Tesla, after Tesla Fremont. Even with the over 1 million vehicles a year run rate that Tesla has, there is much more that Tesla needs to do to get to 20 million vehicles per year.


There must be innovation in manufacturing, that is the #1 most important thing for Tesla to achieve, even more important than any design. Elon Musk says, "Prototypes are easy, volume production is hard." You rarely hear Elon Musk say anything besides volume production is hard, and not just hard, but excruciatingly hard.


When you see that something is hard for Elon Musk and Tesla, you have to imagine that it is almost impossible for any other company to do. Why doesn't Elon Musk help other companies reach volume production to transition the world to sustainable energy faster? The world is mostly battery constrained for E.V.s and all companies would compete for scarce resources. Tesla makes the best EVs and they deserve the batteries right now.


China companies seem to be at about 10,000 units produced a month with the BYDDolphin just reaching that recently. It will be interesting to see if those companies can reach volume production, which would be 100,000 or more a month.


It gets harder after 10,000 a month. Tesla saves costs by removing radars and lumbar support, or gear levers. But the capital equipment is also a cost. A factory that produces 4 times as many units can generate much lower operating costs and deliver much more savings. Tesla has already hit 80,000 vehicles a month even without new manufacturing processes.


I think the 500,000 a year run rate for Giga Berlin is a big sandbag for Tesla. That means I think Giga Berlin will do way more than 500,000 a year in volume production. Tesla continues to innovate manufacturing and I think Giga Berlin will get closer to 2 million units per year.


Chinese EVmanufacturers need to cut costs in order to compete, however, they don't have the manufacturing volume and prowess that Tesla has. Legacy auto will have an even more difficult time as they transition away from their ICE vehicles.


VW has a plant in Wolsburg, Germany, which manufactures around 1 million units per year. This is 70 million square feet. The footprint of Giga Texas is 1/5 the floor space. Giga Texas will likely hit 2 million vehicles per year, which will make it 10 times as efficient as VW.'s plant, and this is just a rough estimate.


If other EVcompanies are going to build a significant number of EVsthey are going to have to build very large factories. Tesla has already done this with Giga Berlin, Giga Shanghai, and Giga Texas. They have these factories built and have a huge head start and already have a huge manufacturing and technology lead.


Source: Re-posted and Summarized from Jeremy Johnson at torquenews.


My Take: Tesla's ratio of cars produced per factory square foot is truly awesome.


Re Posted From: Tesla Has Amazing Production Volume

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[BACK]
Tesla Has Amazing Production Volume
Posted On: February 22, 2022

Tesla achieved volume production with the Model 3 in 2018. No other EVmanufacturer has reached the volume that Tesla has. BYDis probably the second closest company, in China.


Elon states the importance of manufacturing and reaching volume production. Tesla Giga Shanghai as been the quickest ramp of volume production for Tesla, after Tesla Fremont. Even with the over 1 million vehicles a year run rate that Tesla has, there is much more that Tesla needs to do to get to 20 million vehicles per year.


There must be innovation in manufacturing, that is the #1 most important thing for Tesla to achieve, even more important than any design. Elon Musk says, "Prototypes are easy, volume production is hard." You rarely hear Elon Musk say anything besides volume production is hard, and not just hard, but excruciatingly hard.


When you see that something is hard for Elon Musk and Tesla, you have to imagine that it is almost impossible for any other company to do. Why doesn't Elon Musk help other companies reach volume production to transition the world to sustainable energy faster? The world is mostly battery constrained for E.V.s and all companies would compete for scarce resources. Tesla makes the best EVs and they deserve the batteries right now.


China companies seem to be at about 10,000 units produced a month with the BYDDolphin just reaching that recently. It will be interesting to see if those companies can reach volume production, which would be 100,000 or more a month.


It gets harder after 10,000 a month. Tesla saves costs by removing radars and lumbar support, or gear levers. But the capital equipment is also a cost. A factory that produces 4 times as many units can generate much lower operating costs and deliver much more savings. Tesla has already hit 80,000 vehicles a month even without new manufacturing processes.


I think the 500,000 a year run rate for Giga Berlin is a big sandbag for Tesla. That means I think Giga Berlin will do way more than 500,000 a year in volume production. Tesla continues to innovate manufacturing and I think Giga Berlin will get closer to 2 million units per year.


Chinese EVmanufacturers need to cut costs in order to compete, however, they don't have the manufacturing volume and prowess that Tesla has. Legacy auto will have an even more difficult time as they transition away from their ICE vehicles.


VW has a plant in Wolsburg, Germany, which manufactures around 1 million units per year. This is 70 million square feet. The footprint of Giga Texas is 1/5 the floor space. Giga Texas will likely hit 2 million vehicles per year, which will make it 10 times as efficient as VW.'s plant, and this is just a rough estimate.


If other EVcompanies are going to build a significant number of EVsthey are going to have to build very large factories. Tesla has already done this with Giga Berlin, Giga Shanghai, and Giga Texas. They have these factories built and have a huge head start and already have a huge manufacturing and technology lead.


Source: Re-posted and Summarized from Jeremy Johnson at torquenews.


My Take: Tesla's ratio of cars produced per factory square foot is truly awesome.


Re Posted From: Tesla Has Amazing Production Volume

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