Tesla Is Going All Out To Race The Model 3 To Production: Analyst

Posted: Dec 30 2016, 1:12pm CST | by , in Cars & Vehicles


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Tesla is Going All Out to Race the Model 3 to Production: Analyst
  • Analyst reveals Tesla is racing to make production level Model 3

Jennifer Liang from research firm KGI claims Tesla’s supply chain is going all out to reach the deadline

Tesla’s deadline to assemble all production parts for Model 3 is just 6 months away. Ana analyst called Jennifer Liang from a respected Chinese research firm called KGI just made observations on Tesla’s supply chain.

According to Liang Tesla is all out and racing to reach its deadlines and get the Model 3 ready for production. Most importantly Tesla is working with system integrators (SI) in the supply chain. In this way Tesla is simultaneously strengthening automation.

In her notes (via StreetInsider & Electrek), Liang went on to say for Tesla Model S and X all the parts and components were shipped to their Fremont factory in California. In the previous supply chain management the sub- and final assembly of the parts was carried out in the factory.

Whereas this time Tesla has employed two Sis in Thailand and China which will carry out various sub-assembly of the Model 3 before reaching the US.

Another move by Tesla to accelerate Model 3 production was the acquisition of Grohmann Engineering (DE). Since DE is a specialist in automated manufacturing and will prove to be quite instrumental for Tesla.

Liang also noted the backlog of over 400,000 pre-orders makes Tesla’s production goal quite clear. They have volume visibility of its production goals and can thus work with supply chains to achieve it successfully.

Tesla has undeniably come a long way and now it has no difficulty in convincing suppliers to work with them. This may also contribute to Tesla reaching its production goal.

Liang mentioned suppliers like Bizlink; a Taiwanese wiring harness supplier, and Hota: an automotive part supplier, are working with Tesla. Liang also predicted Tesla Model S and Model X will see a 50% growth in 2017.

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