Tesla Inc. has recently faced an abundance of problems in its production. Just two months ago in February, the company had opted to bring to halt the Tesla Model 3 production line at its Fremont, California plant for a costly four days.
Then, on Monday, the company has once again, announced its brief suspension of the Tesla Model 3 assembly line, as reported by Reuters. The company has used the phrase “planned production pause” in its announcement on Monday.
What exactly is the issue amidst the production of Tesla Model 3 sedan?
According to a Tesla Inc.’s spokesperson, “These periods are used to improve automation and systematically address bottlenecks in order to increase production rates.”
This was also expressed in the announcement on Monday.
While that is clearly a polite response to maintain the firm’s reputation, Elon Musk, the founder of Tesla Inc. has voiced his thoughts on Twitter on Friday. Musk has never before, admitted to the public, of his oversight towards the matter. To the surprise of many, he has done so through Twitter.
Yes, excessive automation at Tesla was a mistake.
“To be precise, my mistake. Humans are underrated.”
As a company that is known for its high-technology nature, Elon Musk has always leaned on the use of robotics and computerized methods in its assembly line. In fact, Musk is infamously known for belittling other automakers and manufacturers in the line of technology over their outmoded manufacturing techniques. Reuters recalls his previous assertion on manufacturing an “Alien Dreadnought” at its Fremont plant by 2018. We are almost halfway through the year, but it seems that Tesla Inc. is falling behind its expected goals.
Due to the many postpones in the production line of Tesla Model 3 sedan, the company initially tried to compensate for that by attempting to manufacture two thousand and five hundred cars on a weekly basis before the end of the second quarter.
Ironically, the complications that have arisen are, for the most part, due to its manufacturing approach. The assembly line for model 3 sedan has encountered many challenges because of its heavy reliance on robotics.
Within the same day, Elon Musk again tweeted about the progress of his company. He insists that by the third and fourth quarters, the company will be able to turn a profit with positive cash flow. He claims that the need to raise funds is unnecessary.
However, external analysts have stepped forward to debunk his claims. Some have said that because of the firm’s inability to deliver the motor vehicles to consumers on time or even at all, intending to increase revenue is simply out of the question.
On Monday, the market share of Tesla Inc. had suffered from a three percent decline and has not recovered since. On top of Musk’s confession of the existing problem, the firm is still impacted by several allegations. This includes the year-old amended charges towards Musk’s possibly intentional misrepresentation of the state of Model 3 production towards investors. In addition, rumor has it that the company has intentionally underestimated the number of injuries and accidents that have happened in the factory.
That is not the extent of ill-treatment that employees of Tesla Inc. have received. According to BuzzFeed, the company has projected their incompetence on its employees by requiring them to use up their vacation days or even go for unpaid vacation during its brief production pause.
While it is understandable for anomalies to occur amidst production, it seems like Tesla Inc. has, itself (or Elon Musk, himself), played a significant role in the current problem. The company has previously chosen to pass through the testing process for early access to the market. This, in turn, led to a number of problems in its manufacturing line.
When will these profit-focused corporations learn that money simply isn’t everything?
Featured image via Wikimedia