January 21, 2018

Musk Still in Production Hell as Gigafactory Delays Model 3

08 November 2017, 01:09 | Frank Carlson

Now, Elon Musk is keeping vigil at the Gigafactory, where the Model 3 is manufactured, spending most of his waking hours - and then some typically meant for sleeping - there, even conducting Wednesday's call from the plant.

The production problems helped produce a net loss of $3.70 per share in the quarter - 62 percent greater than the anticipated loss of $2.28. "In the grand scheme of things", Musk said, "this is a relatively small shift".

Tesla brought its own top engineers in to focus on the battery module manufacturing automation to "fine-tune the automated processes and related robotic programming". After launching the mass-market Model 3 sedan, Musk at the time said the automaker would manufacture 20,000 of those vehicles by December, but had only produced 260 as of Oct. 2. Although the company had promised to deliver 1,500 Model 3s in Q3 2017, it only delivered 266 total.

Tesla will no longer reach its long-stated goal of producing 5,000 Model 3 cars per week in 2017, pushing that deadline back amid production hiccups and a massive $619 million quarterly loss.

Trump previews 'major discussions' with Japan on North Korea, trade
The two passed up the region's famed Kobe beef in favor of the American version, which is favored by Trump, a famed picky eater. It comes as Trump sets off on a whirlwind tour of Asia to discuss North Korea's nukes with diferent leaders.

Still, Musk acknowledged that he'd expected to have made more progress already, and "be more like in level seven by now".

So far, it's been a rough ride. The company cited the battery assembly line at its Nevada Gigafactory as the primary constraint in Model 3 production, adding that it will reduce Model S and Model X production by 10 percent in the fourth quarter to move inventory and dedicate more manpower to Model 3 output. Tesla sold $139 million of these credits in Q3 2016, and $100 million just last quarter, but this quarter's ZEV sales totaled less than $1 million. Zone two is the really big issue, and one in which a subcontractor dropped the ball, and then Tesla only realized how badly it had been dropped very recently.

Musk and Chief Financial Officer Deepak Ahuja wrote in a letter to shareholders that it was difficult to predict how long it will take to resolve all bottlenecks, or when new ones will emerge. The researchers used artificial intelligence to teach their system the preferences of each voter, then aggregated them, creating a "distribution of societal preferences", in effect the rules of ethnical behavior in a car. Highlighting the complexity of juggling a production ramp across not just a global supply chain but across literally dozens of individual production lines that are effectively prototypes, Tesla shared that some manufacturing lines have only demonstrated a throughput rate of 500 units per week. A manufacturing presence in the country could boost its revenue in the world's largest electric vehicle market. He recalled being on the assembly line at 2 a.m. on a Sunday to help diagnose robot calibration issues and said work was being done seven days a week to solve the problems vexing the gigafactory.

Other News

Trending Now

Evans suspended for hit on Saints' Lattimore
That sparked a skirmish, and Evans was flagged for unnecessary roughness when the teams were eventually separated. The Tampa Bay Buccaneers already had an uphill climb going into Week 10 without Jameis Winston under center.

Broadcom offers to buy Qualcomm in $130 billion deal
However, according to the FT , Qualcomm is set to reject the deal, raising the prospect of a fight for the future of the company. Qualcomm said in a statement Monday morning that it had received the offer and its board of directors would be reviewing it.

New Zealand win second T20 against India
I don't think the pitch will change too much, but the dew might be an advantage in the second innings. Munro said he found the most success when he watched the ball, rather than premeditating his shots.

Carter Page met with Russian official during 2016 trip to Moscow
Sessions's participation in the gathering was detailed in court documents released Monday by special counsel Robert Mueller III. Page said one of the people he met was a "senior person", but would not confirm the person's identity.

Paradise Papers: How an island and Ireland aided Apple's megaprofits
The Apple back taxes are yet to be reclaimed by the Irish government but the Google bill has been settled, Vestager said. Apple came under pressure in 2013 in the US Senate, when CEO Tim Cook was forced to defend its tax system.

Michigan State-Penn State game delayed by lightning
The tie didn't last long as Penn State scored on the following possession and benefited from poor tackling by Michigan State . McSorley hit DaeSean Hamilton on a crossing route for a 31-yard touchdown and 7-0 lead with 5:40 left in the first quarter.

Iranians hold rallies to mark US Embassy takeover
Trump's administration has taken a tougher line with Iran, threatening to tear up an global accord on its nuclear programme. The US cut its diplomatic relations with Iran following the embassy takeover and has had no diplomatic relations since.

Turkey, US resume limited mutual visa services
Turkey's embassy in Washington has also said it will process visa applications from United States citizens on a limited basis. Turkey also suspended the issuance of visas to USA citizens, according to Trend.

Fifty Shades Freed trailer: Things heat up in The Final Chapter
Now, the first full-length trailer has finally arrived, and though we didn't think it possible, we're even more intrigued. I've gotten to deal with certain things in a more grown up way. "I have a better outlook on certain parts".

Patrice Evra Must Not React Insists Rudi Garcia
Evra was sent off as a result, becoming the first player to ever receive a red card before kick-off in a Europa League match. Marseille boss Rudi Garcia revealed afterwards Evra had reacted to taunts from the fans, but still criticised his actions.