Tesla has been having a rough go at it lately as they’ve failed to meet their production quotas for the Model 3. What’s more, CEO Elon Musk recently backtracked on how many of the mass-market sedans would be produced in the next year, and when exactly we could expect to see the previously promised figures regarding it. The company is in a sort of “production hell,” and they’re going to have a hell of a time trying to get out of it.
Earlier last month, Tesla was shown to be very behind on the production schedule with the new Model 3 sedan. Because of bottlenecking in production, the company couldn’t produce anywhere near what they intended. Despite this potentially huge problem that the company didn’t seem too concerned about, Musk still confidently boasted they’ll be able to put out 10,000 Model 3’s a week by 2018. That is no longer the goal, as the CEO admitted to the company dropping the ball and only just now realized which ball(s) were dropped.
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The production schedules are often times very aggressive and almost unrealistic for Tesla. The company wants to build 500,000 cars next year, aiming to push out 1 million a year by 2020. This is going to be hard if they can’t reach customers who aren’t already Tesla fans. Quality and delivery issues need to be fixed, as everyday car buyers aren’t just going to forgive that kind of behavior. With other automakers churning out electric vehicles on par with the Model 3, they need to up their game and get out of this hole they’re in.
As it is, those in line for a Model 3 who aren’t employee customers are going to have a long and annoying wait to get theirs, making for more company stresses. The fact that the company let go of over 700 employees a couple of weeks ago doesn’t bode well for the speed of production either. Things become even muddier for them as they’re now facing several lawsuits due to the alleged “improper” fashion of the handling of the firings. There have also been previous, unofficial complaints about poor working conditions, as Tesla allegedly fails to issue employees proper breaks for meals and rests during the workday.
Almost all the issues the company is facing right now is more than likely due to the troubles it’s having rolling out their Model 3. Not only is the production process and supply chain imperfect, but the ideology behind getting this all done is lead by a measure of overconfidence without a real contingency plan to account for when things go wrong. This has led to a continuous slew of misinformation, deadline pushbacks, and overall disappointment. Hopefully, when the company reassesses its goals, something more manageable and satisfactory can be accomplished in everyone’s benefit.