Tesla, the American electric car manufacturer, is looking to revolutionize the traditional assembly line method of car production by building different parts of a car simultaneously in specific spaces and then combining them. This new approach could reduce Tesla’s manufacturing footprint by more than 40 percent and lead to faster and cheaper construction of future factories.
According to Tesla, this change in production process could potentially cut production costs in half, which is crucial for their goal of creating a more affordable electric car to meet slowing demand. CEO Elon Musk has called this new system “revolutionary” and more advanced than any other production system in the world.
Despite this uncertainty, Tesla delivered 1.8 million cars last year and aims to produce 30 million cars by 2030. Achieving this goal will require significantly cheaper cars in their lineup. The success of this new production system could be a game-changer for Tesla’s future growth and profitability. However, analysts caution that Tesla’s new system is unproven and may come with inefficiencies and risks. A recent analysis by Bloomberg suggested that the new modular manufacturing process might only reduce costs by a third, not half as Tesla claims.
