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40 Steps & 90 Minutes To Produce Tesla Model 3

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Published on December 30th, 2018 |

by Matt Pressman

40 Steps & 90 Minutes To Produce Tesla Model 3

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December 30th, 2018 by Matt Pressman

Originally published on EVANNEX.

As Tesla’s production ramp for the Model 3 continues to improve, so does its process. Part of this can be attributed to engineering efficiencies. Business Insider reports, “After a recent visit to the company’s Fremont, California factory, analyst Pierre Ferragu of New Street Research, far and away Tesla’s most bullish analyst on Wall Street, said the sedan is ‘biblical’ in its simplicity.”

A look at the Tesla factory in Fremont, California (Image via Tesla)

“We could see the Model 3 assembled, from an empty body to a fully functional car in a bit more than 40 steps and 90 minutes, on a line about 1,000 feet long,” Ferragu said in a note to clients. “Its simplicity is unbelievable.”

In contrast, “A comparable car by any traditional automaker could take anywhere from 130 to 200 steps, Ferragu says, easily setting the Model 3 apart. The findings are similar to what UBS’ Evidence Lab found when tearing down a Model 3 earlier this year, finding ‘next-gen, military grade’ tech below the finish.”

As production picks up at Tesla’s factory, more Model 3s are hitting the roads.

“Model 3 has a bit more than a kilometer of cable, vs. 3x that for equivalent traditional premium cars. But this still feels half-baked,” Ferragu said. “Ultimately, a car with a battery, a motor or two and a screen should have 2 power systems (high and low voltage) and one communication network. For that, about 100m of cabling per car should be necessary.”

Ferragu acknowledges Tesla has plenty of room for improvement. A “crowded mess” and “unnecessary complexity” are still evident from Tesla’s early ramp phase of the company’s Model 3 production process, according to Barron’s. However, as production steadily improves, Ferragu says, “The road to 7,000 units per week seems easy, and limited capital expenditures will be required (in the low tens of millions) to get to 10,000.”

More on Analyst Pierre Ferragu’s observations of the Tesla Model 3 production line at the company’s Fremont factory (YouTube: Wochit Tech)

“We don’t know for sure what demand will ultimately be, but we know that from here, Tesla will expand its price range, introduce leasing, and expand internationally,” Ferragu notes. “All these levers combined have a lot of depth and should be more than enough to get to 10,000 Model 3 per week at the end of next year.”

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About the Author

Matt Pressman is all about Tesla. He’s a TSLA investor, pre-ordered the Model 3, and loves driving the family's Model S and Model X company cars. As co-founder of EVANNEX, a family business specializing in aftermarket Tesla accessories, he’s served as a contributor/editor of Electric Vehicle University (EVU) and the Owning Model S and Getting Ready for Model 3 books. He writes daily about Tesla and you can follow his work on the EVANNEX blog.

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More Insight Into Tesla’s New Board Chair, Robyn Denholm

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Published on December 29th, 2018 |

by Matt Pressman

More Insight Into Tesla’s New Board Chair, Robyn Denholm

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December 29th, 2018 by Matt Pressman

Originally published on EVANNEX.

Questions arose when Tesla announced its new board chair, Robyn Denholm. How might the seasoned executive interface with Tesla’s hard-charging CEO Elon Musk? Richard Walters (via Financial Times) reports that “Ms Denholm has always described herself as direct — the product of a pragmatic Australian upbringing that has left her with a no-nonsense view of the world.”

It’s reported that, “Ms Denholm grew up in Milperra, a small town in Sydney’s sprawling western suburbs. Her parents owned a service station, where she used to pump petrol, do the accounts and repair cars — a pursuit that got her interested in automobiles.” Denholm went on to work at “Toyota in Australia, where she rose to the position of national finance manager and became one of the few women to reach a senior level at the time.”

Later, “Ms. Denholm left Australia for Silicon Valley,” transitioning into the tech sector working with the likes of Sun Microsystems and Juniper Networks. And according to Pierre Ferragu, a Wall Street analyst who covered Juniper Networks, “She has a proven record for dealing with very high-ego individuals.”

Ferragu says, “Robyn is the exact opposite: she can remain very calm, very stable. She is a less visible personality, but she’s very good at driving things without having to be in the lead.” He adds, “She has a quiet self-confidence … very on top of what was happening in the business.”

Denholm was recently named Tesla’s new board chair (Photo by Jakob Härter, CC BY-SA license)

Denholm has taken calculated risks in her career to succeed. “I don’t jump out of planes or bungee jump or any of that stuff,” she told The Australian. “But I do take professional risks. You make the best decisions you can with all the information you have — and you have to move quickly. You’re not pushing hard enough if you never make mistakes.”

Denholm has been on Tesla’s board for four years, serving as non-executive director and chairing the board’s audit committee. In the Australian Financial Review, she was asked about her experience at Tesla and replied, “It’s great, and he [Musk] is great, he’s just phenomenal.”

In turn, Musk has admiration (and praise) for Denholm. He tweeted, “Would like to thank Robyn for joining the team. Great respect. Very much look forward to working together.” According to Tesla, “Robyn will be leaving her role as CFO and Head of Strategy at Telstra, Australia’s largest telecommunications company,” in order to serve as Tesla’s new board chair on a full-time basis.

Denholm describes how “constructive conflict” can improve collaboration (YouTube: Telstra Wholesale)

The road ahead for the electric carmaker won’t be easy. Musk has noted that, “Tesla’s like a drama magnet.” But Denholm welcomes conflict. She’s openly discussed nurturing conflict while “teasing out those ideas” that bring about successful outcomes. At Telstra (see video above), she said, “I actually think conflict is great … I mean constructive conflict where you’ll actually debate around an idea or go backward and forwards on how to iterate on an idea. I think that’s really important.”

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