Tesla had to rework more than 4,300 of the 5,000 Model 3 vehicles they built as the electric automaker was working to meet a crucial deadline, Business Insider reported Wednesday, citing internal documents.
The Silicon Valley-based company reworked slightly more than 4,300 Model 3 vehicles, the report notes. Each car took an average of 37 minutes to repair, but the high number of reworks put Tesla at a competitive disadvantage as other automakers don’t require as many repairs.
Only 14 percent of the vehicles Tesla made didn’t need rework, whereas a competitive plant will pass 80 percent of vehicles that don’t need repairs, according to Ron Harbour, a consultant at Oliver Wyman.
“A competitive plant will pass 80%-plus vehicles that do not require repair. I would say the average plant is about a 65-80% range,” Harbour told BI. “It’s a direct impact on their labor productivity if they have to add additional labor hours for repair,” he added, referring to the impact repairs have on overall productivity on other vehicles in the company’s stable.
Reworking vehicles often entails minor repairs that don’t affect overall productivity, a Tesla representative said.
“Our goal is to produce a perfect car for every customer,” the representative said. “In order to ensure the highest quality, we review every vehicle for even the smallest refinement before it leaves the factory.” (RELATED: ‘Thin-Skinned Bully’: Elon Musk Is Owning The Media And CNN Does Not Like It)
Tesla built roughly 7,000 vehicles in seven days at the end of June as CEO Elon Musk and Tesla staff worked at breakneck pace to meet deadlines. Musk promised investors that Tesla would make 5,000 Model 3s per week to keep his legion of critics at bay. (RELATED: Ford’s Exec Pokes Fun At Tesla For Cheering After Building 7K Vehicles In One Week)
The company has reported only two profitable quarters in eight years and is deeply in debt as analysts question the company’s viability. The critiques have prompted Musk to lash out against journalists who he believes are trying to take down the company he built.
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