Tesla Restructured By Elon Musk To Address Bottlenecks In Tesla 3 Production

By JD Lasica from Pleasanton, CA, US (Elon Musk) via Wikimedia Commons

Tesla is currently undergoing a major restructuring as the firm attempts to sort out its organisational problems and bottlenecks that are delaying the production of its latest electric car, placing its financial targets at risk.

During the earnings call of the California-based Tesla a fortnight ago, the founder of the company, Elon Musk, warned regarding a shake-up.

In a memo, Musk, who is also the chief executive of Tesla, informed employees: “to ensure Tesla is well prepared for the future, we have been undertaking a thorough reorganisation of our company.

“As part of the reorg, we are flattening the management structure to improve communication, combining functions where sensible and trimming activities that are not vital to the success of our mission.”

There were no details provided of where activities were being cut at the firms. However, Musk stressed that the company were still hiring employees.

He stated: “To be clear, we will continue to hire rapidly in critical hourly and salaried positions to support the Model 3 production ramp and future product development.”

The company has missed production targets for its Model 3 electric car repeatedly. The Tesla Model 3 is a lower-priced vehicle that is intended to make electric motoring go mainstream.

Tesla has a target of building 5,000 Model 3s per week. However, it has yet to achieve this rate. At the most recent earnings report of Tesla, Musk said that the figure should be reached in approximately two months, with the company being able to “largely overcome” the production bottleneck which had resulted to the delays to its ramp-up.

One of the biggest issues was the problems regarding the production line dealing with the battery modules of the cars.

Tesla was also attempting to automate as much of the work as possible, which also contributed to the delays.

In a tweet that Musk posted on Sunday, he described as “fair criticism” a report that Tesla was doing the same mistakes that General Motors made during the Eighties when it spent billions on a considerably unsuccessful attempt to automate the manufacturing of cars.

In the tweet, the billionaire entrepreneur added that his company had a “hackathon going on right now to fix the two worst robot production chokepoints.” He also said that the attempt“looks promising.”