The road to the future runs through Fremont. Tesla has always been the leader of the EV revolution, and (despite the media nonsense about “Tesla-killers”) that isn’t going to change any time soon. Tesla’s future depends on achieving long-term profitability, and that depends on sustaining volume production of Model 3. So the burning question of the day is, what’s really going on at the Tesla factory?
Hoping to answer that question, two well-known auto analysts, George Galliers and Arndt Ellinghorst of the UK firm Evercore ISI, recently spent two days at Tesla’s Fremont plant, where they were granted extensive access to both the facilities and the company’s workforce (as reported by the Financial Times).
To date, very few outsiders have been allowed inside the so-called “tent” (actually a lightweight aluminum structure) where Tesla quickly erected a new Model 3 assembly line. Around a fifth of the Model 3 cars built last quarter came off this line. “Given the speed with which the facility was put in place and the associated capex, ignoring the building’s fabric, it looked very much like general assembly at other auto plants which we have visited,” said Galliers and Ellinghorst.