Musk Pivots Tesla to Be Less Automated and to Do More In-House

(p. B2) Mr. Musk became deeply interested in improving and automating the car-building process after painful struggles to increase production of the company’s first SUV, the Model X, in 2016.

In a rare public acknowledgment of error, Mr. Musk conceded in 2018 that he went overboard with his automation attempts for the Model 3. That mistake snarled the company’s efforts to ramp up production in 2017 and 2018—a dark period that shook investor confidence in his ability to execute on his vision for Tesla to evolve from a niche luxury brand into a mainstream electric-car company.

. . .

The factory expansion is a further acknowledgment by Tesla that some of its founding assumptions were off. The original business plan for the company, founded in 2003, was to create a car company resembling more of a personal technology company, rather than a traditional auto maker, by outsourcing vehicle assembly much like how gadgets were made.

But that effort was eventually abandoned as Mr. Musk began to realize the importance of controlling more of a company filled with complex logistics and manufacturing nuances.

He has since brought in-house more of his supply chain than is normal for a car maker, including seat manufacturing, and developed greater expertise in battery cell manufacturing.

For the full story, see:

Tim Higgins. “Tesla Races To Boost Vehicle Production.” The Wall Street Journal (Friday, July 24, 2020): B1-B2.

(Note: ellipsis added.)

(Note: the online version of the story has the date July 23, 2020, and has the title “Tesla Prepares for Hiring Boom as Elon Musk Targets Manufacturing Expansion.”)

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