Articles, Blog

Why Tesla’s Gigafactory Shanghai Is More Efficient Than The Fremont Factory

February 3, 2020

This is a really awesome slide which I
think goes to show the Fremont factory layout versus Gigafactory Shanghai
layout. Pace of innovation. Why’s Tesla able to build a factory faster? Get it
up and running faster? Have the gross margins and capex or have the gross
margins be higher and have the capex be less? What is Tesla doing at the factory
level, you know, the machine that makes the machine. It’s really impressive.
So you can see that in the previous Tesla factory they had stamping
going to welding going to assembly or going to paint shop then going to
assembly or some cars go to this assembly. Like just a really confusing
hodgepodge of layout because they were occupying this GM and Toyota Factory and like, it just wasn’t designed from scratch, from the ground up and that
meant Tesla had a more trickier time building exactly what they wanted but
they learned from this, from Fremont and have really been able to take it to the
next level with Model 3 Shanghai and if you look at the Shanghai pictures from
the outside you’ll see, you’ll notice it looks exactly like this. Stamping. Welding.
Paint shop. Assembly. It’s like a big U. So simple and you allow the trucks to
deploy the parts exactly where they’re needed when they’re needed on the supply
chain. This is a huge part of why the Model 3 production ramp took so long and
sort of had hiccups and why they had to build the tent was because they had this
extremely complicated underneath the production line conveyor belt system to
deliver parts at the certain right time but if you don’t have the exact part of
the exact right time it can mess up the entire production process and that was
happening because it was way too complex – this system of conveyor belts.
So they said screw it. We’ll build the tent. If you look at the tent, it’s this u-turn
thing very similar to get your factory Shanghai. And so this is a really cool
example layout. I love this slide of just what Tesla’s doing at the
manufacturing level.

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  • Reply John theux February 2, 2020 at 8:39 pm

    What are all those doors for in the Shangai gigafactory if all the parts start in the stamping part of the factory?

  • Reply Mark Lawrence February 2, 2020 at 8:39 pm

    Going to be a great year.

  • Reply John theux February 2, 2020 at 8:41 pm

    "It's the machine that build the machines" -> All future gigafactories are going to be build the same way so they can mass produce them?

  • Reply Mark Lawrence February 2, 2020 at 8:43 pm

    I love how Tesla learned from how sloppily the Fremont factory was setup. Not because of Tesla but tje previous owners Toyota and GM. What were they thinking when that place was built?

  • Reply House Essentials February 2, 2020 at 8:47 pm

    Even if GF3 is better built than GF1, the real problem with building the Model 3 initially was that Tesla tried to automate too much.

  • Reply Mitchell Barnow February 2, 2020 at 9:03 pm

    What is going to happen to China's economy when people cannot go to work and earn money so that they can buy Teslas, because of the virus's outbreak?

  • Reply Barry Gamble February 2, 2020 at 9:13 pm

    There is about 150 people in the immediate Shanghai area infected with the Coronavirus and they still are not enforcing confinement there. The factory will remain closed for months, a dead asset depreciating on Tesla books. They are not going to make any money this quarter. Very 😢. I have sold covered calls on my Tesla shares for a little relief from the coming pain. I piss poor situation for me, a Tesla fan. Sold May 660’s on Friday.

    From The NY Times it’s clear each person will infect on average 2-3 other people when there is no confinement.

  • Reply Jesse Ojile February 2, 2020 at 9:28 pm

    How concerned are you about the factory being shut down currently?

  • Reply V Nelson February 3, 2020 at 1:12 am

    Elon should just buy a Borg cube. He probably invented it anyway.

  • Reply Green gold February 3, 2020 at 9:25 am

    I wonder what effect the virus has had on gigafactory 3

  • Reply MICHGO1 February 3, 2020 at 9:48 am


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