How Tesla is doing everything to get Model 3 cars out the door
Comment of the Day

July 02 2018

Commentary by Eoin Treacy

How Tesla is doing everything to get Model 3 cars out the door

This article by Dave Gershgorn for Quartz may be of interest to subscribers. Here is a section:

In an effort to drastically ramp up production, Tesla employees are now tinkering with the core designs of the Model 3 car and the production process, detailed by a New York Times report (paywall), something that experts say is unprecedented. Executives at Tesla decided that the car didn’t need so many spot welds holding the underbody together, so engineers found 300 “unnecessary” welds and reprogrammed the welding robots cut them from the production process.

Eoin Treacy's view

Tesla made its 5000 cars a week target but if the company is cutting corners in manufacturing what are the safety implications of that decision going to be for the thousands of people waiting in line for the Model3?

The share reversed an early advance before closing off the lows. Everyone is going to be watching how many cars the company produces this week and whether the 4th of July holiday will used as an excuse for missing this week’s target.
 I’ve mentioned on a number of occasions that Tesla is akin to a canary in the coal mine for high yield bonds. The High Yield ETF (JNK) broke downwards to new reaction lows today. A clear and sustained move above the trend mean would be required to question medium-term scope for continued downside. 

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