Interview Synopsis

Tesla update – manufacturing & production challenges

  • Multi Asset
  • Consumer
  • Europe

As Tesla heads into its busiest time in history, Third Bridge Forum interviewed a former director of manufacturing engineering at the company to investigate the current and future challenges facing the electric car maker – and how it can keep a competitive edge in a growing industry.

The Road Ahead for Tesla in a Growing Electric Car Market

The engineering specialist explored Tesla’s manufacturing issues, production numbers for 2019, and how the company’s success hinges on its ability to tackle its high labour costs and volatile gross margins. 

The former manufacturing engineer, who has worked for several solar start-ups, discussed whether China will continue to be a cash cow for Tesla and how the firm’s new China-based factory, Gigafactory 3, fits into Tesla’s future plans. 

With competition ramping up in the electric car space, the engineering specialist also examined which rivals pose the biggest threats to Tesla, including Porsche, Audi and Sinclair. He also talked about how new kid on the block Rivian will give Tesla a run for its money on the race to dominate the electric truck market. 

The former Tesla director spoke about the company’s new Model Y car, its expected demand, and whether it will outsell the Model 3, as well as how production of the Model Y could be impacted by the company’s recent staff exodus. The specialist warned that if Elon Musk gets too ambitious with the car’s design, then it’s a sure sign it will be delayed. 

Key trends in the electric car market were also investigated, including the customer demand for greater range and charging capabilities. With this in mind, the Interview examined whether Tesla can keep a competitive edge in these two crucial areas. The former director believes it can. 

However, as more companies step up their research and development into battery technology, it’s entirely possible another car maker will come up with a breakthrough that allows them to catch or even pass Tesla by, the specialist warned, although this threat, for now, is low. 

To access all the human insights from Third Bridge’s Tesla -Manufacturing and Production Challenges Interview, click below to view the full transcript.

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The information used in compiling this document has been obtained by Third Bridge from experts participating in Forum Interviews. Third Bridge does not warrant the accuracy of the information and has not independently verified it. It should not be regarded as a trade recommendation or form the basis of any investment decision.

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