The company is moving to what it calls an “unboxed” approach, which is more like building Legos than a traditional production line. Instead of a large, rectangular car moving along a linear conveyer belt, parts are assembled simultaneously in dedicated areas and then the subassemblies are all put together at the end. Tesla says the change could reduce manufacturing footprints by more than 40%, allowing the carmaker to build future plants far faster and at less expense.
The problem is that investors haven’t heard many details about how Tesla has progressed with the idea since then, even as Chinese automakers have slashed costs and Detroit carmakers have refocused their efforts on cheaper models, as well. That process, Tesla executives say, is rife with inefficiencies. Moving a car-sized “box” through a factory takes up a lot of space. Painting an entire machine, instead of just the panels that need it, takes time and wastes energy. And working off of a hulking frame means only a few people can assemble their parts at a given time.
Paint has long been the most expensive part of any auto plant: The high heat required for automotive paint is energy intensive, and there are strict emissions requirements. The throughput of the paint shop largely determines a plant’s total output, according to auto plant experts. But it’s not the first time Tesla has made significant changes to improve long-held manufacturing practices.