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JP Morgan admits Tesla’s Giga Press advantage, but posts strangely low output estimate

(Credit: Gabeincal/YouTube)

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The advantages of Tesla’s Giga Press machines have been acknowledged by JP Morgan in a recent analysis, with the Wall St firm noting that the massive contraptions could very well be a game-changer for the electric car maker. However, amidst the firm’s optimism, JP Morgan’s analysis did feature something quite strange, particularly on estimates about the Giga Press’ annual output. 

JP Morgan noted that it visited LK Tech, the largest die casting machine supplier in the market, for its analysis. The firm stated that it was able to meet the Founder and CEO of LK Tech and the Head of IDRA, the company’s Italian subsidiary that has so far provided Giga Presses in the Fremont Factory, Giga Berlin, and Giga Texas. Tesla’s Giga Shanghai has been spotted with Giga Presses that are branded with LK Tech. 

The Wall Street firm’s analysis showcased several insights that have been discussed by industry experts such as Sandy Munro in the past, such as the Giga Press’ capability to simplify Tesla’s vehicle assembly process by replacing 70 pieces of metal into a single-piece megacast. JP Morgan also acknowledged that with the Giga Press, Tesla could adopt a lightweight, cost-efficient, and more straightforward production process, giving it an edge against its competitors in the auto segment. 

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Things become more interesting when JP Morgan shared its estimates on the Giga Press’ output, however. In a section listed as “The Maths,” the Wall Street firm assumed that each Giga Press would be capable of producing one part every 4-5 minutes, or about 240-300 seconds. At this rate, the firm estimated that one Giga Press would have an annual output of 70-90k units, which meant that Tesla would need about 8-10 Giga Presses to manufacture 350k Model Y per year. 

“Assuming the casting machine produces one body part every 4-5 mins, around 70-90k units of annual production can be generated from one Giga Press. Given two Giga Presses are needed for each Model Y (one front ad one rear body part), it is estimated that around 8-10 Giga Presses are needed for the production of 350k units of Model Y,” JP Morgan wrote. 

This estimate is notably lower than what has been expected by the electric vehicle community, mainly since Die-Casting Machine #1 (DCM1), which was recently deployed in the Fremont Factory, has already been observed to have a cycle time of about 170-200 seconds as per drone videos of the contraption. This is already quicker than JP Morgan’s estimates, and this is also with the machine’s operations still being optimized. 

Specifications of the Giga Press from IDRA also indicate that the machines could have a cycle time of ~80-90 seconds, allowing an output of 40-45 castings per hour or about 1,000 castings per day. Considering that Tesla is still in the process of mastering its house-sized machines, there seems to be a good chance that the electric car maker could produce 350k Model Y in one year using far less than 8-10 Giga Presses. 

Check out DCM1’s operations as of late January in the video below.

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Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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Tesla just made Service even easier and more convenient

The new feature is rolling out to iOS users now; we have not heard any confirmation from Android phone users whether they are receiving it too.

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Credit: Tesla

Tesla just made servicing your vehicle even easier and more convenient than it already is.

All it did was add a new section to its smartphone app.

Tesla has officially launched a new Maintenance tab that estimates the repair date and cost, and uses vehicle data to determine if any part is in need of replacement.

It can be found by accessing the app, going to Service, then hitting Request Service, and then Maintenance.

The new feature is rolling out to iOS users now; we have not heard any confirmation from Android phone users whether they are receiving it too. Since it is not a vehicle capability, we do not believe Tesla will delay the release of the feature to Android phones.

Teslas are already well known for having extremely low maintenance needs, and semi-annual check ups usually only require a tire rotation and some additional windshield washer fluid. There is not a need for things like oil changes or other things that are routinely needed on combustion engine cars due to the lack of parts.

Additionally, the small addition to the company’s smartphone app will help facilitate needs for Service, and could help relieve some congestion, while also streamlining the repair process for technicians.

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Tesla to make app change for easier communication following Service

One of the biggest complaints about owning a Tesla is Service wait times, as availability can be extremely limited in some areas. However, Tesla has done a lot to work on increasing the number of Service centers it has, while also working hard to streamline service and make it less time-consuming.

Tesla has aimed to have an F1-style service experience, but it has not worked out that way. With that being said, there are significantly fewer complaints with Tesla’s Service division than in years past. With the presence of Mobile Technicians and more refined Service processes, things are definitely improving.

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Elon Musk hits back at former Tesla employee who disagrees with pay package

Tesla is worth more than all other automotive companies combined. Which of those CEOs would you like to run Tesla?

It won’t be me.

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elon musk speaking
Credit: TED

Elon Musk gave a tough response to a former Tesla employee who spoke out on X about the structure of the CEO’s pay package, arguing that it is an overpayment and would not generate enough shareholder value.

Without a doubt, the biggest issue on the bill at this year’s Tesla Shareholder Meeting in November is that of the pay package that was proposed to CEO Elon Musk.

As the Shareholder Meeting approaches, Tesla is urging those investors to vote in support of Musk’s pay package. So far, the community has been overwhelmingly supportive of giving Musk his massive payday, which could give him $1 trillion in additional holdings if he completes each of the outlined performance tranches.

However, there are a handful of institutional and individual shareholders who have pushed back against the package, either because of its value or because they feel it does not benefit shareholders enough.

Last week, we reported that Institutional Shareholder Services (ISS) advised voting against Tesla’s pay package for Musk. The firm said the payday would give Musk”extraordinarily high pay opportunities over the next ten years,” and it would “reduce the board’s ability to meaningfully adjust future pay levels.”

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Tesla CEO Elon Musk’s $1 trillion pay package hits first adversity from proxy firm

Additionally, it called the value of the pay package “astronomical.”

On Saturday, a former Tesla employee said on X that Tesla’s proposed pay package for Musk would “barely beat inflation and it would underperform the S&P 500 considerably.” Additionally, he said:

“Sorry, Tesla, some of us (and supposedly, ISS too) simply don’t think that underperforming the S&P 500 this much is worth paying somebody 20 billion dollars worth of company value.

As a fan, I love Tesla, I want it to succeed. As a shareholder, I don’t want Tesla to over-pay for its CEO I strongly believe that the 2025 pay package proposal would over-pay for its CEO, and that other competent CEOs could grow Tesla just as much with way less political drama and cost investors much less that this proposal.”

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Musk responded bluntly:

“Tesla is worth more than all other automotive companies combined. Which of those CEOs would you like to run Tesla? It won’t be me.”

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It seems the worry about Musk’s potential involvement in politics still looms to many, based on the responses to Musk’s post, which frequently mention that as a downside of his last year as Tesla CEO. However, Tesla’s Board confronted that directly.

In its proxy filing after announcing the pay package, Tesla said that it had three commitments, one of which was that the company would “receive assurances that Musk’s involvement with the political sphere would wind down in a timely manner.”

Tesla Board takes firm stance on Elon Musk’s political involvement in pay package proxy

Musk’s previous pay package was approved by shareholders twice, but it never made it to the CEO because of a lawsuit with the Delaware Chancery Court brought forth by a small-time shareholder.

The response from Musk does seem to show that if this time is no different, he will inevitably step down as CEO in the coming years.

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Tesla rivals are lagging behind alarmingly in this crucial EV necessity

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tesla supercharger
Credit: Tesla

Tesla rivals are lagging behind the company in alarming fashion in this crucial EV necessity: charging.

Tesla has had a long-standing reputation for having the most expansive electric vehicle charging infrastructure, and even as other companies have launched their own as part of the vehicle manufacturing, nobody seems to keep pace with the EV leader.

A report from Paren exhibited this trend in Q3, showing that Tesla overwhelmingly dominated EV charging stall installations over the past three months. This data is based on U.S. installations, where Tesla has long held a dominating position as the leader in overall electric vehicle sales for many years.

In Q3, Tesla installed 1,820 new chargers in the United States, bringing its total presence to 34,328, an all-time market share of 53.2 percent of all charging stalls in the country.

What’s alarming is the fact that all other networks — ChargePoint, Red E, Electrify America, EV Connect, EVgo, Ionna, Blink, Pilot Flying J, and Rivian Adventure — only installed 841 chargers collectively in Q3. That is nearly 1,000 units behind Tesla, despite there being nine companies contributing as competitors.

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These nine networks have 10,055 stalls in total, the data from Paren shows, accounting for 15.6 percent of the chargers in the United States.

EV charging is such a crucial part of the ownership experience, and also a part of the ongoing expansion of EV adoption in the United States.

As more people buy EVs and they become a more prominent form of passenger transportation, more chargers are needed. Many owners charge at home, but charging options in public are important to have for traveling, commuting, and for those who do not have access to residential charging.

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With Tesla opening its Supercharger Network to the majority of EV brands over the past two years, things have gotten better.

It has been alarming to see so many companies involved in EV infrastructure essentially accept the gap between Tesla and themselves; not a single company has tried to up its pace to catch up to what Tesla has.

When it comes down to it, as long as there is charging, the manufacturer does not truly matter.

However, it would be nice to see Tesla have some competition in the space, but with its domination and head start in the infrastructure division, it seems the company will have this competitive advantage for years to come.

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