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Tesla Giga Texas is a clean slate for launching its next-gen manufacturing processes
Tesla’s new Giga Texas facility will the second United States-based location for the all-electric automaker to manufacture its vehicles. With its first being located in Fremont, California, which has been in operation for Tesla since 2010, it may be planning to use its new Texas plant as a “clean slate” for manufacturing testing. With a widespread focus of the company being primarily set on making its vehicles faster, in larger amounts, and with better quality than ever before, a fresh spread of production lines in a new plant that is close to home is ideal for CEO Elon Musk, who announced the Texas plant during the Q2 2020 Earnings Call.
But apart from the new plant, the Q2 2020 Earnings Call included another big piece of information that was repeatedly discussed: manufacturing efficiency. With engineers who can help Tesla solve the manufacturing puzzle in high demand, the automaker can begin to set its sights on reaching a more sizable annual production and delivery rate.
However, it starts with the right personnel, and Tesla is surely searching for some highly-capable individuals who can help introduce new techniques and processes to the supply chain.
Tesla has been seeking individuals to help revolutionize its manufacturing processes. It starts with Giga Texas.
Manufacturing is where Tesla begins its process of delivering a car to a customer. After rounding up all of the material and necessary parts and people, a car can be built on production lines. However, there is always room for improvement, and as demand continues to grow in the face of an ever-changing automotive industry, Tesla needs to adapt. Without a doubt, the company recognizes that the key to keeping up with demand is building vehicles faster than ever before.
Musk, for one, is all-too-familiar with the struggles of building cars. When the Model 3’s introduction of “production hell” brought Tesla to a crossroads in 2017, it was evident that things needed to be solved. More lines and more personnel were brought in, but there is a better strategy than just adding more volume. There is a chance to revolutionize the way cars are built, making the entire process easier, more refined, and better for the company as a whole.
Sheer magnitude of the entire production system is hard to appreciate. Almost every element of production is >75% automated. Only wire harnesses & general assembly, which are <10% of production costs, are primarily manual.
— Elon Musk (@elonmusk) October 12, 2020
For Tesla, manufacturing half-a-million units of the same two cars every year is far from monotonous and repetitive. It is an opportunity to learn.
“…They sort of put manufacturing is like, oh, this is for some boring, just making copies, whatever. But actually, there’s far more opportunity for innovation in manufacturing than in the products itself, order magnitude,” Musk said during the company’s second-quarter Earnings Call. “If you work on manufacturing engineering, but you don’t just get force-fed a sandwich. You get to change the product design. So it’s super exciting.”
A focus on manufacturing has put Tesla at the forefront of automotive technology and design. Musk has even said himself that the company’s long-term sustainable advantage would be manufacturing. Eventually, other automakers will create and build a line of sustainable, functional, and operational EVs. However, Tesla will be able to put themselves ahead of the pack simply because the company’s manufacturing efficiency will be “head and shoulders” above everyone else.
Tesla will be absolutely head and shoulders above anyone else in manufacturing. That is our goal.” -Elon Musk
“Eventually, every car company will have long-range electric cars. Eventually, every company will have autonomy. But not every company will be great at manufacturing. Tesla will be absolutely head and shoulders above anyone else in manufacturing. That is our goal,” Musk said.
The problem is that testing these new techniques and ideas becomes difficult when you have two functional production plants and two others that are being constructed. Without a doubt, trying new things in terms of manufacturing could be detrimental to current lines and could interrupt the much-needed production efforts that are going on currently. So the only way to really test it is to build a new facility and try things on lines that have yet to be used.
This is where Tesla’s advantage lies with Giga Texas. It becomes the perfect place to test new techniques as lines have yet to be built, and none of the company’s current infrastructure is dependent on Giga Texas’ output. Not only is it a fresh start, but it is also close to home, and Musk will have the opportunity to oversee new production and manufacturing methods by simply hopping on his private jet and darting off to the Lone Star State.
Elon Musk giving YouTube tech reviewer Marques Brownlee a tour of the Fremont factory. (Credit: MKBHD/YouTube)
Tesla is currently looking for proven manufacturing leaders to take charge of the Giga Texas plant as well. This job won’t be business as usual or the same monotonous challenges day in and day out. Tesla is looking for a change, and it is dead set on coming up with new ways to make cars efficiently. As the company nears a 1 million vehicle a year production rate, Giga Texas may be the way Tesla sets itself apart from all other car companies by showing new and innovative techniques that could drive the company’s manufacturing practices to become more efficient and groundbreaking for the future.
News
Tesla Europe builds momentum with expanding FSD demos and regional launches
Needless to say, it appears that Tesla is putting in some serious effort into boosting sales in Europe this year.
Tesla has been notably active across Europe in recent weeks, expanding its Full Self-Driving (Supervised) ride-along program, entering a new market, and showcasing its newest vehicles across multiple regions.
Needless to say, it appears that Tesla is putting in some serious effort into boosting sales in Europe this year.
Tesla Europe recently announced the expansion of its FSD (Supervised) ride-along experiences, inviting the public to experience the system on local roads. Initially available in Italy, France, and Germany when it launched, the program has now expanded to Hungary, Finland, and Spain.
The ride-along program allows participants to ride in the passenger seat and observe how FSD Supervised handles real-world traffic scenarios, including dense urban driving and other challenging conditions. Tesla has positioned the initiative as a way to familiarize European drivers and regulators with the system’s capabilities in everyday use. The program has received positive reviews so far, with many being impressed by FSD’s real-world capabilities.
Tesla also recently launched operations in Slovakia with a pop-up store and multi-day public event in Bratislava, as noted in an EV Wire report. The launch, held from January 16 to 18 at the Eurovea Mall Promenade, featured test drives, vehicle displays, including the Cybertruck, as well as family-focused attractions such as a mini-Tesla racetrack.
Local observers noted that Tesla Optimus was also shown at the event, while the Tesla Owners Slovakia club welcomed the brand with a coordinated light show near the Slovak National Theater. Tesla Europe later shared its appreciation for Slovakia in a post on its official social media account on X, stating, “Thanks, Slovakia, for the amazing last 3 days & for giving us such a warm welcome!”
Tesla’s Slovakia entry follows a familiar pattern used by the company in other European markets. Tesla opened a pop-up store in Bratislava as an initial step, with plans for a permanent showroom and a potential service center at a renovated site previously occupied by a Jeep and Dodge dealership. Tesla has used a similar approach in markets such as Czechia and Lithuania, where permanent facilities followed within a few months of pop-up launches.
Slovakia already has six Supercharging sites totaling 46 Superchargers, including two locations in Bratislava, providing early infrastructure support for Tesla owners. Tesla staff program manager Supratik Saha described the Slovakia launch as a strategic expansion in the heart of the EU, citing the country’s strong automotive manufacturing base and appetite for advanced technology.
Beyond the EU, the company also marked another milestone with the first Cybertruck deliveries in the United Arab Emirates, signaling continued geographic expansion for Tesla’s newest vehicle. Just like Tesla Slovakia, the Cybertruck also received a warm welcome from the UAE’s EV community.
News
Tesla Sweden maintains Trelleborg port deal despite union blockade
As noted in a report from Dagens Arbete (DA), Tesla was able to maintain its storage agreement with the Port of Trelleborg.
Tesla Sweden is still storing vehicles at the Port of Trelleborg despite the ongoing blockades against the company from the country’s labor unions.
Tesla still at Port of Trelleborg
As noted in a report from Dagens Arbete (DA), Tesla was able to maintain its storage agreement with the Port of Trelleborg. This allows the company to keep vehicles at the port while imports into Sweden continue. This was despite the Transport Workers’ Union’s blockade, which was aimed at halting the loading and unloading of Tesla vehicles in the area.
Local union leader Jörgen Wärja, chairman of Transport and an employee representative on the port company’s board, confirmed that the agreement was still active. “The agreement has not been terminated. You want to have the money instead of having empty warehouses. I understand the reason, but I do not support it,” Wärja said
The local union leader also noted that he visited Tesla’s storage area earlier this week. “There were a lot of cars. I was surprised that there were so many, actually,” he said.
Tesla had been able to bring vehicles into Sweden via passenger ferries at Trelleborg, a method that unions said allowed the company to bypass the blockade, DA noted. According to estimates from IF Metall, the workaround enabled Tesla to deliver thousands of cars to Sweden each year.
Port defends decision
The Port of Trelleborg did not issue a comment on its current agreement with Tesla, but said it had complied with union sympathy measures. Documents reviewed by Swedish media showed that the contract with Tesla was being extended in six-month intervals.
Port CEO Malin Collin noted that the port would not discuss individual customer arrangements. “We do not go into details regarding any customer agreements. We have continuous dialogue with potential tenants, and this is not unique to any location,” Collin wrote in an email.
The CEO added that the port was following legal requirements related to the labor dispute. “We have taken note of the Transport Workers’ Union’s decision on sympathy measures and are of course following applicable legislation and the requirements placed on us as employers,” Collin said.
Jörgen Wärja, for his part, stated that the issue was not whether Tesla’s imports into Sweden could be fully stopped, but whether the port should provide logistical support to the electric vehicle maker during an active conflict. “The port shouldn’t have anything to do with Tesla at all, we believe,” he said. “It’s purely moral. Whether you honor a conflict or not. If you say you support Transport’s sympathetic actions against Tesla, it becomes a double standard.”
Elon Musk
Elon Musk shares insights on SpaceX and Tesla’s potential scale
In a pair of recent posts on X, Musk argued that both companies operate in domains where growth is not linear, but exponential.
Elon Musk outlined why he believes Tesla and SpaceX ultimately dwarf their competitors, pointing to autonomy, robotics, and space-based energy as forces that fundamentally reshape economic scale.
In a pair of recent posts on X, Musk argued that both companies operate in domains where growth is not linear, but exponential.
Space-based energy
In a response to a user on X who observed that SpaceX has a larger valuation than all six US defense companies combined, Musk explained that space-based industries will eventually surpass the total economic value of Earth. He noted that space allows humanity to harness roughly 100,000 times more energy than Earth currently uses, while still consuming less than a millionth of the Sun’s total energy output.
That level of available energy should enable the emergence and development of industries that are simply not possible within Earth’s physical and environmental constraints. Continuous solar exposure in space, as per Musk’s comment, removes limitations imposed by atmosphere, weather, and land availability.
Autonomy and robots
In a follow-up post, Elon Musk explaned that “due to autonomy, Tesla is worth more than the rest of the auto industry.” Musk added that this assessment does not yet account for Optimus, Tesla’s humanoid robot. As per the CEO, once Optimus reaches scaled production, it could increase Earth’s gross domestic product by an order of magnitude, ultimately paving the way for sustainable abundance.
Even before the advent of Optimus, however, Tesla’s autonomous driving system already gives vehicles the option to become revenue-generating assets through services like the Tesla Robotaxi network. Tesla’s autonomous efforts seem to be on the verge of paying off, as services like the Robotaxi network have already been launched in its initial stages in Austin and the Bay Area.
