Blog Panasonic CEO Says Model 3 Bottleneck Identified, Gigafactory Production to Increase

Panasonic CEO Kazuhiro Tsuga confirmed Tuesday that Tesla’s current production bottleneck has been identified and the Gigafactory will increase efforts, according to Reuters.

The report said:

“Panasonic Corp Chief Executive Kazuhiro Tsuga said on Tuesday that output could soon be increased at Tesla Inc’s “gigafactory” battery plant as the causes of production bottlenecks for Tesla’s Model 3 are now understood.”

Tsuga made the comments during the release of Panasonic’s second-quarter results.

The plant is operated jointly by Panasonic and Tesla and manufactures battery cells for Tesla products. Tesla CEO Elon Musk posted a video last week of a group singing around a campfire on the Gigafactory roof. In a follow-up tweet he explained that he chose to camp out on the roof, as it was more time efficient than traveling to nearby Reno for lodging. He again stressed that Tesla is in “production hell,” and thanked employees at the factor for their hard work.

https://twitter.com/x/status/923657991664095232

Tesla said this month that manufacturing woes limited quarterly production of the Model 3 sedan to just 260 of a planned 1,500 vehicle goal. Tesla is scheduled to report earnings on Wednesday, and will likely offer more background on its current production challenges.

 

[thx1139]

That doesnt sound like the Gigafactory was the bottleneck. Sounds like the Gigafactory wasnt producing batteries because the Model 3 production ramp up was slower then expected.

 

[Borrris]

Today:
"Panasonic Corp Chief Executive Kazuhiro Tsuga said on Tuesday that output could soon be increased at Tesla Inc’s “gigafactory” battery plant as the causes of production bottlenecks for Tesla’s Model 3 are now understood"

October 2 (Q3 Vehicle Deliveries and Production statement):
"It is important to emphasize that there are no fundamental issues with the Model 3 production or supply chain. We understand what needs to be fixed and we are confident of addressing the manufacturing bottleneck issues in the near-term."

Maybe it is because I am no native English speaker, but for me this is basically the same content just four weeks later. One can even argue, that the statement of Panasonic's CEO that production bottlenecks are understood now implies, that they were not fully understood four weeks ago...

 

[metier]

Didn't Elon tweet a couple weeks ago they had identified all the bottlenecks

 

[boaterva]

That doesnt sound like the Gigafactory was the bottleneck. Sounds like the Gigafactory wasnt producing batteries because the Model 3 production ramp up was slower then expected.

From what little was said in all that, I agree. But I bet we need to wait until tomorrow to find out. It will be a major topic at the 5:30 ET conference call!

Edit: Looks like Fred clarified it was the GF1 as the bottleneck:

 

[Garlan Garner]

That doesnt sound like the Gigafactory was the bottleneck. Sounds like the Gigafactory wasnt producing batteries because the Model 3 production ramp up was slower then expected.

What? That makes no sense.

 

[Garlan Garner]

Didn't Elon tweet a couple weeks ago they had identified all the bottlenecks

I wonder what they will say two weeks from now. Maybe Strobel is next.

 

[Ulmo]

That doesnt sound like the Gigafactory was the bottleneck. Sounds like the Gigafactory wasnt producing batteries because the Model 3 production ramp up was slower then expected.

Demand for PowerWalls and PowerPacks is still pretty strong.

 

[Garlan Garner]

Demand for PowerWalls and PowerPacks is still pretty strong.

What would that have to do with Model 3 cars that use the 2170 batteries?

 

[12Pack]

WSJ and Forbes had reported the bottleneck to be issues with the design and hence the release timing of the automated production line following conflicts between designers and manufacturing engineers about the specs for the line. This has resulted in early Model 3's being hand-built. It is reported that the automated line is now in place , "resolving" the bottleneck.

However, Musk has denied that this was the case...

I guess this is old news and you all know this?

 

[Matias]

"
Panasonic Chief Executive Kazuhiro Tsuga said at an earnings briefing that delays to the automation of the battery pack production line meant some stages had to be completed manually.


“This process (for battery packs) will be soon automated, and then the number of vehicles to be produced will rise sharply,” Tsuga said. He declined to comment to what extent Model 3 production would be behind its targeted schedule."


Panasonic says Gigafactory battery output to increase for Tesla's Model 3

 

[Garlan Garner]

WSJ and Forbes had reported the bottleneck to be issues with the design and hence the release timing of the automated production line following conflicts between designers and manufacturing engineers about the specs for the line. This has resulted in early Model 3's being hand-built. It is reported that the automated line is now in place , "resolving" the bottleneck.

However, Musk has denied that this was the case...

I guess this is old news and you all know this?

Where did Elon deny it? Link?

OLD? The Panasonic CEO made the statement yesterday? Where are you getting your info?

 

[12Pack]

Behind Tesla’s Production Delays: Parts of Model 3 Were Being Made by Hand
That may be behind a paywall

Elon Musk posts video of the Model 3 body line to prove that production is humming along