Tesla Gigafactory Investor Thread

[Jack6591]

This may all be obvious, but too much is made about the need for highly skilled people or how Tesla needs to find a location that will entice people to move. I don't think that is an issue at all.

The Gigafactory is projected to eventually employ around 6,500 employees, just as it is projected to cost around $5 billion when fully operational. In both the case of the expenses as well as employee head count, it won'-t be all at once. The expenses will accrue as more structure, more equipment, and more employees are added. And more employees will be hired as the factory expands.

As to the skill level required, there will be several levels of skill/experience/education Tesla will be needing. Not everyone, and probably not the bulk, will need a high skill level. This is a new type of factory and we don't know for sure what sorts of tasks will need to be performed but we can probably assume that the highest skill level is already part of the development team and that they will be determining what experience is necessary for each piece of equipment or task. Once the factory is under construction, the "now hiring" sign will go out and the only qualification to get hired may be to pass an aptitude test. Those selected will be trained by Tesla so that they are familiar with the equipment as it gets installed and set up.

So basically, I don't think there will be a big need for experience in high skill levels because the skill will increase over time and before Model 3 is delivering 500,000 cars a year. The first employees will work with those putting the plant together and once they are independent, they will train newer employees, and then you will have trained personnel to open the subsequent Gigafatories.

I have owned Mercedes that were manufactured Germany, South Africa, and Alabama. I disagree with your premise.

 

[RABaby]

I have owned Mercedes that were manufactured Germany, South Africa, and Alabama. I disagree with your premise.

My premise is that skill level is not going to be required for the bulk of new hires. Secondarily, some of the trained people will be part of subsequent factories.

I do not think we are talking about the building of aircraft which requires a lot of A&P licensed mechanics as well as lots of highly trained machinists. And I also think we are talking about a company run by Elon Musk, which is an entirely different story than companies that look to build complex machinery wherever they can do it the cheapest.

In the case of Boeing built in Seattle vs other US cities and other countries, those who have worked for the company see the decline in quality, as well do those who study all the expenses and customer complaints by comparing Seattle to every other supplier. Boeing suffered a dramatic decline when McDonnell Douglas bought Boeing with Boeing's money and the cancer invaded. When you squeeze employees, you suffer in quality. When you dismiss the value of tribal knowledge, your product will suffer and it will take longer to build or overcome problems. Those who work for Tesla love the company. Elon knows the value of respect and he respects his employees. As long as Elon is in charge, I don't think multiple locations will suffer the decline in quality demonstrated by companies whose only goal is more profit.

Currently Tesla trains all its service people. They may be mechanics, but they don't come trained to work on a Tesla and no regular mechanic can work on it. The first employees learned on the job and are only now getting some of the training. That's how work on new technology develops. I was speaking to a technician the other day and he is going to class to learn what he has already learned by himself over the last year, but some haven't worked on the cars long enough to pick up this knowledge so Tesla is making sure everyone gets up to speed on all aspects of the car.

It isn't a matter of hiring people who are qualified to do the job as much as being part of something that people take pride in building. The pride and the tribal knowledge is passed on to each new employee after they go through an initial training period. This technician couldn't say enough positive about the company.

The Gigafactory is new, presumably with new processes. The experience will be developed by those who assemble the first products. And this is not old school hand work. This is an automated system that is going to require much less interaction with humans. The manual labor tasks are not likely to require the skill level of those who operate and perhaps tweak the automated systems. Until I hear details of the factory and its machinery and processes that suggest all the traditional training is required and hiring skilled employees is necessary for the bulk of the positions, I stand by my premise.

 

[Model 3]

This technician couldn't say enough positive about the company.

Just remember one thing - the most of this employees will not be Tesla employees, but Panasonic or others partners employees.

 

[RABaby]

Just remember one thing - the most of this employees will not be Tesla employees, but Panasonic or others partners employees.

That may be entirely true, but will the skill level of those non-Tesla employees be significant? The debate is regarding the experience/education required of new hires for the majority of positions - Tesla, Panasonic, et al. And I can't imagine that co-located companies, with Elon as the one in charge, would not be an employee friendly environment. I believe that is key to a successful operation for everyone.

 

[Model 3]

And I can't imagine that co-located companies, with Elon as the one in charge, would not be an employee friendly environment.

Let's hope your right

 

[Jack6591]

Jim Sinegal the CEO of Costco was frequently questioned as to why he paid significantly greater salaries than his competition Wallmart (Sam's Club). In addition, he paid on average 85% of employee health benefits. He would respond stating: we are not trying to meet the quarter to quarter expectations of Wall street, rather we are building a company to be here one hundred years from now. He emphasized that paying good wages and providing strong benefits was good business.

Good wages and successful business paradigms are not mutually exclusive. Go into Walmart and look at the employees and customers. Go into Costco and look at the employees and customers. They are both successful businesses.

Tesla has the ability to attract the finest people in the world. A great corporate culture should reward all disciplines for their contributions. I am suggesting that Tesla has a remarkable opportunity, there are many ways achieve cost effectiveness. Tesla should recruit from the finest talent pool available.

 

[AudubonB]

Good, jackl. Just fyi: Walmart's club store is "Sam's Club". Your stated "Price Club" is the name of the entity that merged with Costco some 20 years ago. A bit confusing, all.Regardless, as someone who has to make use of both Sam's Club (400 mile r/t) and Costco (600 mile r/t), I can attest we far prefer driving the extra 200 miles to avoid using Sam's Club.

 

[evme]

Generally speaking, the state that lands the factory usually has a training program worked out with the local universities. So more than likely, Tesla will not have to pay for training most people and it would be covered by the university. Some states even offer funds for training employees.

 

[roblab]

Good wages and successful business paradigms are not mutually exclusive. Go into Walmart and look at the employees and customers. Go into Costco and look at the employees and customers. They are both successful businesses.

Tesla should recruit from the finest talent pool available.

It's not the pool, but what you pull out of it and what you throw back. "A company is known by the people it keeps".

 

[AlMc]

On another note: Western Lithium Mining Company on the move again today......probably due to the speculation that TM will build the GF, particularly if it is built in Reno.

 

[hobbes]

Any architects around?!

Job Opening: Gigafactory Architect | SiliconBeat

 

[Jack6591]

I know that I'm probably way over thinking this, but could this new board member have any thing to do with the Gigafactory.

Tesla names Juniper Networks' CFO Denholm as board director - San Jose Mercury News

 

[chickensevil]

I know that I'm probably way over thinking this, but could this new board member have any thing to do with the Gigafactory.

Tesla names Juniper Networks' CFO Denholm as board director - San Jose Mercury News

Based on the data in the article it wouldn't seem like it. What qualities would she bring that would directly relate to the project? (I am sincere in asking this since I really don't know anything about her)

 

[TSLA Siempre]

agree. would be interested in your line of reasoning here.

 

[Jack6591]

Republican Ted Gaines grovels for the Gigafactory | SiliconBeat

Well, I do hope that California is the choice for the Gigafactory.

 

[Jack6591]

800 Million!!!!!!

Corporate Shakedown? Automaker Tesla Demands $500 Million For its Gigafactory | Alternet

San Antonio offers up 800 Million? First time I've heard that number bandied about. The article differentiates between Elon's stated 10 percent (500 Million) and Sproule's "fiduciary responsibility" clarification.

Obviously Tesla will accept the best offer proffered. In any case, Elon goes down in history as greatest poker player ever.

 

[Lump]

Take a look at these +1 Billion tax credit deals Washington just awarded the largest state tax subsidy in U.S. history - The Washington Post

 

[bollar]

Corporate Shakedown? Automaker Tesla Demands $500 Million For its Gigafactory | Alternet

San Antonio offers up 800 Million? First time I've heard that number bandied about. The article differentiates between Elon's stated 10 percent (500 Million) and Sproule's "fiduciary responsibility" clarification.

Obviously Tesla will accept the best offer proffered. In any case, Elon goes down in history as greatest poker player ever.

Several Texas MSAs have the resources to make extremely lucrative offers, but I'm sure none will be considered, unless the State fixes the dealer problem.

 

[Cattledog]

Corporate Shakedown? Automaker Tesla Demands $500 Million For its Gigafactory | Alternet

San Antonio offers up 800 Million? First time I've heard that number bandied about. The article differentiates between Elon's stated 10 percent (500 Million) and Sproule's "fiduciary responsibility" clarification.

Obviously Tesla will accept the best offer proffered. In any case, Elon goes down in history as greatest poker player ever.

*800M offer has been around for awhile (several months), makes me think San Antonio is not really on their radar, or they think $800M can be larger since it was a first offer.

 

[chickensevil]

I don't know if it is just Elon saying it nicely (so people don't think he is a selfish jerk) or if he really means it... but every time he mentions the Gigafactory and getting the "best deal" from the states, he always includes that it is the best deal for both Tesla AND the state... indicating that is isn't going to do something that would ultimately be bad for the state.

Makes me wonder though about Texas and if they are turning down (not accepting) the 800 million for a good reason.