Tesla's new Lathrop, CA facility

[Auzie]

Tesla lists 3 core competencies in its Annual Report, pg8, under Technology: powertrain, vehicle engineering and innovative manufacturing.

Innovative manufacturing is something that is perhaps more hidden and less discussed about than the other two competencies, and I am really curious to learn more about that aspect of Tesla business. The differentiation of Tesla manufacturing from other car manufacturers is not obvious to me. This new facility may be part of the puzzle, how Tesla plans to get competitive advantage with the innovative manufacturing set ups.

This aspect may be a key to their ability to scale up production, not an easy task.

 

[StapleGun]

I was watching JB's recent talk at the Energy Storage Symposium and this exchange in the Q&A session caught my attention. For context the talk was all about grid storage and JB was just discussing the differences between residential and commercial customers, and also about how Tesla has been leasing a majority of their stationary storage systems to large commercial customers.

Follow-up question: "So have you developed an operating center to store and dispatch the cells themselves at commercial plants, or you're not to that scale yet?"

JB: "We are building that right now."

Could this be the purpose of the Lathrop facility?

 

[DaveT]

I was watching JB's recent talk at the Energy Storage Symposium and this exchange in the Q&A session caught my attention. For context the talk was all about grid storage and JB was just discussing the differences between residential and commercial customers, and also about how Tesla has been leasing a majority of their stationary storage systems to large commercial customers.

Follow-up question: "So have you developed an operating center to store and dispatch the cells themselves at commercial plants, or you're not to that scale yet?"

JB: "We are building that right now."

Could this be the purpose of the Lathrop facility?

Not sure. I was watching some BMW i3 production videos and was thinking maybe Tesla is moving their transmission in-house and expanding their motor, inverter production for Model X and that's what Lathrop is for.

I did find JB's comment about building an energy storage center interesting though. He just came across as so bullish in his talk. Gotta love it.

 

[blakegallagher]

I was watching JB's recent talk at the Energy Storage Symposium and this exchange in the Q&A session caught my attention. For context the talk was all about grid storage and JB was just discussing the differences between residential and commercial customers, and also about how Tesla has been leasing a majority of their stationary storage systems to large commercial customers.

Follow-up question: "So have you developed an operating center to store and dispatch the cells themselves at commercial plants, or you're not to that scale yet?"

JB: "We are building that right now."

Could this be the purpose of the Lathrop facility?

I also heard that and thought he was talking about the Lathrop facility.

 

[jjkroll]

From everything I have read and also heard from machinists in the area, Lathrop facility is the new CNC machining facility for Tesla. It will be a production facility for metal components. I am sure it may change if necessary to meet Tesla's expanding goals.

 

[Robert.Boston]

I was watching JB's recent talk at the Energy Storage Symposium and this exchange in the Q&A session caught my attention. For context the talk was all about grid storage and JB was just discussing the differences between residential and commercial customers, and also about how Tesla has been leasing a majority of their stationary storage systems to large commercial customers.

Follow-up question: "So have you developed an operating center to store and dispatch the cells themselves at commercial plants, or you're not to that scale yet?"

JB: "We are building that right now."

Could this be the purpose of the Lathrop facility?

Or could it be part of the GigaFactory campus? That's the only thing that Tesla is "building" right now.

 

[Dollardragon]

In the job description for the 5 axis CNC Programmers position they clearly stated that they will be making parts for production equipment. Further, in another new job description for Mechanical Engineer whose job it will be to design a new manufacturing process for making batteries and the equipment to make them, they mention CNC as part of the process of making the new manufacturing equipment.

In the ME job post they also made reference to the fact that the equipment will be made in the Bay Area.

 

[Dollardragon]

On Fremont - From the Mouth of Musk

Hey Dave, are you out there? I am talking about the Dave who asked Musk about Lathrop during the Q&A at the shareholders meeting. Did you ask him anything else after the meeting? I know he said that he would meet with you after. Did that happen and did you get any more info?

One thing that was interesting about the exchange was that Musk was clear that Lathrop will not be the only mfg. facility in Northern California other than Fremont. He kept speaking about Stockton, Stockton/Lathrop area.

The following is a transcription of the exchange:

Dave asked, " What's the Lathrop facility about? I couldn't find any information anywhere about that.

Musk, "Oh uh, ya so, uh, we are actually expanding our activities sort of in the Stockton area. Ya know Lathrop's a city near Stockton, so in the greater Stoctkon/Lathrop area we are setting up a lot of manufacturing activity to supply components to the Fremont factory.

So as we expand production at Fremont and plan to get to the sort of 1/2 million level we have to move a bunch of manufacturing that is done at Fremont to other factories, some of which are our own, some of which are our suppliers. We can't be at the half million mark and be as vertically integrated as we are at Fremont.

So we expect to do substantial expansion in Lathrop/Stockton area to supply the Fremont factory."

Given his use of the plural “factories,” we should be seeing more of these situations obviously popping up in the area as thy build out Fremont. If I recall correctly, Tesla will be shutting Fremont down in July to reconfigure the current line and install more manufacturing equipment to double current capacity.

Look for more new job postings.

 

[DaveT]

Hey Dave, are you out there? I am talking about the Dave who asked Musk about Lathrop during the Q&A at the shareholders meeting. Did you ask him anything else after the meeting? I know he said that he would meet with you after. Did that happen and did you get any more info?.

Did I miss something? I don't recall Elon saying he'd meet after the meeting.

Anyhow, I didn't talk to him after.

Btw, thanks for posting a transcript of Elon's answer. It's quite encouraging to hear Tesla is aggressively growing their manufacturing processes.

 

[MikeC]

Damn, DaveT, you stood up Elon! :wink:

 

[Dollardragon]

You didn’t ask for the autograph?

 

[DaveT]

You didn’t ask for the autograph?

I think you're confusing me with another person. Maybe the guy that asked Elon to have lunch.

 

[Dollardragon]

Re: autograph, sorry that was the kid just before you>

 

[ggr]

Re: autograph, sorry that was the kid just before you>

No, the kid asked for a factory tour. It was another someone else who asked for the autograph.

 

[austinEV]

Dave was the guy who said he was a supergenius like Musk.

(kidding)

 

[palmer_md]

I've been driving past this facility all summer long heading to my customers, and I've watched as the construction crews upgraded the place. New power feed, new coat of white paint, and lots of other improvements, many of which are not visible from the outside, but you can see the construction worker cars in the parking lot.

Well, as of this week, it looks like it is loaded with employees. The lot has about 3 times as many vehicles in it and most are cars and not pickup trucks. I'd say that it looks like new employee orientation week from an outsiders point of view. There are still no signs on the outside of the building indicating Tesla Motors, but I imagine once they get production up and running they'll add the signs.

 

[DaveT]

I've been driving past this facility all summer long heading to my customers, and I've watched as the construction crews upgraded the place. New power feed, new coat of white paint, and lots of other improvements, many of which are not visible from the outside, but you can see the construction worker cars in the parking lot.

Well, as of this week, it looks like it is loaded with employees. The lot has about 3 times as many vehicles in it and most are cars and not pickup trucks. I'd say that it looks like new employee orientation week from an outsiders point of view. There are still no signs on the outside of the building indicating Tesla Motors, but I imagine once they get production up and running they'll add the signs.

Thanks for the update!

 

[kalikgod]

I had a feeling this might be for production of motors and/or gearboxes. Any chance this getting online is the lead-in for AWD?

 

[mesalum]

Is there any evidence that you can see of possible Super Charging station in the parking lot? I ask because it was just reported that Tesla pulled the permit from the City of Manteca. I assume so they can install the SC here.

Thanks

 

[markb1]

Is there any evidence that you can see of possible Super Charging station in the parking lot? I ask because it was just reported that Tesla pulled the permit from the City of Manteca. I assume so they can install the SC here.

Thanks

Presumably, a permit from the City of Manteca would mean the supercharger is going within the city limits of Manteca, not Lathrop. The Lathrop facility isn't a great place for a supercharger, anyway, due to lack of amenities.

Edit: Oh, I see... "pulled" meaning they withdrew the permit application. I misunderstood. Still don't think the Lathrop facility is a good location, but perhaps somewhere else in Lathrop would be.