Tesla's new Lathrop, CA facility

[jhm]

I'm glad I asked. Thanks everyone who has helped answer this. It looks like there is no agreement about how far Tesla will go down the path of making the tools that it needs to make the cars and other products, but there does seem to be indication that Tesla wants to do some of that. Tooling the gigafactories will also be a fulltime job for decades. So we'll need to wait and see what concrete steps Tesla takes. Thanks, everyone.

 

[Uncle Paul]

Maybe we are all off base.

Maybe this facility has something to do with Elon's upcoming April 30th post about a new product...that is not a car.

Maybe Hyperloop products, or an electric plane or...

 

[Fanatic]

From shareholders letter 2014 Q4
Productivity Improvements and Capacity Expansion
Ahead of the Model X launch in Q3, we plan to
expand capacity in several areas. In our
Lathrop manufacturing facility in central
California, we are installing a state of the art,
highly automated casting and machining
operation for various aluminum components
used on both Model S and Model X. We are
also increasing production on our new drive unit
line to meet All-Wheel Drive Dual Motor
demand.

 

[Lessmog]

Fanatic, you killjoy! Dousing hype in official facts like that ... :wink:

 

[Fanatic]

Fanatic, you killjoy! Dousing hype in official facts like that ... :wink:

Also like to speculate but I do love facts!

 

[palmer_md]

From shareholders letter 2014 Q4
Productivity Improvements and Capacity Expansion
Ahead of the Model X launch in Q3, we plan to
expand capacity in several areas. In our
Lathrop manufacturing facility in central
California, we are installing a state of the art,
highly automated casting and machining
operation for various aluminum components
used on both Model S and Model X. We are
also increasing production on our new drive unit
line to meet All-Wheel Drive Dual Motor
demand.

Awesome find Fanatic. I drove past this morning and saw that they are making good progress. Roof seems to be going on at this point.

I also drove past in the evening and saw that they were having some sort of earth day celebration with food trucks and such in the parking lot. Unfortunately I had to be somewhere and could not stop to take a closer look.

 

[Larry Chanin]

In response to a question at today's Earnings Call, if I heard Elon correctly this facility is a casting foundry and machining facility to support activities in Fremont.

Larry

 

[Larry Chanin]

What job postings? They need literally DOZENS and DOZENS of toolmakers, machinists, CNC operators etc... Point me to the 200-300 job listings that would be required to assemble a crew in Lathrop for the task of building Model 3 die sets (because we know it can't be for Model X). That's not even mentioning that those people do not exist in California, so the large majority would have to be recruited and relocated. That takes time and if I look at the calendar we're running out of time to do something of this scale. I'm not sure you understand the scope and size of a department that would be required to make hundreds of dies for the Model 3 and how long that would take to assemble and organize. And that's not even considering how much that particular industry has been decimated over the last couple of decades in North America. Nobody (in any large quantity) has gone to school to be a machinist or toolmaker for the last 20+ years.

Yes, I believe I've also heard that they want to build their own dies. So far, there's been no indication that I've seen that they're prepping for that. This is all I found listed for Lathrop: https://chc.tbe.taleo.net/chc01/ats/careers/searchResults.jsp?org=TESLA&cws=1 If suddenly that list explodes with the technical jobs required to build dies, then we can talk. So far all it suggests is a few more bodies for castings, although one position is for a recruiter. I'd hope they wouldn't leave the recruiting for Lathrop to do what you think they are doing to just one person, that alone would require a good sized team of recruiters.

You make a strong argument. However, this operation is too critical to be an all or nothing process. Tesla has multiple sources of dies, both overseas and in the US according to the job description of the manager of Tools & Die Operations. Admittedly dies are a critical path item. Tesla wouldn't have to entirely dispense with those suppliers, but it would make sense to start to develop in-house capabilities to augment outside sources when the pace of production increases by an order of magnitude. The desire to integrate this process in-house is what Gilbert Passin articulated back in 2011. Having this new facility with CNC machines and operators could conceivably be pursuing a less ambitious, but nevertheless prudent approach that permits Tesla to better control a critical item by incrementally integrating die manufacturing in-house. In other words it could be merely a start.

Larry

Makes sense, Larry Chanin. We'll have to wait and see if the job listings eventually reflect that once the construction is done at Lathrop.

Another piece to the puzzle:

Tesla acquires Michigan-based auto supplier

Tesla spokeswoman Alexis Georgeson said the company this week acquired Cascade Township-based tool and die manufacturer Riviera Tool, LLC and will rename it Tesla Tool and Die Factory. Riviera has about 100 employees and Tesla expects the majority will remain after the sale. She declined to disclose the sale price.

"This acquisition enables Tesla to bring additional capabilities in-house, streamlining production and facilitating the introduction of Model X and increased production at the Tesla Fremont (California) factory," Georgeson said Wednesday. "This is our first presence in Michigan."

Riviera designs, develops and manufactures large-scale, custom metal stamping die systems used in the high-speed production of sheet metal parts and assemblies for the global automotive industry. Its customers have included Detroit's Big Three automakers, BMW, Nissan and Daimler.

Riviera has been a key supplier to Tesla for the Model S. Georgeson said Riviera will complete current projects for other automakers but then wind down those operations to focus on Tesla needs. She said Tesla will continue to use other tool and die manufacturers as suppliers.

Larry

 

[Fanatic]

Is there an update to the construction. Heard the roof was on?

 

[palmer_md]

I stopped by yesterday. The metal roof underlay is fully installed. The insulation and rubber will probably go on after the parapet walls. The walls have not started getting installed yet. Lots of equipment for inside the building getting staged in the staging area. So while it does not look like a lot of progress on the building it looks like they have lots in the staging area ready to install.

 

[Fanatic]

Great, thanks Palmer!

 

[palmer_md]

I drove past the site the day after the shareholders meeting. It was interesting to hear their comments on the site at the meeting. They almost made it sound like the entire expansion was up and running. The picture shown of the site with the building under construction was very current at the time, but he said something like it was up and running. I think he was just referring to the rest of the site in the existing building. Anyhow the walls started going onto the building the day after the meeting, so it probably won't be long until they do have the entire site up and running. Once the building is enclosed, there won't be much to see except the construction site trailers to be able to tell if they are done.

 

[Tyl]

When all this is said and done..... and up and running>>> I think the Ford F-150's most made in America boast will be in serious jeopardy:biggrin: Question about the building. Will the roof be saturated with solar panels similar to the renderings of the Giga Factory roof? Is it possible to see where their large bi-directional battery packs may go? I know the Tesla factory in Fremont has ten BDBP's in the front.

 

[palmer_md]

When all this is said and done..... and up and running>>> I think the Ford F-150's most made in America boast will be in serious jeopardy:biggrin: Question about the building. Will the roof be saturated with solar panels similar to the renderings of the Giga Factory roof? Is it possible to see where their large bi-directional battery packs may go? I know the Tesla factory in Fremont has ten BDBP's in the front.

Thats a good thought. They have a small shed roof attached to the other side of the building, that was recently installed and they are building something under that roof. This is an area where the main power service enters the building. I was not sure what they were doing there, but this is a likely answer. Next time I'm there I'll take a look at that area more closely and see if there are any clues.

 

[palmer_md]

When all this is said and done..... and up and running>>> I think the Ford F-150's most made in America boast will be in serious jeopardy:biggrin: Question about the building. Will the roof be saturated with solar panels similar to the renderings of the Giga Factory roof? Is it possible to see where their large bi-directional battery packs may go? I know the Tesla factory in Fremont has ten BDBP's in the front.

I took a picture from the road, unfortunately the zoom on my phone is not very good. It looks like there is not anything under the shed roof but perhaps some water treatment equipment, but in front of this it looks like the electric utility entrance to the building and there are some large boxes. It does not look like battery packs, but perhaps someone else will disagree. I will however keep an eye on this area for changes to see if they add any more "boxes".

I snapped another photo of the expansion, and you can see the walls have begun to go onto the building and you can see the windows for the office area that is in the second floor of the south end of the building.

 

[hobbes]

Thanks for the update! Fun sitting in Europe and watching all those Tesla buildings go up in California/Nevada.

 

[palmer_md]

They finally added their name to the side of the building. It is a bit hard to see through all the trees in front, but its nice to see it on the building. They still don't have a sign perched on top of the sign post out front, but I'm sure that is coming. It'll be much easier to read from the highway once it is up.

Most of the siding is up on the expansion, and you can see that they are working on the roofing membrane. Not much else to report on the expansion progress.

 

[Fanatic]

They finally added their name to the side of the building. It is a bit hard to see through all the trees in front, but its nice to see it on the building. They still don't have a sign perched on top of the sign post out front, but I'm sure that is coming. It'll be much easier to read from the highway once it is up.

Most of the siding is up on the expansion, and you can see that they are working on the roofing membrane. Not much else to report on the expansion progress.

Thanks once again. Looking forward to hear something of the progress in the q2 earnings call

 

[palmer_md]

I've been tracking the progress on the utility entrance at the Tesla factory There has been a lot of groundwork and you could tell they were preparing for what I believe was going to be a installation of the battery power packs. After the groundwork I noticed a conduit stub ups which led me to believe even more that they were preparing for it. Today driving southbound on I-5 I drove by and saw delivery trucks with what appeared to be maybe a dozen power packs getting offloaded.

 

[hobbes]

I've been tracking the progress on the utility entrance at the Tesla factory There has been a lot of groundwork and you could tell they were preparing for what I believe was going to be a installation of the battery power packs. After the groundwork I noticed a conduit stub ups which led me to believe even more that they were preparing for it. Today driving southbound on I-5 I drove by and saw delivery trucks with what appeared to be maybe a dozen power packs getting offloaded.

Thanks for the update! You´re still talking about Lathrop, right? When I hear "the Tesla factory" it sounds more like Fremont... What do you think they´ll use the power packs for, backup power? Or will they try to rely on solar there?