Thread: Tesla Model 3
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Old 07-18-2018, 08:34 PM   #464 (permalink)
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Originally Posted by JSH View Post
Musk says a lot of things, most of which is widely optimistic. For example he says they are going to launch a semi, Model Y, and a new roadster in the next 2 years even though Tesla hasn't managed to launch a single product on time let alone 3 at the same time.

They do have a tent assembly line that they could shut down. They could stop working people 12 hours a day / 6 days a week. The overtime alone has to be killing them.
The cost of overtime is generally not as big a deal as the cost of idle production capacity. Overtime represents a good value to business as they get more labor, but don't have to train/insure extra people. As long as Tesla doesn't burn out their production laborers, it's in their interest to keep working them.

An idle tent production line is just as costly as one housed in a permanent structure, as the expensive machinery isn't paying for itself just sitting there.

I came from a silicon wafer manufacturing fab, where inspection tools might cost $3M each, and there would be rows and rows of these machines. Idling these machines for even a few minutes represents huge losses in revenue.
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