Days after it was announced that
that the automaker is churning out a significant number of flawed parts leading to reworking and remanufacturing. This was causing significant delays on a car that’s already behind the schedule
initially touted. This same facility builds the
Current and former Tesla employees told CNBC that the automaker’s facility in Fremont, Calif., was producing a high number of defective parts. Tesla denies these reports, though a current company engineer said the output of flawed parts could be as high as 40 percent. This of course makes it hard to hit production goals. In July 2017, Musk said the automaker planned to produce 20,000 Model 3s per month by the end of the year. That number was later downgraded. The current estimate is 5,000 cars per-month by the end of June 2018.
Tesla has been bringing in teams to help deal with the high defect rate and the backlog of flawed parts. Team members come from service centers and remanufacturing lines where they regularly see what parts have problems. Reports say that Tesla has been sending parts from Fremont to its remanufacturing facility in Lathrop, Calif., rather than fixing them on the line. Tesla, too, denies that remanufacturing teams deal with rework.
Reworking and remanufacturing are two different things. Neither are unique to Tesla. Reworking refers to fixing an internal quality issue. Remanufacturing is fixing and restoring a part to be reused when
a vehicle or selling as
. Tesla says employees might be confusing the two processes. While many manufacturers use third-party suppliers for manufacturing, Tesla handles everything, from production to sales, internally.
Tesla has downplayed any potential manufacturing problems and said the production halt on the
in February was planned and intended to fix bottlenecks.