Tesla (NASDAQ:TSLA)’s New Venture


Tesla (NASDAQ:TSLA) Motors, an American company that designs, manufactures and sells electric cars and vehicles. The company first came into light after its massive success of Tesla (NASDAQ:TSLA) Roadster, the first fully electric sports car. Next came the Model S, a fully electric luxury sedan and then Model X and 3 after that. Tesla (NASDAQ:TSLA)’s objective is to be an independent automaker, offering electric car at affordable price for the bourgeoisie. It aims to soon produce an electric car under $40,000 by 2017.

But in more immediate plans, Tesla (NASDAQ:TSLA) Motors guidance pointed to an expected production increase and as a response the company sealed off its Fremont California plant to make necessary renovations before being faced with new challenges. The factory was shut down for two weeks to work on certain advancements to handle the Dual Motor Model S demands. According to the company officials, the extra capacity will help accommodate with the recent global demand as well as the Model X production. The upgrade is said to cater to an additional 50% production capacity by the end of 2015. According to Tesla (NASDAQ:TSLA) prediction, the company that once produced 22,000 cars per year will now beat its record by producing 35,000 this year. As for 2015, the predictions are set at 85000 cars if not more. The range of cars will include Model X electric crossover utility cars but majority are still Model S sedans. These changes even though delayed the Model X deliveries till the third quarter, the company expects to make a comeback with a boom.

The changes made in the factory include assembly line and plant changes to shift focus to automation as well as formation of robots that can lift entire cars at different stages during assembly and install their battery packs. Tesla (NASDAQ:TSLA) has names these robots after X-Men characters as for them they are no less then super heroes. Additional assembly area was made specifically for Dual Motor Model S as well as large automated line for lining up the cars model wise. New conveyors and robots were also made for battery cell processing as well as welding equipment. The Fremont plant capacity at this stage exceeds in terms of Tesla (NASDAQ:TSLA)’s next year production plan.

Before Tesla (NASDAQ:TSLA) took over and renovated the Fremont plant, the factory was owned by General Motors (NYSE:GM) and Toyota (NYSE:TM) for the production of its New United Motor Manufacturing project. Majority of the cars made were small and compact, like the Geo Prizim and Pontiac Vibe.

Even though Tesla (NASDAQ:TSLA) is still a long way away from actually producing cars in those large figures, but when the time comes at least, it will have the facility to manage that. With this, the Tesla (NASDAQ:TSLA) success story continues and with such pre planning, it won’t be long when the company would reach new heights. Competitors will now need to buck up and come at par with Tesla (NASDAQ:TSLA), if they wish to survive in this competitive market.