Documents Show Tesla Expanding Annual Production To About Half Of 500K Goal

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The Daily Kanban has obtained Tesla’s application [PDF here] to the California Alternative Energy and Advanced Transportation Financing Authority (CAEATFA) for about $100m worth of Sales and Use Tax Exclusion (STE) on its purchase of about $1.2 billion worth of production equipment to be used to produce its affordable Model 3. An analysis of key unredacted portions of this CAEATFA application shows that this massive investment –along with CAEATFA documents related to Tesla’s expansion of Model S and Model X vehicle production— will only increase the electric automaker’s annual production to between 230,000 and 300,000 units per year, well short of the firm’s 500,000 unit per year goal for 2018.

Though Tesla could reach its much-discussed half-million per year production goal through other means, these CAEATFA documents appear to validate Daily Kanban‘s analysis of air quality permits at Tesla’s Fremont plant which indicates a current production limit of about 230,000 units per year.  Tesla has yet to publicize any plans to apply for the new permits or make the new investments required to bring its production rate beyond these limits and towards its planned 2018 rate of 500,000 units per year.

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Never Mind The Part Number, GM’s Ignition Sign-Off Had No Purchase Order

Follow the asterisks...

Follow the asterisks…

The Ray DeGorgio-signed GM Validation Sign-Off for the “stealth redesigned” ignition has been much-mentioned for the fact that it showed GM did sign off on engineering changes without a part number change. But the most interesting part of the document seems to have been little discussed anywhere: the unfilled fields for “GM Validation Engineer” and “Purchase Order No.” Perhaps the asterisk next to them means something important…

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