Tesla Factory

[1990C4S]

I was working in the Tesla factory this week. I am restricted by an NDA, but I have to say it is an impressive place. I had (almost) unrestricted to the entire plant. I think I saw everything that goes on there.

I was most shocked by how much of the car is built there. A lot of parts I expected to see arrive in boxes from China was being assembled manually in the factory.

Same with 'components'. I expected to see a lot of Chinese components, nope. Real SKF bearings.

The section I was in recently had their 'quality bar' raised substantially. Mr. Musk reportedly did not like the way the car drove, so a significant portion of this product is being 'reworked' or scrapped based on his feedback and expectations.

Elon Musk used to drive every single car prior to delivery, I guess he is too busy now, but he still drives a significant number of vehicles each week.

Oh, and if you're over 35, this place makes you feel old.

I am not sure they will survive, but it is an impressive accomplishment so far.

[sammyg2]

SKF has bearing manufacturing plants all over the world, including China.
The quality control is such that it really doesn't matter where an SKF bearing is made, they're all just as good.

This is their factory in the Jinan province:

[GH85Carrera]

I hope SKF does a better quality control job than Bosch. They have some real garbage on the market right now with the Bosch name on it.

[sammyg2]

My shop goes through about $150k a year in SKF bearings, I can recall 1 time in 35 years finding a defective SKF product from the factory.

They hold metallurgy and dimensional tolerances as well as any company in the world.

Just don't ask their one of their "experts" to do a failure analysis for you.
They might send out a total doofus who can't tell false brinnelling from axial over-loading from a hole in the ground.

[GH85Carrera]

That is good to hear. So often a Chinese factory will do anything and everything to reduce the cost and not care if quality goes down. When the locals Chinese will not even buy Chinese baby formula because they know it may will have deadly poison in the ingredients there is a problem.

[berettafan]

Gov't facilities should be nice. they represent the best our tax dollars can buy.

[widebody911]

Originally Posted by GH85Carrera

I hope SKF does a better quality control job than Bosch. They have some real garbage on the market right now with the Bosch name on it.

^ This

[gary1101]

I have been to the Tesla factory several times. The Tesla factory in Fremont, California, was previously home to New United Motor Manufacturing Inc. (NUMMI), a joint venture between Toyota and General Motors from 1984 to 2010 employing about 4,500+ people. The Tesla Factory has returned thousands of jobs and utilized most of the infrastructure already in place.

One of the best parts is they have valet parking when you visit the plant.

[sammyg2]

Originally Posted by gary1101

I have been to the Tesla factory several times. The Tesla factory in Fremont, California, was previously home to New United Motor Manufacturing Inc. (NUMMI), a joint venture between Toyota and General Motors from 1984 to 2010 employing about 4,500+ people. The Tesla Factory has returned thousands of jobs and utilized most of the infrastructure already in place.

One of the best parts is they have valet parking when you visit the plant.

Isn't welfare great?

[sammyg2]

Anyone remember cap and trade? it failed on the federal level but California, being the home to the stupidest politicians, decided to do it anyway.

Companies like natural gas suppliers, electrical generation plants, cement manufacturers have to pay big time to buy credits in order to stay in business.

Who sells them these credits? Companies like tesla, who get a butload of credits they don't need, for FREE!!!!!

They turn around and sell the credits for millions, and they get more each year, nearly doubling the amount in 10 years.

That is nothing more that the ****ing commie government picking favorites.
Hurting legitimate businesses by stealing money from them and giving it to looser companies like solyndra and tesla.

And ANYONE supporting these companies is just as guilty and should feel just as ashamed!

BTW just for those mentally challenged, there is a big difference between a tax write off and a tax credit.

With a tax write off, a person or organization gets to "write off" a certain amount of income so they don't pay taxes on the ammount written off.
Depending on their tax bracket that means they would benefit from between 1/4 and 1/3 of the total write-off.

But with a tax CREDIT, the thieving gubmint just gives that total amount away. Here, buy this over-priced piece of crap and we'll PAY YOU $7500 to do it.

Along with the federal loan, Tesla also relies on support from politicians through a complex series of federal and state subsidies. For each purchase of a new Tesla acquired for personal use, the federal government offers a $7,500 federal tax credit. In addition, various states offer additional income-tax credits, including $6,000 in Colorado and $7,500 in West Virginia.

These subsidies have become so central to Tesla's business model that it advertises them to customers as a way to cover the cost of a down payment. And for states that do not yet offer subsidies for electric cars? Tesla's website provides links to help consumers encourage state and local legislators to subsidize the purchase of such vehicles. The company's site even goes so far as to recommend consulting a tax professional.

Even with the support of federal and state politicians, Tesla would still be reporting losses were it not for its ability to profit off of other auto manufacturers in California. In the first quarter of 2013, Tesla reported its first-ever quarterly profit by using special credits from California's Air Resources Board, which rewards auto manufacturers for the production of "zero-emission" vehicles. So far this year, Tesla was able to turn what would have been a $57 million loss into an $11 million gain by selling $68 million worth of these credits to other auto manufacturers in California.

Thast is $68 million that the government GAVE directly to tesla. $68 million of our tax money. Money taken out of my wallet and given to a POS looser company. And that number will go up every year from now on.

[sammyg2]

Correction: in 2013, Tesla made $129.8 million last year selling zero-emission-vehicle (ZEV) credits. It was able to sell 7 credits per car sold.

$130 mil of taxpayer money directly given to them. Free. In 2015 it's likely closer to $250 million.

"Here, have this. We stole it from the taxpayers, party up!"

[sammyg2]

$35,000 of every tesla model S is paid for by selling ZEV credits given to them by the gubmint. Credits that are sold ot other businesses, and that COST IS PASSED TO THE CONSUMER (YOU).

Add to that the $7500 tax give away, and that means THE TAX PAYER is paying for $42,500 of every tesla model S sold.

OH YEAH, THAT'S A GOOD IDEA AND A REALLY GOOD CAR!
****ing Einsteins.

Tesla Makes Money On Model S: $35K Per Car Selling ZEV Credits?
By John Voelcker 16 5,699 views May 7, 2013 Follow John

Tomorrow at 5 pm Eastern, Tesla will hold what may be its most eagerly awaited conference call to date.

The Silicon Valley startup automaker will discuss its first-quarter financial results--which will give the first clue to its financial viability as an operating automaker.

But Tesla Motors [NSDQ:TSLA] will have raked in revenue not only from selling electric cars, but also by selling those cars' zero-emission vehicle credits to other automakers.

Tesla sold "more than 4,750" Model S electric sport sedans last quarter, the company said on April 1 (no, it wasn't an April Fool's joke), and another 2,650 last year.

Selling credits since 2009

Now, as the Los Angeles Times reports, we learn that one analyst estimates Tesla could take in as much as $35,000 more from each Model S by selling its ZEV credits.

This is hardly new; the company has been doing so at least since 2009, when it sold ZEV credits to Honda and one other unnamed automaker.

Thilo Koslowski, an auto-industry analyst at Gartner Group, told the LA Times that the company might take in as much as $250 million this year from selling the credits.

Tesla communications manager Shanna Hendriks declined to comment on the article, noting tomorrow's earnings call. (SEC regulations discourage companies from commenting close to release of important financial information, including earnings.)

How much per car?

The math's a bit unclear, since if Tesla sells 20,000 Model S cars this year, that would work out to $12,500 per car.

Nonetheless, as the article notes, Tesla's ability to garner additional revenue beyond the sales price of its cars "highlights just how far California regulators have gone to promote the electric car."

More properly, that should be "promote zero-emission vehicles," since hydrogen fuel-cell vehicles also qualify for the same credits.

ZEV rules ---> compliance cars

California's ZEV sales requirement has produced the phenomenon of so-called compliance cars, which will be built and sold by five automakers in just enough volume to keep themselves within the law and avoid fines.

Those cars are the Chevrolet Spark EV, Fiat 500e, Ford Focus Electric, Honda Fit EV, and Toyota RAV4 EV.

[sammyg2]

And yet people get all smug about how proud they are to have bought one of these gubmint scam cars and added to the problem.

I don't care if it's wrong, flock everyone else! As long as i get mine!!!!!!

[Noah930]

Politics aside, Sammy, the Model S is a good car. It can sell on the strength of its own merit. I realize actual car sales aren't so simplistic, but it's a good car, nonetheless.

[Tervuren]

Originally Posted by sammyg2

SKF has bearing manufacturing plants all over the world, including China.
The quality control is such that it really doesn't matter where an SKF bearing is made, they're all just as good.

This is their factory in the Jinan province:

I have to +1 this.

If you spec that 99% of your parts should be good, the Chinese will sort bad from good, and insert 1% of bad into what they send you. You get what you pay for, and what you contract for.

Contract, and pay, for quality, and it happens.

[1990C4S]

Originally Posted by gary1101

One of the best parts is they have valet parking when you visit the plant.

They have valet parking because they don't have enough spots for visitors, but it is very nice to have on a hot day. Until you work past 7PM and you have to go hunting for your keys.

[aschen]

government subsides and/or taxes just about everything. I work in the oilfield industry and im not exactly a hippie greenie, but we happily take our R&D tax rebates as well as huge tax incentives from the local gov to build our plant in a certain area. I happily deducted my mortgage interest when I could as well.

Im not saying heavy intensives for Tesla is right of a good thing. Iknow we have spent money on worse. If the investment somehow leads to 'merica being the leader in electric car mfg and design in the next several decades, its going to look like a great ROI. So far a California company is where the best electric cars in the world come from.

The main issue I have with the tax break is that they are applied to what is a luxury purchase.

[Chocaholic]

Better we should buy Kia's and Hyundai's? I'd say Elon has done what any good business person should do. Seek and exploit every opportunity or advantage to succeed. Do you think Donald Trump would do any different? If it's legal, like, say bankruptcy, than more power to you.

Sammy, your tirade is misplaced. What we donate to Tesla is a drop in the ocean compared to what we give to Pakistan, Afghanistan and several other stans that hate our guts.

[berettafan]

'look, squirrel!'

Tesla is the embodiment of govt cheese. Section 8 corp style.