After having listened to Elon Musk, JB Straubel and Deepak Ahuja on the Conference Call yesterday, I have to assume/conclude the following:
There is only one Assembly line, and this Assembly Line has now been upgraded (more efficient, more automation, resulting in a higher production capacity per week). Production will start again on August 4th, 2014. The Body Line will be upgraded in Q1 2015.
In reply to Ben Kallo with Robert W. Baird: "Regarding the production (capacity) increase to a level of 100,000 unit a year, by the end of next year. Some other step to get you to that level?"
Elon Musk: "Well, there is a big step that´s expected to occur in Q1 next year (2015). Which is the bring up of the S/X Body Line. So, what we did in the past two weeks is the Assembly Line, where it´s basically that the bits get put together. But then the Body Line is where the body itself is welded and bonded together, where in fact the core skeleton of the car is created ..... We are gonna bring the Body Line up in parrallel with the current Line. Unlike this case with the Assembly (Line), we didn´t have two complete Assembly Lines, we had to stop and retool. In the case of the new S/X Body Line, which is a line that has been designed to be capable of 2,500 units a week, maybe more than that. Conservatively 2,500 units a week. At a lower cost point. We should be able to do that in parrallel (Model S + Model X). Another really big upgrade is the Paint Shop. There are a few cases where advanced CapEx spending makes sense even though it's gonna pay of in two to three years. But it's such a big improvement that you kinda wanna do it, even at a high discount rate. Our Paint Shop is being upgraded and it's gonna be the most advanced Automotive Paint Shop in the world. It's expensive to do that."
My question now is: "Can we assume/conclude that the Tesla Fremont Factory will have a production capacity of at least 2,500 cars a week (Model S + Model X), by the end of Q1 2015?
Please post your comments/arguments both if you agree or disagree with this assumption/conclusion.
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