AUSTIN, TX—Tesla Inc. claims that it has developed a new assembly process that can reduce EV production costs by 50 percent, while reducing factory space by 40 percent.
The “unboxed” system was outlined during the automaker’s recent Investor Day when executives talked about next-generation vehicles and manufacturing improvements. A new low-cost vehicle that's expected to cost around $25,000 will be assembled at a new factory in Monterrey, Mexico.
According to Lars Moravy, vice president of vehicle engineering at Tesla, “[automotive assembly methods] haven’t changed in the last 100 years,” which he called “really silly.
“To scale the way we want, we have to rethink manufacturing and make another step change in cost,” adds Moravy, who outlined Tesla’s new concept, which involves eliminating linear assembly lines and using more subassemblies. Tesla has already experimented with new ways to produce its Model Y by using large “giga castings” and seats attached to structural batteries that are inserted through the bottom of car bodies.