If there is indeed very little activity spotted at the Fremont factory and if CEO Elon Musk had previously warned about factory shutdowns for upgrades during Q3, it is possible that Tesla has temporarily shut down the Fremont factory for the planned upgrades. This aligns with the observations made in the drone footage.
During Tesla’s Q2 earnings report, Elon Musk mentioned that the company expects production to be slightly lower in Q3 due to factory shutdowns for various upgrades. While Tesla aims to achieve 1.8 million vehicle deliveries for the year, these shutdowns are anticipated to result in a decrease in production during the third quarter.
The specific details regarding which factories will undergo upgrades were not provided in Musk’s statement, but it is reasonable to assume that Fremont factory and Gigafactory Shanghai might be among them since they produce the Model 3 and are likely candidates for vehicle updates requiring factory improvements.
It’s worth noting that such shutdowns are part of Tesla’s continuous efforts to enhance manufacturing processes, introduce new technologies, and improve overall efficiency.
The drone footage showing little activity at the Fremont factory and the observation of fewer cars in the parking lots could indeed indicate a partial or full shutdown at the moment. However, without official confirmation from Tesla, it is difficult to determine the exact reason for the reduced activity.
Regarding the upgrades, as you mentioned, Tesla has been deploying giga presses at its factories to enable the production of larger casting parts and streamline vehicle body assembly. The construction of foundations for a new giga press, as seen in the video, suggests that Tesla might be expanding its capacity for manufacturing these parts at the Fremont factory.
It’s important to note that while external observations can provide some insights, official statements from Tesla are necessary to confirm any operational changes or shutdowns taking place at their facilities.
Mercedes-Benz recently expressed concerns about the financial viability of electric trucks, stating they're far from matching diesel truck costs. Karin Rådström, the company's head, called for government interventions, such as subsidies and specialized charging infrastructure, to address these challenges. In contrast, Tesla's Semi trucks have already demonstrated their cost-efficiency and impressive capabilities in the "Run on Less" event. Tesla Semis offer significant savings in fuel and maintenance over their lifespan, potentially reaching up to $528,000 over 16 years. While Mercedes is still focusing on hydrogen-powered trucks, Tesla's all-inclusive approach, from product to infrastructure, positions them as leaders in the electric trucking revolution.
Volkswagen's (VW) journey towards electric vehicle (EV) production faces hurdles as a recent IT glitch halts production, adding to previous challenges of part shortages and transport issues. While Tesla thrives, reducing debt and increasing production, VW's debt surges and its EV production lags behind targets. The delay of VW's Trinity platform and a new factory till 2029 further hampers its progress in the EV race against Tesla, reflecting a contrast in operational efficiency and fulfillment of promises between the two automakers.
Tesla's dominance in the US electric vehicle (EV) market remains unrivaled as it outsells its closest competitors by a staggering margin. With over 325,000 vehicles sold in the first half of this year, Tesla holds nearly two-thirds of all EV sales. As other automakers struggle to catch up, the question lingers: can they break Tesla's hold and establish their own presence in this booming market?