Tesla Simply Buys Another Company To Fix Model 3 Production Problems

Technology / Comments

Why come up with an in-house solution when somebody else already has one?

In the words of its CEO, Tesla is in "production hell" regarding its new Model 3. Turns out it's not easy producing a mass market car. Fortunately for Tesla, it has the means to do something about it fairly quickly. According to Bloomberg, Tesla has just acquired a company called Perbix. Perbix makes automated machines specifically used for manufacturing purposes. Conveniently Perbix was a Tesla supplier for nearly three years.

Neither company is saying anything about how much was paid or other related details, but this was an intelligent purchase by Elon Musk. He clearly knew Tesla didn't have the ability to fix those production issues in the short-term, and the pressure is on to deliver all of those Model 3s not only from anxious buyers but also shareholders. Ideally, Tesla would like Model 3 production figures to reach 10,000 units per week. In the third quarter of this year, only 260 units were built despite the previously stated 1,500 goal. But why is the Model 3 having production delays in the first place? Hasn't Tesla already learned from Model S and Model X production?

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Yes and no. You see, the Model 3's body is composed of some aluminum and other alloys, unlike the Model S and X which have predominantly aluminum bodies. The Model 3, therefore, requires more welding because of the different alloys used, a process that's still new to Tesla. But Tesla has proven time and again it's fully capable of rising to the challenge and can come up with effective and permanent solutions. The Perbix purchase is simply another example.

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