In Automotive School? Learn How Tesla Plans to Cut Costs in Half
The growing competitiveness in the electric vehicle segment has forced EV manufacturers to think of better ways to produce their vehicles. And to capture the most significant market share, EV manufacturers like Tesla are considering reducing the cost of its next generation of vehicles.
So it was no surprise when, at a recent event, Tesla’s top guns stated plans to cut down the costs of its next-gen vehicles by half. In this article, we look at what we know so far about the audacious plans by the automaker.
Understanding Tesla’s Cost-Cutting Plans for Automotive School Students
The drive to cut down on the production costs for a Tesla car reached a new turn at its recently held Investor’s Day event. There, speaker after speaker took turns to shed light on the company’s lofty plans to cut down the cost of its vehicles by half. The plan was simple: to build a new Gigafactory in China and employ innovative manufacturing practices and techniques. These practices are taught extensively at automotive schools like ATC Surrey, and we’ll look at them shortly.
The company aims to benefit from Mexico’s many advantages, most of which border on its proximity to the North American car market, reduced labour and shipping costs, and its skilled workforce. Then there’s the United States-Mexico-Canada Agreement (USMCA), a free trade agreement enabling more straightforward trade, reduced shipping costs, and other benefits.
At the event, the company’s Chief Financial Officer, Zachary Kirkhorn, outlined its master plan to cover volume growth, product and technology advances, etc. Its volume growth plan has to do with the fact that lower manufacturing costs can be achieved by producing a much larger number of vehicles. The company would be reducing the unit cost of its vehicles by ramping up its production volume. And while this plan appears very simple on the surface, a lot of work will be involved in actualizing it, as you’ll find out below.
Increased Assembly Efficiency
As discussed above, one such plan is to reconfigure its manufacturing processes, paving the way for increased efficiency in usable factory floor space, staffing, and operational costs. And in hybrid and electrical mechanic training, these are some of the hallmarks of manufacturing efficiency.
The company plans to reimagine and redesign its assembly line to feature more people and robots simultaneously working on a vehicle. And this could mean a significant reduction in factory footprint (by over 40%). So Tesla is planning to build smaller and more efficient factories, and its proposed site at Monterey, Mexico, is expected to toe this path.
Another such plan is the company’s mandate to streamline its vehicle part assembly process. The company plans to pack massive single-body castings in one integrated system with its structural battery packs. This is as opposed to the traditional way that involves welding of several separate stamped panels to form a vehicle’s body-in-white. This ‘Unboxed Process,” as the company calls it, will increase factory space efficiency and cut off a few assembly-process levers that would have needed to be pulled. If you plan to be a hybrid and electric vehicle mechanic, this is an excellent development.
Battery Technology Advancements
Tesla’s increasing advancements in battery technology point towards a future of more powerful, durable batteries built with lesser money and lesser problems.
At the investor’s day event, the company’s chief, Elon Musk, also discussed the company’s move to ditch the industry-standard lithium nickel-cobalt-aluminum oxide (NCA) batteries for lithium iron phosphate (LFP) batteries. This LFT technology is a cost-reduction strategy, and its iron-based battery technology is safer and raises much fewer mining-related ethical issues than Cobalt.
Are you considering enrolling in an automotive school?
Contact ATC Surrey to learn more about our programs.
