Poor Performance of Tesla Factory Robots

Tesla experienced severe production difficulties with its Model 3 electric vehicle throughout 2017 and 2018, which CEO Elon Musk described as 'production hell.' The company had aimed to produce 5,000 Model 3 vehicles per week but struggled to achieve even half that target, producing only around 2,000 per week. The primary cause was Tesla's excessive reliance on automation and robotics in its Fremont, California factory. Musk admitted that 'excessive automation at Tesla was a mistake' and that 'humans are underrated.' The company had implemented what Musk called a 'crazy, complex network of conveyor belts' and attempted to automate final assembly processes that other automakers typically leave to human workers. Tesla was forced to remove much of this automated equipment and replace it with human workers. The company also had to temporarily halt production multiple times to address bottlenecks and even set up a tent-based assembly line in the factory parking lot. Tesla's stock price fell significantly during this period, and the company faced scrutiny from analysts and credit rating agencies. The production issues delayed customer deliveries by an estimated 6-9 months for many of the over 400,000 customers who had pre-ordered the vehicle.