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Trouble at Tesla? Report Says Flawed Parts Slowing Model 3 Production

Loose-lipped employees say issues require costly reworks

Ed TahaneyWriter

Trouble at Tesla—say it ain't so! CNBC is reporting that Tesla employees—current and former—say the "company is manufacturing a high ratio of flawed parts and vehicles that need rework and repairs."

It is estimated that 40 percent of the parts made or received at its Fremont factory require reworking, according to the news outlet—which Tesla denies.

Last weekend, the company confirmed it had stopped its Model 3 production lines in February to make necessary improvements.

"Our Model 3 production plan includes periods of planned downtime in both Fremont and Gigafactory 1. These periods are used to improve automation and systematically address bottlenecks in order to increase production rates," said Tesla in a statement to Reuters.

At this rate, by the time the 400,000 or so Model 3s reserved with $1,000 deposits get made, it might be time for a refresh.

The company expects to produce 2,500 Model 3s per week by the end of the month and double that—5,000 units per week—by the summer.

In addition to the Model 3 production woes, two senior financial executives at Tesla have jumped ship to work for another company and for personal reasons.

As you can imagine, employee morale is also reportedly low—but on a brighter note CEO Elon Musk plans to build an old school drive-in restaurant next to a Tesla Supercharger station in Santa Monica, California are moving forward—it recently received a building permit.

At least, in the not to distant future, Model 3 buyers will have a place to hang out at while they are waiting for their cars to be delivered.