Tesla Wants to Use a New Manufacturing Process to Cut Costs

Tesla recently proposed a concept that might revolutionize the global auto industry at an investor presentation. The unboxed process is the name of the manufacturing concept. Analysts predict that if the procedure is successful in bringing down the price of electric vehicles, it may alter how all automakers construct automobiles. To comprehend Tesla’s concept, one must be aware that the majority of manufacturers currently employ a system that was initially created by the Japanese business, Toyota.

The Toyota Production System is the method used by Toyota. The automaker assembles the car on an assembly line after building the body of the vehicle. As the car drives, workers and robots insert components like the engine and seats into the “box” of the vehicle. The car is painted after the external metal panels are installed. However, Tesla claims that it wishes to alter the auto industry. Tesla believes that by producing huge components individually and assembling them at the last minute, it can cut costs. The exterior metal, doors, and front end of the automobile are painted individually in the “unboxed” method and then assembled together at the conclusion.

In a statement, Tesla said its goal to “build more vehicles at a lower cost.” The ultimate goal is to reduce the price of an electric vehicle from above $40,000 to less than $30,000. When a manufacturing site in Monterrey, Mexico opens, at least late in 2024, the assembly system won’t be put to use. The $5 billion facility is being built by Tesla. Martin French works as a director for the automotive research firm Berylls. He researches the transition of the industry to electric cars. According to French, Tesla’s concept directly challenges Toyota. “I felt like the Toyota Production System handbook has just been thrown up in the air and machine-gunned down,” he stated after watching the Tesla presentation.

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