Tesla crisis: NHK covers Texas headquarters!
・Tesla’s decline and cost reduction measures?
・We covered BYD’s Thai factory, how complete is it?
We will provide you with a summary of articles published on NHK.
NHK covers Texas headquarters:
This is the first time for Japanese media to cover the inside of Tesla’s Texas factory.
Tesla’s “Giga Texas”:
The site area is 10 million square feet, equivalent to 20 Tokyo Domes.
Tesla has six major factories in the United States, China, and Germany.
Reporter Daisuke Ezaki covering the factory
The place I visited for my interview was the production line for pickup trucks.
1. GigaTexas also produces batteries.
2. It is characterized by integrated production, from batteries to vehicle body assembly.
Model Y, Cybertruck produced:
Currently producing the popular SUVs Model Y and Cybertruck.
Tesla is entering the pickup truck field for the first time.
Shipments of Cybertrucks began from this factory at the end of November 2023.
“Cybertruck” production system:
It features a sharp straight line design and is made of stainless steel.
1. However, this new material poses a barrier to mass production.
2. Mass production of the Cybertruck is difficult and the company is suffering.
In the future, the company plans to produce 250,000 Cybertrucks annually.
However, this is a factor that does not improve production efficiency and puts pressure on company profits.
Stock prices plummet due to multiple negative factors:
1. Deterioration of battery parts procurement costs:
Unexpected costs were incurred in parts procurement, and transportation costs rose due to tensions in the Middle East.
2. Model 3 production decreases:
Due to design changes to the Model 3, production volume at the California plant decreased.
3. Fire breaks out at German factory:
The temporary halt in production has led to a sharp decline in profits.
Tesla stock price drops significantly:
From the beginning of the year to April 12, the stock price fell 30%.
Rival BYD is a battery manufacturer:
Its biggest rival is BYD, China’s largest company.
It overtook Tesla in three months (October to December 2023).
BYD’s strength lies in batteries:
1. We can produce our own batteries cheaply and are price competitive.
2. The company produces major parts such as semiconductors and car bodies in-house.
It can be produced faster and at lower costs than conventional EVs.
BYD builds Thailand factory:
I visited Rayong province in central Thailand, which is a two-and-a-half hour drive from Bangkok.
Construction work on a new EV factory is progressing at a rapid pace.
1. Operations will begin in June 2024, producing 150,000 EVs annually.
2. It is a base for exporting to all of Southeast Asia and Australia.
Tesla’s operating profit margin worsens:
Tesla’s driving force is its operating profit margin relative to sales.
1. From January to March 2021, the operating profit margin was sluggish at 5.7%.
2. From January to March 2022, the operating profit margin soared to 19.2%.
3. From April 2023, the profit margin has been in single digits for three consecutive years, and the profit margin has fallen sharply.
Compare profit margin with Toyota:
We compared the operating profit margins for fiscal 2022.
1. Toyota Motor Corporation’s ratio has slumped to 7.3%.
2. Tesla’s share stood out at 16.8%.
However, the company was caught up in price competition in China, and its profit margin plummeted.
Improve productivity with Giga Press:
We commissioned a custom-made “Giga Press” from an Italian manufacturer.
1. Gigapress is a manufacturing method that involves casting and molding parts.
2. This reduces welding time and simplifies the process.
It requires fewer workers, which is the key to improving production efficiency.
“Unboxed Process” cuts costs in half:
By implementing this production method, production costs can be cut in half.
1. Rather than assembling them sequentially on a production line, each module is assembled separately.
2. The method of combining them at the end is called the “Unboxed Process.”
Developing our own charging infrastructure:
The major weakness of EVs is the worry about cruising range and running out of batteries.
In America, the fear of running out of batteries is directly linked to the reason people don’t buy EVs.
Production of low-cost EVs:
There are two keys to the next revival.
The development of low-cost cars and self-driving taxis called robotaxis.
At the financial results briefing in January 2024, the company announced its intention to start producing low-priced EVs in the second half of 2025.
https://www3.nhk.or.jp/news/html/20240415/k10014420611000.html