Tesla's Model Y SUV is the top priority at the electric-car maker's Fremont, California, factory, CEO Elon Musk said in an email to employees on June 6. Business Insider viewed a photo of the message.
"It is extremely important for us to ramp up Model Y production and minimize rectification needs," Musk said.
"Model Y, especially GA, is the top priority for both production and manufacturing engineering," he added, referring to general assembly of the car.
Tesla is experiencing manufacturing and supply-chain difficulties related to the Model Y, Musk said. He did not describe the issues in detail but characterized them as normal for the launch of a new vehicle. Two Fremont factory employees who focus on Model 3 production told Business Insider that Tesla has at times taken workers from their teams and reassigned them to help with the Model Y.
"We are doing reasonably well with S, X, and 3, but there are production and supply chain ramp challenges with Model Y, as is always the case for new products," Musk said, referring to Tesla's other models.
Musk also referenced "tough conditions" on the GA4 assembly line — which is in a tentlike structure that was first used to increase the production capacity for Tesla's Model 3 sedan — and said they would soon improve, though he did not specify which issues the line is experiencing. Last year, California's Division of Occupational Safety and Health cited Tesla for six violations of the state's labor regulations in the structure that houses the GA4 line. Tesla is no longer using GA4 for Model 3 production, according to a separate internal email sent by a production supervisor in May.
Tesla did not immediately respond to a request for comment.
After the Model 3's troubled rollout, Tesla began making the Model Y in January, almost a year ahead of its original schedule, and with fewer quality issues than early Model 3s had, according to the manufacturing expert Sandy Munro. The Model Y also earned Tesla a positive gross margin (which includes only costs related to production and excludes items like sales and administrative expenses) during its first quarter in production, a feat Tesla had not achieved with its four prior vehicles. Musk has said he expects the Model Y to become the best-selling vehicle in Tesla's history.
Tesla's Fremont factory stopped production for about two months between March and May because of a local shelter-in-place order motivated by the spread of the novel coronavirus before reopening last month.
You can read Musk's full email below:
Subject: Model Y Production
It is extremely important for us to ramp up Model Y production and minimize rectification needs. I want you to know that it really makes a difference to Tesla right now.
Model Y, especially GA, is the top priority for both production and manufacturing engineering. GA4 is also top priority for facilities improvements. For those working in GA4, thank you for bearing with tough conditions. Will get better fast. I will be walking the line personally every week.
We are doing reasonably well with S, X, and 3, but there are production and supply chain ramp challenges with Model Y, as is always the case for new products.
Please let me know if there's anything I can do to help.
Thanks,
Elon
Are you a current or former Tesla employee? Do you have an opinion about what it's like to work there? Contact this reporter at mmatousek@bjinnox.com. You can also reach out on Signal at 646-768-4712 or email this reporter's encrypted address at mmatousek@protonmail.com.
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