FORBES MAGAZINE FEATURE: Decoding Tesla’s Secret Formula

By  //  August 23, 2015

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The first thing you notice when you step onto Tesla Motors TSLA -5.22% production floor are the robots. Eight-foot-tall bright-red bots that look like Transformers, huddling over each Model S sedan as it makes its way through the factory in Fremont, Calif., on the eastern, shaggier side of Silicon Valley. (Forbes magazine image)

This story appears in the September 7, 2015 issue of Forbes.

FORBES MAGAZINE – The first thing you notice when you step onto Tesla Motors TSLA -5.22% production floor are the robots.

FORBES-COVER-SEPT-2015-580-1Eight-foot-tall bright-red bots that look like Transformers, huddling over each Model S sedan as it makes its way through the factory in Fremont, Calif., on the eastern, shaggier side of Silicon Valley.

Up to eight robots at a time work on a single Model S in a choreographed routine, each performing up to five tasks: welding, riveting, gripping and moving materials, bending metal, and installing components.

Henry Ford and the generations of auto industry experts who have followed would dismiss this setup as inefficient–each robot should do one task only before moving the car on to the next Transformer.

It’s a $3 billion criticism, to be specific. That was the amount shaved off the company’s market value in early August after Tesla cut its sales forecasts for the year by 10% to 50,000 vehicles, citing delays in teaching the robots to make both the Model S and the new crossover SUV Model X.

“The Model X is a particularly challenging car to build. Maybe the hardest car to build in the world. I’m not sure what would be harder,” admitted Elon Musk, Tesla’s billionaire founder and visionary CEO, who also serves in those same roles at SpaceX.

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