Tesla Eliminates Prototype Tooling for Model 3 Launch

Tesla Inc. plans to go straight to production tooling rather than testing its new Model 3 production line with prototype equipment when the company ramps up output of the electric sedan later this year, Reuters reports.

CEO Elon Musk told investors about the decision to skip so-called “beta” testing during a financial conference call last month. A summary of the call was posted by a Reddit user.

Eliminating intermediary prototype tooling would help Tesla meet its goal of a September sales rollout for the high-volume, $35,000 Model 3 at its factory in Fremont, Calif. But skeptics have doubted the company will be ready to launch by then, due in part to the ability of suppliers to meet Tesla’s tight deadlines.

Tesla has made strides to improve its production know-how since the problem-plagued launch of its Model X SUV in 2015. Those issues were related in part due to a short deadline that prevented the carmaker from implementing changes from soft tooling to final volume production.

Tesla has since learned how to better modify production tooling and is employing more advanced computer simulations, Reuters says. The carmaker also purchased Grand Rapids, Mich.-based Riviera Tool LLC, which allows it to build major equipment less expensively and 30% faster than before, an unnamed source tells the news agency.

The plan could allow Tesla to fix errors quicker. But analysts caution the procedures also could let quality problems slip into production vehicles, thus triggering consumer complaints and costly recalls.

To help implement the new production strategy, Tesla hired former Audi executive Peter Hochholdinger last year. Hochholdinger helped launch a computer simulation-based pilot testing process at Audi’s new plant in San Jose Chiapa, Mexico.