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Tesla to Use Ground-Breaking Manufacturing Process to Build Next-Gen Cars at Giga Mexico

Although Tesla kept all the juicy information for a later event, the 2023 Investor Day gave us a hint of what to expect from the next-generation vehicles. Most importantly, Tesla confirmed that its next gigafactory in Mexico would be responsible for the car's production using a revolutionary "Unboxed Vehicle" manufacturing process.
Tesla to use a ground-breaking manufacturing process to build next-gen cars at Giga Mexico 6 photos
Photo: Tesla | Edited
Tesla to use a ground-breaking manufacturing process to build next-gen cars at Giga MexicoTesla to use a ground-breaking manufacturing process to build next-gen cars at Giga MexicoTesla to use a ground-breaking manufacturing process to build next-gen cars at Giga MexicoTesla to use a ground-breaking manufacturing process to build next-gen cars at Giga MexicoTesla to use a ground-breaking manufacturing process to build next-gen cars at Giga Mexico
Although it wasn't light in information, Tesla Investor Day has left some people wanting. Its presentation disappointed institutional investors, who expected more financial data and less wishful thinking. It also disappointed retail investors, most wanting more technical details and concrete products instead of ideas and concepts. And finally, a lot of noise overwhelmed the most important information. Considering all that, we think Investor Day has still delivered on its promises, despite not addressing people's expectations head-on.

Among the more interesting discussions, Tesla touched on its next-gen platform and the Mexico gigafactory that will build vehicles based on it. The subject of Giga Mexico was an important part of the presentation, which shows that Mexican officials knew what they were talking about in December 2022. Someone might've spoiled the fun, but the details about the plant in Monterrey and the affordable car it was supposed to produce have finally proved accurate.

Tesla has officially confirmed the Nuevo Leon as the location of its next Gigafactory, and also the fact that it will produce Tesla's high-volume affordable car. Based on previous info, the Mexican gigafactory would be similar in size to others, with a planned production of one million vehicles.

Tesla's next-gen platform will spawn at least two new models, based on the slides shown to investors on March 1. One looks like a small compact car, which is appropriate for the targeted price point. The other resembles a van or SUV, both form factors having their fans. Tesla refused to offer more details about the new models, saying it will present them during a dedicated event in a couple of months.

But that doesn't mean that Tesla Investor Day didn't offer plenty of details regarding the streamlined production process and the vehicles' technical information. We focus here on the new manufacturing process that Tesla wants to implement at Giga Mexico. The EV maker calls the new technique the "Unboxed Vehicle" manufacturing process. Instead of building the cars like the industry always did, Tesla wants to re-invent the whole process.

In traditional manufacturing, cars are made by stamping the body parts, assembling them for painting, removing the doors to install internal components, then re-add the doors. Tesla divides the process into two critical workflows. On one side, the stamped parts, like the body sides and the car floor, are processed in one workflow. The other stream takes care of casting the front, rear, and possibly other parts. Then they are all put together in the final assembly, thus eliminating many steps and even more individual components. Tesla also intends to only paint sides and parts that need it instead of the whole body.

The new manufacturing process will allow Tesla to reduce the gigafactory footprint by around 40% compared to existing gigafactories. It will also reduce production costs by 50% compared to Model 3 and Model Y. Although the Unboxed Vehicle manufacturing process will be initially used for new products, it will eventually reach existing gigafactories and vehicles. Watch it in the video below starting from 1:04:38.

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About the author: Cristian Agatie
Cristian Agatie profile photo

After his childhood dream of becoming a "tractor operator" didn't pan out, Cristian turned to journalism, first in print and later moving to online media. His top interests are electric vehicles and new energy solutions.
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