Tesla's 'Unboxed' Manufacturing Innovation… Production Line Changes After 100 Years

SpaceX also rose in tandem, recording $153.47, up 3.73%.

Today, all three major US indices recorded declines. The Dow Jones fell 1.17%, the S&P 500 fell 0.5%, and the Nasdaq fell 0.32%. This market decline is attributed to a combination of rising oil prices, concerns about interest rate hikes, and escalating tensions in the Middle East. However, Tesla showed unusual behavior, rising by nearly 4% contrary to the general market sentiment.

A vote to decide on full approval is scheduled for October 6.

Tesla has introduced a new manufacturing method called 'Unboxed,' assembling vehicle modules in parallel and integrating the body all at once in the final stage. This method is praised for overcoming the limitations of the traditional 1913 Ford conveyor belt system, simplifying the automation process, halving the production line length, and revolutionizing car manufacturing after 100 years.

This difference in production speed creates a significant difference in annual output: 1.44 million units at 10 seconds per unit, and 2.88 million units at 5 seconds per unit.

Elon Musk had previously mentioned that initial production would be painfully slow, and indeed, only 45 Cybercabs are registered among the 420 autonomous vehicles in Texas. This suggests that the process of establishing a mass production system is still ongoing.

Unlike traditional car manufacturing methods, Tesla's Unboxed approach does not put the entire car on the production line. Instead, it divides the car into 5-6 large sections, manufactures them simultaneously, and then combines them at the end. While traditional methods first build the shell and then insert components, the Unboxed method completely reverses the manufacturing process by first assembling individual parts, such as pre-installing seats or interior materials into structural battery packs, before integration.

Tesla's Unboxed manufacturing method has also brought innovation in terms of economic efficiency. Since each section is painted in advance before assembly, the painting process traditionally required at the final assembly stage is completely eliminated. This results in a 40% reduction in factory space and a 30% reduction in labor costs.

It employs 32,000 workers and has the capacity to produce 1.4 million vehicles annually, manufacturing an average of 6,000 vehicles per day across 17 models in its five plants.

This shows the difference between simple aggregated figures and the actual production speed of individual lines.

The Tesla Cybercab is undergoing design changes that involve removing many components to increase production speed. Notably, the steering wheel and the steering column connected to it have been eliminated, and the same electric signal control system used in the Cybertruck will be applied to the Cybercab. This component simplification is expected to contribute to faster production.

Unlike existing automakers who attempt to reduce labor costs through automation, Tesla is not reassigning personnel but rather eliminating the work processes themselves. This innovation is achieved by fundamentally changing the vehicle's design structure.

While current robot technology is advantageous for standardized tasks, it struggles with handling non-standardized components like wire harnesses, various hoses, and sealants, whose shapes vary each time. Due to the tendency of parts to bend and stretch when picked up, robot utilization is difficult, leading to an automation rate of about 10% in automotive assembly processes. The complex movements of human workers within the narrow car body are a challenging area for robots to imitate.

Elon Musk stated in the Q1 earnings call this year that Optimus robots are not yet meaningfully utilized in Tesla factories. Currently, Optimus robots are in the learning phase, performing simple repetitive tasks such as battery cell sorting, component transportation, and inspection, rather than direct assembly work. Assembly processes like wire connections are still challenging tasks for Optimus.

There is a fundamental structural difference that requires completely redrawing vehicle design blueprints. While modifying factory lines might take a few months, redesigning a vehicle and bringing it to mass production can take several years. This time lag will inevitably translate into a gap in technology and market competitiveness.