Chowdhry Asks: Will Tesla Model 3 Production Be Delayed To 2018?

The primary concern seems to be whether Tesla Motors Inc TSLA would be able to commence Model 3 product in late 2017, as scheduled. Global Equities Research’s Trip Chowdhry said a delay is “highly unlikely.”

Chassis Design Completed In 2015

The physics of Model 3 was completed in 2015. Chris Porritt, who comes from Aston Martin, has been working on the chassis design for Model X and Model 3 since 2014. “It is widely believed Model 3 chassis design got a "Freeze" around August ¬ October of 2015,” Chowdhry mentioned.

Key Advantages Using Steel

“Every indication points to Model 3 will be built using Steel and not Aluminum,” the analyst wrote. Aluminum vehicle construction requires very specialized machinery and worker skills, while also increasing the number of production steps.

Chowdhry mentioned the advantages of Steel over Aluminum as:

• Steel production equipment costs a third of Aluminum
• Worker training required on a vehicle’s framework, chassis and body when using Steel is 50 percent that of Aluminum. Moreover, many more workers can operate the Steel assembly line, while workers’ compensation on the Steel assembly line is half that of Aluminum
• Referring to repair costs, Chowdhry stated, “In case of a dent, in an Aluminum body, the whole panel needs to be replaced, while in Steel, it can be dented out. The repair costs of a Steel body is an order of magnitude cheaper than Aluminum.”