Tesla wants to get rid of the iconic assembly line: towards a “revolutionary” new production system? | Car

According to Tesla, the change could reduce its manufacturing footprint by more than 40 percent. Future factories could be built faster and cheaper.

If the new production process proves successful, Tesla says it could halve production costs. That would be very important for Tesla’s long-awaited plans to come up with a cheap electric car that could fuel slowing demand.

Tesla CEO Elon Musk calls the new production system “revolutionary” and “far more advanced than any other production system in the world, by a significant margin.”

Still, analysts point out that Tesla’s new system is not yet proven and that it may come with inefficiencies and risks. A recent analysis by Bloomberg found that the new modular manufacturing process could reduce costs by a third, not half.

Tesla delivered 1.8 million cars last year, but wants to reach 30 million cars by 2030. To achieve that objective, the car manufacturer needs significantly cheaper cars in its range.