Tesla Inc (NASDAQ:TSLA) has been struggling to meet its own production goals while its rival Ford Motor Company (NYSE:F) and others in the industry are making it with the little they have. According to the latest news from Bloomberg Intelligence, Ford is meeting its production targets and its customers don’t need to wait for long for the products. It’s estimated that most car plants in North America are producing more than 70 models faster than Tesla.
Ford is particularly manufacturing car models more quickly than any other car maker in the region after being in operation for over 155 years. Tesla is also known to have a high number of workers who are not efficient for the firm. Generally, in the car manufacturing industry, producing a car requires more than just having the staff.
Tesla has experienced lots of challenges especially with the production bottlenecks for its new Model 3 and recently it stopped the production due to the automation problems the company has to fix at its California facility.
Tesla produced about 34,494 cars in its first quarter of the year compared to the previous production of 29,870 vehicles in the fourth quarter of the year 2017. Hence the company is determined to surpass its rivals including Ford and Model T despite the slow pace at which the firm produces its car models.
Nissan Motor Co has at most 8,000 employees and produces about 1,700 vehicles every single day, which translates to about a team of 5 workers per car. Honda, on the other hand, makes about 1,200 cars per day using only 4,200 workers, which means about 3.5 workers per car.
Producing cars is deemed expensive and requires a lot of input yet the output takes time to be realized. Tesla should consider streamlining its internal processes to reduce the m=number of staff that drags the company’s efficiency.