Tesla: It’s time to build your Model S
A123 recalls cells
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One of four automated tab welding machines in the prismatic cell manufacturing process at our Livonia, Michigan facility was incorrectly calibrated, causing a misalignment of a certain component in some prismatic cells. This defect was undetected by our standard visual and electrical inspection. When the defective prismatic cells were subsequently compressed as part of the module assembly process, a mechanical interference was created between the misplaced component and the foil pouch which contains the cell. In certain cases, this interference breaches the foil pouch electrical insulation causing an electrical short which can cause premature failure of the battery module or pack, leading to decrease in performance and reduced battery life. We have isolated the root cause of the defective cells to this single automated welding machine, and have recalibrated it to conform with the other three automated welding machines at the Livonia facility. Cells made using these other three machines are not defective, giving us confidence that we have pinpointed the source of the defect and corrected it.
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Wunderlich Securities analyst Theodore O’Neill took a tour of Tesla’s California headquarters factory and told the AP that production of the Model S is “at or ahead of schedule,” and that Tesla may be able to surpass its goal of making 5,000 vehicles in 2012. O’Neill raised his Tesla shares rating to “buy” from “hold,” and upped his price target to $49 from $30.
Photo courtesy of Tesla
Photo courtesy of A123 Systems
A123 Systems announced that it will replace battery modules built at the company’s Livonia, Michigan factory, because they may contain defective prismatic cells. The company has begun building and shipping replacements to customers, including Fisker Automotive. This recall may cost A123 as much as $55 million, which the company says it will fund over the next several quarters. What happened you ask? A123 released all the details via the Livonia Prismatic Cell Field Campaign Q&A they published.
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There is no reason from a production standpoint why [Tesla] can’t immediately ramp to 5,000 cars per quarter. The electric car is significantly simpler to produce than a regular car. It will only be limited by components in the supply chain.
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O’Neill also noted that he no longer thinks Tesla will need to raise money in 2013. Analysts expect the company to report $561 million in revenue for the year, according to FactSet - a financial research firm. George Blankenship, Tesla’s VP of Design and Store Development, urged Model S reservation holders to start picking their car’s options.
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Over the next few months, Tesla Retail Stores and the Tesla website will be offering additional interactive tools enabling Model S reservation holders to choose colors, interiors and other options in the Design Studio. In Tesla Retail stores, we will also be completely updating the Design Studio and touch screens. These tools are well into the design and testing phase and I’m very happy with the direction they are taking. They are very visual, easy to navigate and fun to use.
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APR/MAY 2012 13