Tesla is now producing more cars at its Fremont factory than when it was the NUMMI factory operated in partnership by GM and Toyota.
And it’s only the beginning. CEO Elon Musk says it could grow production by about 50%.
 more…
The post Tesla now produces more cars at Fremont factory than when operated by GM/Toyota appeared first on Electrek.

Tesla now produces more cars at Fremont factory than when operated by GM/Toyota

Supply chain issues may require Tesla to take a big step in a new direction, but that's arguably what the company excels at. May 11, 2022 at 11:22am ET
By: Steven Loveday
For companies to successfully produce more EVs, we need more batteries. To make more batteries, producers need more raw materials. This all comes as no surprise, and Tesla CEO Elon Musk has already noted that the electric automaker may consider getting into mining. It seems Tesla is ready and willing to enter into new territories if the need arises. However, during Elon Musk 's recent interview with Financial Times, he made it clear that Tesla has no plans to acquire another automaker. There has been talk for years that Tesla could easily acquire just about any other automaker if it wanted to. Just think of it, Tesla would immediately have access to more factories and employees across the globe, which could work to ensure that it can do a better job of keeping up with demand. Due to economies of scale, the US electric automaker could reduce prices. So, why does Musk push back against the idea of Tesla buying a competitor? You only need to look back at the first paragraph of this article to quickly come to an answer. It really wouldn't matter how much more production capacity Tesla could acquire by buying another automaker if there aren't enough batteries to put in the growing number of EVs potentially produced. At the recent Financial Times Future of the Car conference, during which Musk, along with several others participated in talks and interviews, the Tesla CEO said that buying another automaker isn't in the company's plans. He has noted in the past that the company would rather build its own new factories than acquire and retrofit existing spaces. The Tesla Fremont factory was formerly owned by GM and Toyota . It served as the New United Motor Manufacturing, Inc. (NUMMI) from 1984 to 2010. Tesla acquired the NUMMI factory, which was its primary production facility for years, and clearly, the company has learned a lot in the process. Since then, rather than acquiring other factories, Tesla has been building its own new factories from the ground up. Moving forward in the interview, Musk was asked whether Tesla may acquire a mining company. His reply likely came as no surprise to people who follow Tesla and Musk on social media. The CEO said via Electrek:
"It’s not out of the question. We will address whatever limitations are on accelerating the world’s transition to sustainable energy. It’s not that we wish to buy mining companies, but if that’s the only way to accelerate the transition, then we will do that." Read These Related Elon Musk Stories For Background:

Musk: Tesla Won't Acquire A Car Company, But Maybe A Mining Operation

With a production of 8,550 cars a week last year, Fremont beat Toyota’s Georgetown plant in Kentucky (8,427 cars a week). Jan 24, 2022 at 3:13pm ET
By: Dan Mihalascu
Tesla’s original factory in Fremont, California, was the most productive auto plant in North America in 2021, according to a Bloomberg analysis of production data from more than 70 production facilities. The former NUMMI facility bought by Tesla in 2010 produced an average of 8,550 cars a week last year, more than Toyota’s facility in Georgetown, Kentucky (8,427 cars a week), BMW’s Spartanburg plant in South Carolina (8,343) or Ford’s truck plant in Dearborn, Michigan (5,564). With a total production of approximately 444,600 cars in 2021 (Tesla did not release an official figure for Fremont but that's what you get by multiplying 8,550 cars a week by 52 weeks), the California plant got surpassed by Tesla ’s other vehicle manufacturing facility, Giga Shanghai, which tripled its output last year to nearly 486,000.Overall, Tesla expanded its global production by 83% over 2020 levels to 930,422 vehicles. Gallery: Tesla Fremont Factory
13 Photos
While 2021 was a remarkable year for Tesla despite the supply-chain shortages that stifled auto production around the world, 2022 looks set to become another record-breaking year seeing as the EV maker is expected to open two new plants in the first quarter—in Austin, Texas, and Berlin, Germany. Furthermore, Elon Musk said in October that he plans to further increase production in Fremont and Shanghai by 50%—not to mention his longstanding target to increase vehicle deliveries by roughly 50% every year. Despite its phenomenal growth and dominance in electric vehicles, Tesla is still just the 10th biggest auto manufacturer in North America, trailing giants like General Motors, Ford, Toyota, Stellantis, and Honda. However, with the EV segment set to grow exponentially in the coming years, we may see Tesla climb further. Originally built by General Motors in the 1960s and jointly operated by GM and Toyota’s NUMMI joint venture until after the former company’s 2009 bankruptcy, the Fremont facility has been a work in progress ever since Model S production started in 2012 , seeing new additions on a regular basis to increase production. There are limits to its continuous expansion, though, and that's where the much bigger Giga Texas plant comes in. More Tesla Fremont factory updates
⠀

Tesla's Fremont Is The Most Productive Car Plant In North America

FREMONT, CA - JULY 23: The Toyota logo is displayed outside of the New United Motor Manufacturing ... [+] Inc. plant July 23, 2009 in Fremont, California. Toyota Motor Corp. announced that it is considering a plan to dissolve its stake in the Nummi plant after General Motors pulled out of the joint venture last month. Nearly 5,000 workers are employed at the auto manufacturing plant. (Photo by Justin Sullivan/Getty Images)
Getty Images
[Updated 12/21/2021] Toyota Motor Update
Toyota Motor’s stock (NYSE: TM) rose by 3% since Q2 FY 2022 earnings. The company has managed the global chip shortage better than its peers as evidenced by the fact that global sales volume was nearly flat compared to the previous year when most other automobile companies saw a fall in volume. Recently, the company s announced they will be investing $13.6 billion in battery technology over the next decade, including a $9 billion investment in production indicating a shift toward adding higher volume of electric vehicles in its line-up. In recently announced Q2 FY 2022, the company reported revenue as ¥7.5 trillion ($68.5 billion), up by 11% y-o-y. The earnings were recorded at ¥45.01 compared to ¥33.66 in the same period of the previous year. The company also did a five-for-one stock split as of September 30, 2021 though there was no impact on ADR pricing as the ratio was adjusted to 1 ADR to 10 ordinary shares (previously 1 ADR to 2 ordinary shares)
Revenue
Trefis
We expect Toyota Motor’s revenues to rise by 9% to ¥29.7 trillion ($274.6 billion). Further, its net income is likely to rise to ¥3 trillion ($27.4 billion), increasing the EPS figure to ¥211.12 ($19.55) for FY 2022. For FY 2023, we expect revenue to reach ¥31 trillion ($287.1 billion) and net income to increase to ¥3.1 trillion ($29.1 billion). This will take the EPS figure to ¥224.25 ($20.76) for FY 2023, which coupled with the P/E multiple of 95.1x and a yen to dollar exchange rate of $0.00926 will lead to Toyota Motor’s valuation around $197, implying an upside of more than 5%. Below you’ll find our previous coverage of Toyota Motor stock where you can track our view over time. [Updated 09/14/2021] Toyota Motor’s Stock To Slow Down? Toyota Motor’s stock (NYSE: TM) has been around the current range since June 2021 sans a small dip in mid-August. The company has managed the global chip shortage better than its peers. This was evidenced by the fact that Toyota Motor outsold General Motors
in the U.S. for the first time ever by reporting sales volume of 688,813 against GM’s 688,236 in the April - June quarter. In the previous week, the company announced they will be investing $13.6 billion in battery technology over the next decade, including a $9 billion investment in production. This indicates the company is getting serious about adding electric cars to its line-up. MORE FOR YOU
We don’t expect much change in revenue or earnings in the next couple of years due to the investment in battery tech. We expect Toyota Motor’s revenues to rise by 7.1% to ¥29.1 trillion ($269.9 billion). Further, its net income is likely to rise to ¥2.9 trillion ($27 billion), increasing the EPS figure to ¥1043.37 ($19.32) for FY 2022. For FY 2023, we expect revenue to reach ¥29.9 trillion ($277.3 billion) and net income to increase to ¥3.1 trillion ($28.4 billion). This will take the EPS figure to ¥1095.85 ($20.29) for FY 2023, which coupled with the P/E multiple of 18.3x and a yen to dollar exchange rate of $0.00926 will lead to Toyota Motor’s valuation around $186, implying an upside of more than 5%. [Updated 06/23/2021] Toyota’s Stock To Continue Rally On Future Growth? Toyota Motor’s stock (NYSE: TM) has gained 56% since the end of FY 2019 (ended March 2019) and 14.6% since the end of FY 2021 (ended March 2021) to $63 currently. The stock has risen continuously since the FY 2021 (ended March 2021) results in May 2021. For FY 2021 the company recorded a revenue fall of 11% y-o-y to ¥272 trillion ($256.5 billion) while earnings improved primarily due to higher interest and dividend income to ¥802.23 ($7.56) per share. The stock has witnessed growth as recovery continued in Q4 of FY 2021 where the revenue increased by 8.3% y-o-y to ¥768.9 trillion ($71 billion). Sales volume also recovered and grew by 5% y-o-y for Q4 FY 2021. We expect the momentum to continue in FY 2022 (FY ends in March 2022) and Toyota Motor’s revenues to rise by 7.1% to ¥29.1 trillion ($269.9 billion). Further, its net income is likely to rise to ¥2.9 trillion ($27 billion), increasing the EPS figure to ¥1043.37 for FY 2022, which coupled with the P/E multiple of 18.8x and a yen to dollar exchange rate of $0.00926 will lead to Toyota Motor’s valuation around $190, implying an upside of more than 10%. [Updated 11/19/2020] Toyota Motor’s Update
Having gained more than 28% since the March 23rd lows, Toyota Motor’s stock (NYSE: TM) has only 5% upside left. TM’s stock has rallied from $111 to $142 off the recent bottom compared to the S&P 500 which moved 60%. The company has seen a steady revenue rise over recent years, and its P/E multiple has risen. We believe the stock, after the recent rally, is close to its near term potential. Due to the Covid-19 crisis, Toyota Motor Corp, one of the world’s largest automobile companies, has seen its revenues fall by 26% for the first six months of the year compared to the same period in the previous year. In Q2 2021 (ended Sept 2020), Toyota reported earnings of ¥225.21 while total revenues were recorded at ¥6774 billion, down 11% y-o-y. Further, the company reported ¥1290 billion in cash inflows from operating activities for the first six months. We expect Toyota Motor’s revenues to remain flat at around ¥29,930 billion for FY 2021 (FY ends in March). Further, its net income is likely to fall by 5% y-o-y, decreasing the EPS figure to ¥723.27 for FY 2021. Thereafter, revenues are expected to touch ¥30,542 billion in 2021, mainly driven by recovery across segments after the pandemic subsides. In addition, the EPS figure is likely to improve to ¥743.24, which coupled with the P/E multiple of 21.8x and a yen to dollar exchange rate of $0.01 will lead to Toyota Motor’s valuation around $150. [Updated 06/26/2020] Looks Like Toyota Stock Has Reached The End Of The Road After It’s Recent Rally
Toyota Motor’s stock (NYSE: TM) has bounced back more than 15% since falling to $111 on March 23 to reach its current level of around $126. Notably, this compares to the 36% growth in the S&P 500 over the same period. We believe Toyota now has limited upside potential. The key is the company’s stock is 12% higher compared to the end of FY 2019 (FY ends in March). Some of this rise of the last two years is helped by the roughly 5% increase seen in Toyota Motor’s revenues from FY 2018 to FY 2020 but offset by the Net Income margin, which fell from 8.5% in 2018 to 6.9% in 2020. The earnings growth, on a per-share basis, was lower -9.8%, slightly offset by share buybacks. Specifically, the company has invested about $12 billion in repurchases from 2018 to 2020, resulting in about 5% lower outstanding shares. While Toyota Motor did have about $39 billion in cash as of the last report, we believe it will likely be challenging for the company to sustain this level of buybacks till the coronavirus pandemic situation gets clear. Finally, Toyota’s P/E ratio grew from about 8x at the end of FY 2018 to 9x at the end of FY 2020 and has remained at that level over recent months. Under the current situation, there is a limited upside for Toyota’s multiple when compared to levels seen over recent years. Effect of Coronavirus
The global spread of coronavirus has led to lockdown in various cities across the globe, which has affected industrial and economic activity. This is likely to affect consumption and consumer spending adversely. More than 35% of Toyota’s total revenue comes from the US region, which is worst impacted by the outbreak. Lower consumer spending and consumption would lead to lower demand for automobiles. These factors are bound to hurt Toyota’s revenues. We believe Toyota’s Q1 2021 results will confirm the trend in revenues as the Americas and Europe will show negative growth. It is also likely to accompany a clearer Q2 as well as FY’21 guidance. The actual recovery and its timing hinge on the broader containment of the coronavirus spread. Our dashboard Trends In U.S. Covid-19 Cases provides an overview of how the pandemic has been spreading in the U.S. and contrasts with trends in Brazil and Russia. With investors focusing their attention on 2021 results, the valuations become important in finding value. What if you’re looking for a more balanced portfolio instead? Here’s a high-quality portfolio that’s beaten the market consistently since the end of 2016. Return

What Next For Toyota Motor Corp?

The workers’ push to join the Retail, Wholesale, and Department Store Union (RWDSU) was always going to be an uphill battle. Amazon used its ever-growing wealth to fight the union’s campaign . Bosses used social distancing protocols meant to stop covid-19 transmission as a pretext to stymie communication between workers. Employer-favoring federal and state labor laws allowed management to run a scorched-earth anti-union effort: Amazon hired anti-union consultants, flooded employees with text messages and signs urging them to “vote no,” and held “captive audience” meetings where workers were required to sit through anti-union lectures. The results were painful for supporters: 738 votes for the union, 1,798 against. But even as the votes were being counted, workers around the country were agitating. On April 7, self-organized workers under the mantle of Amazonians United Chicagoland struck against the company’s “megacycle,” a grueling 10-hour overnight warehouse shift. Workers organized in California’s Inland Empire. Nationwide, hundreds of employees from at least 50 Amazon facilities refused to work during the pandemic. A group on Staten Island was moving to start its own grassroots union. In the Twin Cities, the Awood Center , a workers’ advocacy group for East African immigrants, convinced the company to sit down with workers and come to an agreement about accommodations for religious observances. The Bessemer fight, and Amazon organizing as a whole, reflect a new groundswell of interest in organizing among tech workers. But that current has also raised a question: What is a “tech” worker, anyway? The term could reasonably be applied to anyone from programmers to data center staff to warehouse pickers to assembly-line autoworkers in a Tesla factory. For both sides in this struggle, the bottom line is not money but power. The reality is that organizing in “tech” is sort of like organizing in “industry” in the 1930s. Back then, the Congress of Industrial Organizations shifted the focus of the labor movement from organizing the skilled trades to bringing together the “unskilled” workers in massive new factories. The new labor movement was epitomized by Detroit’s auto plants but emerged across a wide variety of industries characterized by new technology and scientific management tactics. This era of industry required a new kind of union, and labor struggled for decades before hitting upon methods that worked—and, importantly, getting the backing of the Depression-era federal government. Organizing tech workers will require a similar effort, a similar reorganization of labor tactics, and, quite possibly, a similarly supportive federal government. As the result in Bessemer shows, today’s workers are up against the world’s richest companies—companies with the world’s most sophisticated surveillance and information systems, not to mention millions to spend on anti-union consultants. For both sides in this struggle, though, the bottom line is not money but power. Shared power
To understand tech’s new labor movement, says Emma Kinema, an organizer with the Communications Workers of America’s tech-sector organizing project CODE-CWA , one must understand that tech is everywhere, that most workers are in some sense working with technology, and that nevertheless there is a consistency to the thing we call the “tech industry,” even if it is massive and diverse. It’s also important to remember that the culture of Silicon Valley was anti-union from the start; one reason California became the tech hub of choice was that the Boston area, where many early leaders in the industry got their start, had a long-established union presence. Logic Magazine’s Ben Tarnoff notes that the common perks and amenities of the tech workplace—free food, toys and games, and casual dress—began as explicitly anti-union measures. This culture, which sociologist Andrew Ross has called “no-collar,” was designed to engender not just loyalty but a love for and identification with the company. Labor historian Nelson Lichtenstein says Big Tech has a tendency to lean on its transformational image to paper over any labor complaints and minimize them as quibbles that are impeding the evolution of the world. That’s nothing new, he argues—Henry Ford responded in much the same way when workers in his factories spoke up, and Ford learned the tactic from the railroad magnates who preceded him. Related Story
The rise of the tech worker
Even in the early 1990s, when Lerner went to war with Apple as an organizer of the Justice for Janitors campaign and won union rights for subcontracted cleaning workers across the tech sector, the question of “Who is a tech worker?” loomed large. Through those successful campaigns, Lerner helped extend the definition of a tech worker to virtually anyone who makes a tech company run. Cori Crider, an attorney with Foxglove , a firm that aims to challenge the power of Big Tech, has been working with subcontracted content moderators—real humans who sift through posts with violence and racism and graphic sex every day, trying to determine what violates a constantly shifting set of rules. Those workers are often bound by nondisclosure agreements that keep them from speaking publicly about their working conditions. That allows companies like Facebook to deny they exist—an assertion the company stuck with last year even after reports emerged that moderators working for the outsourcing firm Accenture were being pushed back into the office during the pandemic. Tech workers outside the normal definition of “employees” are still finding ways to organize and protect themselves. Coworker.org , a campaign platform for labor organizing, is using donations from well-off tech workers to build a “solidarity fund” distributed to workers on the other side of the tech supply chain. Gig workers on Amazon’s Mechanical Turk platform are using the site Turkopticon to come together and fight for better terms. A wave of rebellions within the unions and wildcat strikes challenged the idea that automation was making their jobs easier. At the other end of the tech-worker spectrum are those building electric cars at Tesla’s plant in Fremont, California. Before Elon Musk’s company bought the Fremont facility, it was known as New United Motors Manufacturing, Inc. , or NUMMI, a collaboration between General Motors and Toyota where Japanese “lean production” was brought to America. NUMMI didn’t survive GM’s bankruptcy in 2008, and Tesla snatched it up. Cooperating with the United Auto Workers was one of NUMMI’s big innovations, but Tesla’s gone another way. Recently, an administrative judge at the NLRB ruled that several of the company’s actions in response to worker organizing were illegal—including a couple of Musk’s tweets as well as harassment of workers passing out union pamphlets, banning of pro-union T-shirts and buttons, and the interrogation of organizers and firing of one. The NLRB’s penalties amount to little more than a finger-wag—Musk must read a statement telling workers that they have the right to unionize, and rehire the fired worker. He’s appealed the decision anyway. The workers at the plant, even the union supporters, are enthusiastic about producing electric vehicles, but they note that the technical sophistication of the plant does not prevent a lot of backbreaking manual labor—or injuries. Jose Moran, one of the leaders of the union drive and a former NUMMI worker, wrote a blog post about the things he wanted to improve, including the grueling pace of the work and some badly designed machinery. Autoworkers have struggled with machinery since the days of Henry Ford. But Tesla workers’ stories echo the complaints of autoworkers in the 1960s who battled “speed-up”—the way management would use new technology to ratchet up the pace of work—in places like Lordstown, Ohio, and Detroit. A wave of rebellions within the unions and wildcat strikes challenged the idea that automation was making their jobs easier. As machines sped up the manufacturing process, workers had to hustle faster to keep up. The autoworkers at Tesla, far from representing a labor aristocracy among autoworkers, say they make less than unionized workers at GM and Ford. As Moran wrote, “I often feel like I am working for a company of the future under working conditions of the past.” 
The long game
In the Amazon warehouses, too, everything old is new again. “The auto industry tried to do lots of automation back in the ’80s, ’70s, whatever, and they basically plateaued out where they couldn’t do it anymore. And Tesla basically tried to do the same thing,” says Tyler Hamilton, an Amazon warehouse worker from Minneapolis. “It’s the same thing with Amazon. There’s only so much you can do with automation.” 
Mohamed Mire, a coworker of Hamilton’s, explains that most of Amazon’s vaunted technology goes to tracking the workers rather than making the work efficient. Scanners that the workers use to scan packages also keep track of their so-called “time off task,” and they get written up if their productivity rate falls. Robots that Hamilton likens to “giant Roombas” carry merchandise around the warehouse but malfunction often—lately his job has included setting the robots right when they stop working. Data from Amazon shows that injury rates are higher at facilities with robots than without them. Related Story

Tech’s new labor movement is harnessing lessons learned a century ago

Acquired

Nummi specializes in customer lending, payment and collection activity services and is based in Uruguay. On June 2, 2021, Nummi was acquired by Prosegur Cash. The terms of the transaction were not disclosed.

Wells Fargo Success Story

Professional Services

Platform Overview

Nummi

Compete with Nummi?

Compete with Nummi?

Discover the right solution for your team