Defective Tesla Parts Are Stacked Outside of California Machine Shop, Report Says

The EV automaker reportedly has an issue of faulty and damaged components being sent from its suppliers.

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A CNBC report shows hundreds of Tesla-branded packages outside of JL Precision, a machine shop located in San Jose, California. These crates allegedly contain components such as door frames and suspension mounts, as well as pieces of machinery used in vehicle production. According to the JL Precision website, the company provides several industries (including automotive) with many services that include manufacturing, plating, and painting, assembly, and quality assurance inspection.

A big part of Musk's oft-cited "Production Hell" is quality control, both for components and for the finished vehicles. The company recently had to recall 123,000 Model S cars for faulty components. The larger problem may lie with suppliers, as a Tesla engineer estimated that 40 percent of the parts that come into its factory require rework, according to the CNBC report, citing unnamed sources. 

To address the problem, Tesla reportedly hired teams of technicians and engineers just to work on defective components. More recently, Tesla has decided to farm out jobs to local shops like JL Precision, possibly in an effort to make room for steeper Model 3 production. These machine shops are tasked with painting, repairing, redesigning, and otherwise preparing vehicle pieces for final assembly.

Steve Finch, a former General Motors plant manager, told CNBC that manufacturers generally take a year or more to vet a potential supplier before forming a partnership. Current and former Tesla employees alleged that Tesla had to rush its search for suppliers, and that the employees it brought on to investigate these suppliers may not have been versed in the correct quality management standards.

These stacks of parts could be another sign that things aren't all rosy behind Tesla's doors. Elon Musk recently announced plans for the Model Y, and there are still lingering promises for the semi and roadster, but if Musk really wants to see Tesla succeed, he should be addressing the issues that are directly in front of him.

JL Precision is unable to either confirm or deny that the parts it possesses are in for repair, only stating that it is "Working closely with Tesla to be a part of the manufacturing process."