Tesla, the American electric car manufacturer, is revolutionizing the way cars are made with a new production process that eliminates the traditional assembly line method. Instead of building different parts of a car in specific spaces and then combining them, Tesla is looking to build different parts simultaneously. This new approach could reduce Tesla’s manufacturing footprint by more than 40 percent and lead to faster and cheaper construction of future factories.

Tesla CEO Elon Musk has called this new system “revolutionary” and more advanced than any other production system in the world. According to him, this change in production process could potentially cut production costs in half, which is crucial for their goal of creating a more affordable electric car to meet slowing demand. However, analysts caution that Tesla’s new system is unproven and may come with inefficiencies and risks. A recent analysis by Bloomberg suggested that the new modular manufacturing process might only reduce costs by a third, not half as Tesla claims.

Despite this uncertainty, Tesla delivered 1.8 million cars last year and aims to produce 30 million cars by 2030. Achieving this goal will require significantly cheaper cars in their lineup. The success of this new production system could be a game-changer for Tesla’s future growth and profitability as it allows them to manufacture cars at scale without sacrificing quality or increasing costs.