• Advertise
  • Contact Us
  • Supplier Directory
  • SCB YouTube
  • About Us
  • Login
  • Subscribe
  • Logout
  • My Profile
  • LOGISTICS
    • Air Cargo
    • All Logistics
    • Facility Location Planning
    • Freight Forwarding/Customs Brokerage
    • Global Gateways
    • Global Logistics
    • Last Mile Delivery
    • Logistics Outsourcing
    • LTL/Truckload Services
    • Ocean Transportation
    • Parcel & Express
    • Rail & Intermodal
    • Reverse Logistics
    • Service Parts Management
    • Transportation & Distribution
  • TECHNOLOGY
    • All Technology
    • Artificial Intelligence
    • Cloud & On-Demand Systems
    • Data Management (Big Data/IoT/Blockchain)
    • ERP & Enterprise Systems
    • Forecasting & Demand Planning
    • Global Trade Management
    • Inventory Planning/ Optimization
    • Product Lifecycle Management
    • Robotics
    • Sales & Operations Planning
    • SC Finance & Revenue Management
    • SC Planning & Optimization
    • Supply Chain Visibility
    • Transportation Management
  • GENERAL SCM
    • Business Strategy Alignment
    • Customer Relationship Management
    • Education & Professional Development
    • Global Supply Chain Management
    • Global Trade & Economics
    • Green Energy
    • HR & Labor Management
    • Quality & Metrics
    • Regulation & Compliance
    • Sourcing/Procurement/SRM
    • SC Security & Risk Mgmt
    • Supply Chains in Crisis
    • Sustainability & Corporate Social Responsibility
  • WAREHOUSING
    • All Warehouse Services
    • Conveyors & Sortation
    • Lift Trucks & AGVs
    • Order Management & Fulfillment
    • Packaging
    • RFID, Barcode, Mobility & Voice
    • Warehouse Automation
    • Warehouse Management Systems
  • INDUSTRIES
    • Aerospace & Defense
    • Apparel
    • Automotive
    • Chemicals & Energy
    • Consumer Packaged Goods
    • E-Commerce/Omni-Channel
    • Food & Beverage
    • Healthcare
    • High-Tech/Electronics
    • Industrial Manufacturing
    • Pharmaceutical/Biotech
    • Retail
  • THINK TANK
  • WEBINARS
    • On-Demand Webinars
    • Upcoming Webinars
    • Webinar Library
  • PODCASTS
  • WHITEPAPERS
  • VIDEOS
Home » Tesla Parts Spotted Piled Outside San Jose Machine Shop

Tesla Parts Spotted Piled Outside San Jose Machine Shop

April 17, 2018
Fortune

The parts were spotted by CNBC outside a shop called JL Precision, not far from Tesla’s Fremont factory. They included door frames and a variety of other components shipped from suppliers in China and Ohio. Unnamed sources within Tesla told CNBC the shop was used to rework designs or correct flaws in components.

But Tesla spokespersons have strongly denied those claims, insisting that JL Precision does not rework flawed parts, and only applies coatings that are a normal part of production.

Outsourcing the fixing of flawed parts is common practice in the auto industry, according to a former GM plant manager who spoke to CNBC. But Tesla appears to be dealing with a higher than average ratio of problems, with one engineer there estimating that as many as 40 percent of parts manufactured by Tesla or its suppliers required fixes.

Multiple current and former Tesla employees told CNBC that Tesla spent less time vetting suppliers than is standard in the auto industry, and that some of those responsible for the screening were not experienced with ISO standards and other quality assurance methods normally used in that process. Tesla has disputed those statements as well, insisting they have a rigorous supplier screening process. Tesla has also said that parts fixes aren’t adding to delays in Model 3 production.

Read full article

    RELATED CONTENT

    RELATED VIDEOS

    Technology Supply Chain Visibility Global Supply Chain Management Sourcing/Procurement/SRM Supply Chain Security & Risk Mgmt Automotive Industrial Manufacturing Pharmaceutical/Biotech
    KEYWORDS Automotive Global Supply Chain Management Industrial Manufacturing North America Pharmaceutical/Biotech SC Security & Risk Mgmt Sourcing/Procurement/SCM Supply Chain Visibility Technology
    • Related Articles

      'Human-Machine Interface' Auto Parts to See 20 Percent Growth in 2015, Report Says

      While Elon Musk Loves Tesla's New Tent Factory, Others Aren't So Sure

      Elon Musk’s Lofty Goals for Tesla Made This Supplier Recoil at Risk

    • Related Directories

      ProcureAbility

      GLS US

    Fortune

    Wal-Mart Is Testing Grocery Delivery Straight Into Your Fridge

    More from this author

    Subscribe to our Daily Newsletter!

    Timely, incisive articles delivered directly to your inbox.

    Featured Product

    Popular Stories

    • A container ship with cargo docked at the Port of Charleston

      Port of Charleston to Pause Operations at Leatherman Terminal

      Global Gateways
    • US Treasury Check with Tariff Stamp

      Will Trump’s New Tariffs Wipe Out Importers’ IEEPA Refunds?

      Global Trade & Economics
    • A grey concrete soccer stadium with a red lining around the upper edge of the bowl

      What Mexico's World Cup Infrastructure Push Means for Manufacturers

      Logistics
    • TWO COMMERICAL SHIPS AT SEA UNDER A DARK SKY

      Container Carriers Eye Return to Red Sea Route

      Global Gateways
    • Oil wells silhouetted at sunset, set against a faded image of a Cuban flag

      Cuba Power Grid Collapses as Fuel Crisis Hits Breaking Point

      Global Supply Chain Management

    Digital Edition

    2026 esg cover main scb q2 2026 cover

    SupplyChainBrain 2026 ESG Guide: ESG — The Supply Chain’s Biggest Secret

    VIEW THE LATEST ISSUE

    Case Studies

    • Recycled Tagging Fasteners: Small Changes Make a Big Impact

    • A GRAPHIC SHOWING MULTIPLE FORMS OF SHIPPING, WITH A HUMAN STANDING AT THE CENTER, TOUCHING A SYMBOLIC MAP OF THE WORLD

      Enhancing High-Value Electronics Shipment Security with Tive's Real-Time Tracking

    • A GRAPHIC OF INTERLACING HONEYCOMBED ELEMENTS REPRESENTING GLOBAL BUSINESS TRANSACTIONS

      Moving Robots Site-to-Site

    • JLL Finds Perfect Warehouse Location, Leading to $15M Grant for Startup

    • Robots Speed Fulfillment to Help Apparel Company Scale for Growth

    Visit Our Sponsors

    4flow Arkieva Blue Yonder
    Carton Cloud CoEnterprise Dassault
    Duravant E2Open EPG
    General Logistics Systems GEP Hy-Tek
    iGPS Korber Lyngsoe
    PeakAI Procurability Quinyx
    SAP Sikick Staples
    Systech S&P Global Mobility TADA
    Tive TransImpact US Bank
    Werner Enterprises WSI
    • More From SCB
      • Featured Content
      • Video Library
      • Think Tank Blog
      • SupplyChainBrain Podcast
      • Whitepapers
      • On-Demand Webinars
      • Upcoming Webinars
    • Digital Offerings
      • Digital Issue
      • Subscribe
      • Manage Email Preferences
      • Newsletters
    • Resources
      • Events Calendar
      • 2026 Event Coverage
      • SCB's Great Supply Chain Partners
      • Supplier Directory
      • Case Study Showcase
      • Supply Chain Innovation Awards
      • 100 Great Partners Form
    • SCB Corporate
      • Advertise on SCB.COM
      • About Us
      • Privacy Policy
      • Contact Us
      • Data Sharing Opt-Out

    All content copyright ©2026 Keller International Publishing Corp All rights reserved. No reproduction, transmission or display is permitted without the written permissions of Keller International Publishing Corp

    Design, CMS, Hosting & Web Development :: ePublishing