Tesla’s uphill battle, even with headhunted exec

Tesla Motors has hired former Volkswagen executive Peter Hochholdinger as its vice president of vehicle production following the departure of two senior production managers earlier this month.

Hochholdinger will be tasked with improving and increasing production for Tesla’s luxury Model S sedan and Model X SUV, as well as helping build a scalable, cost-effective manufacturing program specifically designed around the Model 3, says the company.

Tesla is looking to ramp up production five-fold in two years to 500,000 vehicles per year, a task many industry observers say appears nearly impossible even with the hiring of key talent.

The electric company’s aggressive new production timeframe, announced by its chief executive, Elon Musk, puts intense pressure on suppliers and calls into question the company’s ability to accelerate its assembly line.

Design of the Model 3, due in late 2017, is not yet complete, adding to the time crunch.

Hochholdinger spent 22 years at Audi, Volkswagen’s flagship premium brand, where he worked across the entire production chain for the A4, A5, and Q5 vehicles.

His oversight was for big-scale production of around 400,000 vehicles per year. He’s also been working as an advisor on a new Audi production facility in Mexico.

Last month, Tesla said it would open its first Australian stand-alone store in the third quarter of 2016.

The two-story retail facility will be located in Martin Place in the Sydney CBD, housing display vehicles and a design studio, as well as taking potential buyers on test drives from an underground carpark connected to the store.