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Tesla idles Fremont production line for Model X upgrade

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This is really hopeful news, I can't wait to see the Model X rolling off the assembly line.

The factory floor is quite a sight if you haven't taken a tour, I recommend you do! It's also a trip to watch folks taking delivery of their new cars, such optimism and excitement! (happens under the tent nearly every day of the week.)
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Can they retool the quality of the paint job? Or do Cali regulations force them into the current approach that causes many people to spend thousands more on protection and coatings?
I think the paint type is subject to envrionmental regulations causing them to use a softer paint than say, Ford does.

That said, people who buy high-end cars made elsewhere still spend thousands more on protection and coatings as coatings keep them shiny and no paint type is going to prevent hood chips. You should see the hood of my Lexus IS 350, painted in Japan, no aftermarket protection added. 5 years old and at least 10 noticeable chips in the hood (paint color is black). Looks embarrassing parked next to my MS.
 
Can they retool the quality of the paint job? Or do Cali regulations force them into the current approach that causes many people to spend thousands more on protection and coatings?

It depends on the obsessive tendencies of the owner. Opti coat and paint armor were in business long before Tesla came around, and I doubt the 50K Model S's on the road are what's keeping them around.
 
I expect that capacity of the Fremont facility will be higher than production for some time. This reconfiguration and expansion will allow Tesla Motors to build 1,000 vehicles per week for production. I think the actual capacity of the location will be more than that, perhaps as high as 2,000 to 3,000 and that will be filled out once a more plentiful shipment of battery cells from Panasonic has arrived.
 
If they are retooling to increase production capacity, does that mean if a vehicle is ordered now it will arrive much sooner than the estimated delivery frame? (The current estimate of late October)

I think the delivery times would still be stretched out for a while still. They need to catch up for the down time. Plus I believe they will be starting (or have already) delivery of right hand drive to additional countries of people who have waited a long time already. Then towards the end of the year starting the Beta X productions.

I do not track things closely, but would expect a 2-4 month wait for USA deliveries for 6 months or so.