Tesla Model 3 Supplier Told to Dial Back December Output
Hota Industrial Manufacturing Co., a Taiwan-based automotive components supplier, has allegedly been instructed cut back its parts production for Tesla from 5,000 units a week to 3,000.
Chairman of Hota Industrial, Shen Kuo-Jung, told local media the company received a memo from Tesla this week saying production bottlenecks had slowed output of the Model 3 from its Fremont, California factory. The company said its December order from Hota would be cut by 40%, but did not indicate if orders for the following months would be altered as well.
Hota was a supplier for the Model S and Model X, and has also entered an agreement to supply components for the Model 3. It’s not clear what kind of parts Hota supplies Tesla with, but Teslarati reports it may be gear systems.
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News that Tesla has trimmed its component orders for the Model 3 is hardly surprising, seeing as it missed its goal of delivering 1,500 Model 3s in the third quarter. The automaker was hoping to be building around 5,000 Model 3s a week by December, but with the news that it’s adjusted its component orders for the month, that seems highly unlikely.
Tesla will release a third-quarter earnings report next Wednesday – its first earnings report published since the official rollout of the Model 3 to customers.
[Source: Teslarati]
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Sam McEachern holds a diploma in journalism from St. Clair College in Windsor, Ontario, and has been covering the automotive industry for over 5 years. He conducts reviews and writes AutoGuide's news content. He's a die-hard motorsports fan with a passion for performance cars of all sorts.
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