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Tesla cuts Model 3 part orders to Taiwan supplier Hota: report

Published 10/27/2017, 01:43 AM
Updated 10/27/2017, 01:50 AM
© Reuters. Tesla Model 3 cars are seen as Tesla holds an event at the factory handing over its first 30 Model 3 vehicles to employee buyers at the company’s Fremont facility in California

TAIPEI (Reuters) - Luxury electric carmaker Tesla (O:TSLA) plans to slash by 40 percent its orders for parts for the new Model 3 mass-market sedan from Taiwanese auto component maker Hota Industrial Mfg. Co (TW:1536) from December, according to a media report.

Shares of the parts maker dropped nearly 9 percent after the Economic Daily News reported, citing Hota Chairman Shen Kuo-jung, that Tesla had told the firm orders would be cut to 3,000 sets per week from 5,000 sets starting December, due to a "bottleneck" in the production of Model 3.

Tesla may delay scheduled weekly shipments of 10,000 parts in March by a few weeks until May or June, the report added.

Hota, which makes gears and axles for vehicles, and Tesla did not immediately respond to a request for comment.

Earlier this month, Tesla said production bottlenecks had left the company behind its planned ramp-up for the new Model 3 sedan. It began production of the model in July.

Hota shares were down 7.6 percent at 0530 GMT.

Latest comments

tesla has to drop too. the target of December when you have less parts produced can't be reached, because less cars will be made in order to be delivered too. This is a 3rd reason why Tesla's equity price has to fall to the referred target of our team
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