Tesla cuts Model 3 part orders to Taiwan supplier Hota
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Luxury electric carmaker Tesla 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 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.
Questions & Answers
Q.Why has Tesla reduced its orders for Model 3 parts from Hota Industrial Mfg?
Why has Tesla reduced its orders for Model 3 parts from Hota Industrial Mfg?
Tesla has reduced orders due to a 'bottleneck' in the production of the Model 3 sedan, as reported by the Economic Daily News.
Q.By how much are Tesla's Model 3 part orders from Hota being cut?
By how much are Tesla's Model 3 part orders from Hota being cut?
Tesla plans to cut orders by 40 percent from December, reducing them from 5,000 sets to 3,000 sets per week.
Q.When did Tesla begin production of the Model 3?
When did Tesla begin production of the Model 3?
Tesla began production of the new Model 3 sedan in July.
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