Tesla cuts Model 3 part orders to Taiwan supplier Hota: report
Reuters
Published Oct 27, 2017 01:43AM ET
Tesla cuts Model 3 part orders to Taiwan supplier Hota: report
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.
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Written By: Reuters
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