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Reuters: Suppliers question Tesla’s goals for Model 3 output in late 2017

tesla model 3

Reuters is out with a new report claiming that suppliers are “questioning” Tesla’s goal to significantly increase its production output for the Model 3. Reuters didn’t disclose the suppliers in question but some of the reporting came from the publication’s Seoul division in South Korea.

Since the unveiling of the Model 3, several reports from suppliers came out of South Korea, including a Reuters report about LG Display being selected to be “a sole supplier for the 15-plus inch center display of Model 3.”

Another report from South Korea claimed that Tesla selected Hankook Tire, South Korea’s first and the world’s seventh tire manufacturer, to supply the stock tires for the Model 3 program.

The new Reuters report revolves around Tesla setting a deadline for Model 3 internal parts and supplier parts for July 1st, 2017.

Citing “several supplier industry executives familiar with Tesla’s plans “, Reuters says that in the past three months, Tesla started letting suppliers know that the company was doubling its original production projections to 100,000 Model 3s in 2017 and 400,000 in 2018.

The statement compares to Tesla CEO Elon Musk saying during the first quarter conference call that he thinks Tesla could produce between 100,000 to 200,000 Model 3 vehicles in late 2017 and 500,000 vehicles – a mix of Model 3, S and X vehicles – in 2018.

The report then goes to on to highlight doubts about Tesla being able to stick to the July 1st date – something Elon Musk himself said was unlikely. You can read the full report here.


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