Tesla cuts Model 3 part orders to Taiwan supplier Hota
Tesla cuts Model 3 part orders to Taiwan supplier Hota: Luxury electric carmaker Tesla (TSLA.O) 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 (1536.TW) 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.
Source:http://www.reuters.com/article/us-tesla-taiwan-hota/tesla-cuts-model-3-part-orders-to-taiwan-supplier-hota-report-idUSKBN1CW0H4
