Tesla Model 3 Interior
A China-focused equity research firm reported that there has been a delay in the shipment of the Model 3's center console screen, but Tesla says the report is "absolutely false".
JL Warren Capital, headed by Shanghai-born Jungheng Li, is one of few firms that provides reputable China investment advice. The company has relied on customs data to track automotive displays that are expected to be headed to Tesla. Last year, the information correlated nearly exactly with Tesla's production figures.
A look into at a "release candidate" Tesla Model 3 (Licensed via Brian Williams – SpiedBilde)
Recently, JL Warren found that the company that it assumed makes the Model 3's center display is facing a delay in shipments. The note to clients read:
“There has been a delay in the center console shipment. Japan Display (6740 JP) makes the LCD screens for the Model 3. TPK (3673 TPE) and Lens Technology (300433 SHE) laminate the panels. Although we believe that the screen yield issue will eventually get worked out, it currently has delayed the touch screen shipments to the factory in California.”
The firm's research showed that 730 displays were shipped to Tesla in June. It's estimated that it takes about a month for the shipment to arrive and clear customs. So, making the 30 initial Model 3s shouldn't be affected. Further, the firm reported:
“20-25K screens will be shipped via air to California in Q3 (<2K,in July,~7K in August, and ~14K in September) and 15K per month throughout Q4.“
This means Tesla could produce about 70,000 Model 3s by the end of the year, which is within CEO Elon Musk's recent estimates.
So, JL Warren was using unverified information to say that Tesla may be facing a delay, which really wouldn't even affect the automaker. Additionally, when a Tesla spokesman was questioned about the issue, he said that the claims are "absolutely false." He added:
"there is no issue with the supply of any aspect of our screens for Model 3.”
To add insult to injury, Tesla also responded to Forbes:
“the report mentions Japan Display as the maker of the LCD screens, despite the fact that they are not even a supplier of ours.”
While JL Warren has seen much success in the past, it seems that they are not spot on regarding this non-issue. This just goes to show that analysts may use whatever information they can get to put pressure on a company and to alert clients, even if it may not be true or contains false information. At least they told their clients that they expected the issue to be worked out eventually, but apparently there was no issue, or it's already worked out.