Tesla Model 3

Tesla Model 3

Might is not the same as has, but there seems to be some indication that Tesla will soon be ramping up Model 3 production by a significant amount.

Tesla Model 3 Production

Tesla Model 3 Production

A couple months back, we learned that at least one supplier was told by Tesla to cut back on production of a certain (or perhaps some) Model 3 parts, most likely gears and axles. Now, it seems a reversal order has been given by the automaker.

In was back in October when we reported that Hota Industrial Mfg. Co had been told by Tesla to reduce supplies of certain Model 3 parts by some 40%. The reduction was supposed to begin this December. Here's how it was reported:

"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."

Now, a new report out of Taiwan suggests a complete reversal. Hota is now saying that Tesla increased demand for the parts in question back up to 5,000 units per week sometime this month.

With virtually no forward notice though, Hota may not be able to meet this increased demand. Hota Chairman Shen Guorong says the supplier is working around the clock now in a race to fulfill the newly raised volume. Parts are even apparently being shipped out by all means possible, including by air, which is not a common method for delivery of bulky automotive parts.

Taiwan media is further reporting that other suppliers have noted increased demand for parts from Tesla for the Model 3, so maybe production will bust wide open soon.

Source: Money.udn  via Electrek