Tesla Model 3 suppliers are reporting an uptick in orders, and this may not be quite the same situation that we saw early on in Model 3 production.
Yes, of course, there are people that are going to say that there was a huge increase in supply orders for the Model 3 last summer. We, along with many others, reported it as potential for a production surge. However, at that time, nobody seemed to really have any good idea about where Model 3 production was headed, including the Tesla and its CEO.
In an effort to be safe and stay ahead of the game, Tesla placed large supply orders early on and canned suppliers that couldn't live up to expectations. Later, we heard that many of those "extra" parts were simply taking up space on the factory floor. This was likely due to the fact that the automaker was optimistic and proactive, as it didn't anticipate all of the problems that ensued.
Fast forward to current day and we're pretty confident that Tesla has a much better handle on what production looks like and where it's headed, since we've seen much more consistency as of late. This means that supply orders at this point should more closely mirror production.
With all of that being said, Tuesday, JL Warren Capital LLC revealed that it has discovered some signs that suggest increased Model 3 production. In a note to clients, the firm points to growth in supply orders related to the popular electric sedan. Specifically, it mentions an order of 20,000 touchscreens from California-based SAS Automotive in May, along with another 10,000 from a Chinese company.
The note went further to provide that the unnamed Chinese company plans to produce some 58,000 screens during the third quarter, which would match up nicely with Tesla's 5,000 per week production goal for the Model 3.
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