Exactly as expected, Tesla appears to be pulling out all the stops at the end of the quarter and the year. Déjà Vu?
Pegatron, a Taiwan-based electronics manufacturing company, has pointed out an increase in orders this quarter for Tesla Model 3 central control systems. This comes as no surprise since we all know Tesla has a habit of ramping up deliveries at the end of each quarter, and in a bigger way than the previous quarter and previous year.
It's difficult to estimate Tesla deliveries. However, there are many indicators of whether or not an automaker is producing more vehicles. One common indicator is supplier orders. It doesn't take a rocket scientist to understand that to build more cars you need more parts. And, if Tesla exhausts its parts supplier during its end-of-year push, it needs to have incoming parts ready for Q1 2021.
With that said, there's no way to know for sure that an increase in parts orders applies to production and deliveries scheduled for the next few weeks, though it makes enough sense to conclude that the influx of parts will lead to an increase in production. We just don't know exactly when that increase is happening, though the end of the quarter and the end of the year is a highly educated guess.
According to the sources, Pegatron has seen an uptick in orders from Tesla for the first quarter of 2021. In addition, the electronics supplier said it's currently working on plans to build U.S.-based production facilities specifically for serving Tesla.
Teslarati says the information from Pegatron came from DIGITIMES, which spoke with sources familiar with the matter. The publication doesn't point so much to the end of the year push as it does to the future of Tesla. The Silicon Valley automaker aims to ramp up production and deliveries significantly in 2021, as more electric rivals come to market and the global demand for EVs and batteries accelerates.
As far as we understand, Tesla remains production constrained. It says it delivers every car it can build, and many people across the globe experience wait times for their Tesla vehicles. However, the company is currently expanding in a number of ways, including building new global factories. If Tesla expands its global factory footprint and production capacity, but doesn't have the batteries and parts it needs to move forward, it would be a lost cause.
How many cars will Tesla deliver in 2020? Will it meet or exceed its tough delivery targets? If we couldn't have already guessed, it seems the ramp-up has already been underway for some time. Let us know your estimates in the comment section below.