Tesla Might Team With Magna For Model 3 Production In Europe

Silver Tesla Model 3 charging

OCT 16 2017 BY ERIC LOVEDAY 37

Tesla Model 3 at Atascadero, CA Supercharging station (via Mark F!)

One way to possibly free up additional production for the Tesla Model 3 would be to expand to outside the U.S.

Makes sense, right?

Rumors suggest that Tesla may actually be in talks with a supplier in Europe for Model 3 production beyond the borders of the U.S.

Tesla Model 3

Tesla CEO Elon Musk at the Model 3 handover event.

This rumor comes to us via a Tesla supplier by the name of Polytec.

That supplier told shareholders that there’s a possibility Tesla will turn to the another supplier for more than just parts. It’s believed that Tesla may in fact reach out to Magna for production of its electric vehicles in Europe.

Now, here’s where it gets even more confusing. Polytec Finance Chairman Peter Haidenek allegedly told shareholders that Magna, one of the world’s largest suppliers, has been contacted to possibly produce major components ( or even entire vehicles) for Tesla in Europe. Here’s what Haidenek told shareholders (via Google Translate)

“We are currently in close contact with Tesla, just a few days ago two colleagues in Silicon Valley were visiting Tesla. The top spot on the conversation agenda was the possible commitment of Tesla in Europe. We expect Tesla to become active in Europe. The starting time and location do not yet seem to be determined. Tesla sees us as one of the preferred solution providers for their possible production in Europe. The product range to be supplied by us in such a case could, among other things, cover the encapsulation of the batteries, Tesla has shown great interest in our developments. “

Why would Polytec care? As a major supplier in Europe, this could mean Polytec would have the chance to become a top supplier for the Teslas produced (or major components manufactured) on the other side of the Atlantic.

It’s long been known that Tesla has sought manufacturing capabilities outside of the U.S., so a move such as this shouldn’t be surprising. However, this is the first time we have what seems to be concrete information on foreign production. And Magna is no stranger to electric car production, so this intel seems at least feasible.

Source: deraktionaer.de

Categories: Tesla

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37 Comments on "Tesla Might Team With Magna For Model 3 Production In Europe"

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bro1999

Magna was the supplier that pretty much built a Ford Focus EV prototype for Ford brass to see, and Ford was so impressed they ended up using Magna’s design for the production Focus EV.

Knowing how much Tesla likes to keep this “in house”, this would be surprising though. I guess anything to get you out of production hell quicker?

Bonaire

They need to do something. You cannot hubris your way to 1MM a year run/sale rate.

Robb Stark

That something is a new Tesla auto factory in Europe.

Tesla will not share margin with dealers, much less contract manufactures.

Curt C. Richerund

Then they will fail.

This is how it’s done in the real world.
Tesla are in way over their skis…

Steyr
Magna

There are options…
“all in house”?

No, that’s a path to Chap 11

dinhh68

you sound like you own a lemonade stand and telling the big boys how to run a business. LOL

L'amata

A Lemon stand operator or a Tesla Stock shorter hoping the stock hits the skids.. l m a o

JayTee

How does Tesla qualify as a big boy?

They produce 100k cars / year at a loss.

Steve Townsend

…..sigh…..here, maybe I can help…

Lemonade stand operation is smaller than (<) any auto manufacturer.

dinhh68

and you’re an owner of a kool-aid stand and a VW diesel Golf who loves to spread fake news about Tesla. ROTFLOL

floydboy

Huh??

Tom

Using someone else’s balance sheet/capital for expansion of production would allow acceleration of Tesla’s expansion.

pjwood1

Given “ban” news, prospective EU sales of Model 3 can’t be going down, regardless of any “production hell”.

Someone out there

Sounds like a good idea to me. It’s more efficient to send batteries and drive train components to Europe than entire finished cars. Anyone can weld car bodies and the rest of the components are made by suppliers anyway.

JayTee

If anyone can weld car bodies, why employ Magna?

Someone out there

Because that’s the service they offer?

unlucky

Tesla is finally figuring out how the big boys do it. When done correctly it’s a very smart way to make vehicles.

Outsourcing makes a lot of sense and surely Tesla will use more and more of it. Even if this deal isn’t true.

DJ

Ahh the Magna Model 3. I can see it now.

L'amata

Magna Knows mass auto production and Builds a good quality car.

Gazz

They are already about today make the Jaguar I-pace hole. So it completely possible.

Kdawg

Magna should just make their own EV and call it the Magnet 3. “It holds to the road like a magnet.” (TM)

Terawatt
Interesting rumor, but what we really want to know is what’s happening in Fremont. And near Reno. Will we get estimates for October deliveries? How many did Tesla say they’d deliver on October, back when they said they’d deliver 1500 in September? Has Tesla revised the ramp-up plan? Do they still say they expect to reach 5000/week this year? If not, when? Obviously it’s difficult to predict. But it’s hard to understand how Tesla could have opinions about this before and then say nothing when it turns out they are nowhere near meeting their own ambitious targets. All I know is they haven’t revised my delivery estimate. Perhaps they think I’ll ask for my deposit back if they give me their honest best guess?? I’m having a very hard time trusting Tesla these days. Not because they fail to meet their own timeline, but because they so completely fail to communicate whenever there’s bad news – which is of course when it’s really important. They are not transparent and choose to let bad news be known from financial reports they are required to file. In short, Tesla looks more and more like amateur hour. Say what you want about the… Read more »
Doggydogworld

“How many did Tesla say they’d deliver on October,..”

They didn’t. They said they’d produce (not deliver) 1500 in September and 20,000 in December. They gave no numbers for Oct/Nov, but if you add numbers to their “S curve” chart it’d be ~5k October, 10k November.

The original October number isn’t relevant right now, anyway. The question is how far behind they are. If they make 1500 in October they’re one month behind. That’s extremely good by Tesla standards (had MSFT missed a Windows delivery date by only one month back in the day industry followers would have died of shock). If they’re still at 100-200/month in October they’ll start to feel some heat.

Murrysville EV
@Terawatt: I’m right there with you. My delivery date still says Dec – Feb, but I never believed the earlier date, and now I don’t believe the later date. I’m very put off by the NDA thing on the first deliveries (not a hallmark of a *production* vehicle). The Model 3 pricing is about 15% higher than I expected, and that’s a stretch for me. The recent firings of 5% of the Fremont workforce at this critical time tells me management either made a lot of bad hires, or is looking for scapegoats. Either way, the post-firing atmosphere will be terrible. The Model 3 is obviously still not ready, due to design bugs, feature limitations (no FM radio?, gimme a break), and production problems. I’m now considering other options, both EV and ICE. I’m not sure I want the drama of owning a Tesla after all; I could go buy a Bolt EV today or Leaf 2.0 in a few months (after swearing I wouldn’t), and drive home with confidence in the product and the mfr. It’s time for Tesla to rebuild confidence in its reservation base, which is much larger than it entire installed base. If the reservation holders… Read more »
rc368

There’s just something about your post that seems like you’re a professional obfuscator. That’s a real thing these day’s we all know.

Serial anti tesla troll thomas

Oh my god…even unable to assemble cars by themself…another step to the cliff

floydboy

All those Model 3s running around are unassembled?!

windbourne

lots of stories in the past have made all sorts of wild claims about Tesla outsourcing.

This is likely another 1 that is taken out of context.

Jason

Didn’t Tesla buy a company in Germany just because they wanted that tech for their assembly line?
Maybe the logical step is they buy Magna and then they have their European assembly plant. No need to outsource at all.

JyChevyVolt

Buy Magna? How?

(⌐■_■) Trollnonymous

Off topic but…

Dual Charger ports for Tesla’s in China…

https://electrek.co/2017/10/16/tesla-new-dual-charge-port-design-model-s-model-x/

Nix

I don’t have full confirmation on this, so I hesitate to post. But it looks like the Tilburg factory capacity is not enough for the upcoming Model 3 numbers along with the unexpected growth in S/X numbers when orders started going up in July.

Utter speculation:

Tesla may need somewhere like Magna to temporarily do the same work currently done at Tilburg until they can complete the European Gigafactory. Magna is a great choice, because they specialize in this sort of contractual shorter term stuff. No need to permanently expand Tilburg just for a short term need.

Will post confirmation if I can get it.

Bonaire

Tilberg doesn’t make whole cars but does final mild assembly. For import tax avoidance purposes…

Nix

Yes, that is 100% correct. You are getting what I’m talking about.

Johnny99

Use the Saab plant in Sweden instead. It is ready to use.

Another Euro point of view

Could that become the first Tesla with well adjusted body panels ?

floydboy

You’re cute, but late.

Accent

Perhaps with Magna we stand a better chance of getting a Model 3 station wagon or hatchback, which is what the European market demands.