Tesla Suppliers Raise Prices To Meet Quality, Timeline Targets

Tesla Model X

JUN 1 2017 BY ERIC LOVEDAY 6

We can do quick or we can do cheap, but we can’t do both.

Tesla Model 3 “release candidates” have hit the road for product validation

That seems to be the word from several suppliers for the Tesla Model 3.

And the Model X too.

As Tesla rushes to get the Model 3 to market on time, suppliers are racing behind the scenes too.

Reuters reports that last-minute design changes and tweaks to development timelines are pushing Model 3 suppliers to the limits. The changes have led to re-negotiations to terms of supply agreements too.

The Model X has been cited as problematic by at least one major publication. Some issues here and there have been with the X since day one. Tesla is actively trying to solves these niggles and is now in the process of “seeking new and less expensive suppliers for certain parts,” according to Reuters. Tesla is “attempting to redesign certain parts to make them less expensive to produce.”

This is the norm in the industry. Get a car to market, perfect it, then cut costs. But we’re not so sure the Model X got to that perfect it stage just yet, so maybe it’s a little early to look into cost-cutting measure. Just saying.

Source: Reuters

Categories: Tesla

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6 Comments on "Tesla Suppliers Raise Prices To Meet Quality, Timeline Targets"

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fred

No falcon wing doors on the X. That will cut costs and make it much more appealing.

Rob Stark

No FWD would make the X an overgrown Prius.

Far less appealing.

A million future sales from China would disappear.

TP

Sorry you don’t care for them.

Personally, I like the falcon wing doors and wish you could get all four doors that way. With more and more places going to super tight parking spots, it would make getting in and out much easier.

It would be nice if they offered it both with and without, so that the market could decide.

TOni

+1

They look silly for a lot of potential customers IMHO.

Nix

“seeking new and less expensive suppliers for certain parts”

and

“attempting to redesign certain parts to make them less expensive to produce”

describes the work being done in every modern factory building anything anywhere in the world. That’s what the manufacturing industry does.

Nix

“Suppliers Raise Prices”

Sounds like every supplier to every company everywhere in the world too….