Tesla plans to cut by 40 percent its orders for parts for the new Model 3 mass-market sedan from Taiwanese automobile part maker Hota Industrial Mfg. Co from December, a media report stated.
Shares of the parts maker fell almost 9 percent after the Economic Daily News reported, mentioning Hota Chairman Shen Kuo-jung, that Tesla had informed the company orders would be cut to 3,000 sets each week from 5,000 sets starting December, because of a “bottleneck” in the production of Model 3.
Tesla may postpone scheduled weekly deliveries of 10,000 parts in March by some weeks until May or June, the report added.
Hota, that makes gears and axles for automobiles, and Tesla did not right away react to a request for comment.
Previously this month, Tesla stated production bottlenecks had left the company behind its organized ramp-up for the new Model 3 sedan. It started production of the model in July.