Tesla cuts Model 3 part orders to Taiwan supplier Hota -report

Hota Industrial Mfg.

27/10/2017 06:38

TAIPEI, Oct 27 (Reuters) - Luxury electric carmaker Tesla 
 TSLA.O  plans to slash by 40 percent its orders for parts for 
the new Model 3 mass-market sedan from Taiwanese auto component 
maker Hota Industrial Mfg. Co  1536.TW  from December, according 
to a media report. 
    Shares of the parts maker dropped nearly 9 percent after the 
Economic Daily News reported, citing Hota Chairman Shen 
Kuo-jung, that Tesla had told the firm orders would be cut to 
3,000 sets per week from 5,000 sets starting December, due to a 
"bottleneck" in the production of Model 3.   
    Tesla may delay scheduled weekly shipments of 10,000 parts 
in March by a few weeks until May or June, the report added.  
    Hota, which makes gears and axles for vehicles, and Tesla 
did not immediately respond to a request for comment. 
    Earlier this month, Tesla said production bottlenecks had 
left the company behind its planned ramp-up for the new Model 3 
sedan. It began production of the model in July.  urn:newsml:reuters.com:*:nL4N1MD4G4 
    Hota shares were down 7.6 percent at 0530 GMT. 
 
 (Reporting by Jess Macy Yu, Editing by Miyoung Kim and Himani 
Sarkar) 
 ((JessicaMacy.Yu@thomsonreuters.com; +886 2 2500-4882;)) 
 
Keywords: TESLA TAIWAN/HOTA