Tesla supplier hints at massive increase in Model 3 production

A Tesla supplier in China says that it is doubling the production of parts it supplies for Tela’s Model 3 program — hinting at a massive increase in Model 3 production capacity.

Earlier this week, we reported on an email from Tesla Automotive President Jerome Guillen to employees about preparing a mysterious production capacity increase.

Tesla is currently capable of producing 7,000 Model 3 units per week at its Fremont factory and the company has been talking about its upcoming Gigafactory 3 in Shanghai adding 3,000 units per week to its Model 3 production capacity.

Now Digitimes reports that China FineBlanking Technology (CFTC), a Tesla supplier of precision stamping services, “will increase monthly shipments for components of relays used in Tesla Model 3 vehicles from about 20,000 units currently to 40,000 units beginning August 2019”.

“CFTC has also landed orders for other components used in Model 3, with shipments to begin in October 2019, the sources said. As Tesla is hiking Model 3 output and its Gigafactory 3 in Shanghai, eastern China, will kick off production of the electric vehicle by year-end 2019, CFTC’s shipments to Tesla are expected to rise, the sources noted.”

The total production capacity aimed to be achieved with those changes is still unclear.

Tesla has previously been talking about starting production at Gigafactory 3 in early Q4 (October) and ramp up to 3,000 units per week by the end of the year.

This report actually makes sense in the weird context of Jerome’s email to employees.

If CFTC is doubling production of its Model 3 parts, it wouldn’t be just for Gigafactory 3 in Shanghai, which is expected to produce less than half of the production capacity in Fremont.

Therefore, it would mean that Tesla is also planning to increase Model 3 production in Fremont, which sounded like what Jerome was saying in his cryptic email to employees.

But are we really talking about doubling production? I somehow doubt it.

I think Model 3 still has room for growth, but a doubling of capacity might be too ambitious.

We will see as the picture becomes clearer in the coming months.

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Source: Electrek.co

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