Tesla CEO Elon Musk warned suppliers that the Model 3 program would be a rough one, but they are finally starting to see the light after months of delays.

A report from the supply chain shows that some suppliers are now seeing high volumes from the EV program.

JL Warren Capital, an equity firm based in China tracking local suppliers, has seen “encouraging signs” in Tesla’s supply chain (via Bloomberg):

“Suppliers for the electric vehicle maker’s more affordable sedan have started seeing increased orders, the research firm said in a note to clients. SAS Automotive, a German cockpit manufacturer and assembler with one plant in California, ordered 20,000 display screens for the Model 3 in May, and 10,000 in June from a sole producer in China, according to the research firm.”

The firm says that the supplier is preparing 58,000 vehicles during the third quarter or about 5,000 per week, which is Tesla’s projected production exit rate in the second quarter.

The Model 3 production ramp has suffered delays and it has been difficult on Tesla since they have invested in the production of 5,000 vehicles per week, but they have been falling short of that goal for months now.

But it’s also difficult on Tesla’s suppliers who have also invested in production capacity increases to respond to the demand.

Last year, a Japanese supplier explained how Tesla was pushing them to develop new tools for mass production and the demand for the Model 3 has convinced suppliers to establish new production capacity around Fremont, where Tesla is producing the Model 3.

Now after being sold the idea that the vehicle will be produced by the thousands per week, they are finally starting to see some significant volume from Tesla.

The company released an update on Model 3 production last week and said that they have been able to maintain a production rate of over 2,000 vehicles per week and they see a clear path to 5,000 per week over the next 2 months.

The Model 3 is made of over 10,000 unique parts and according to the Model 3’s Monroney Sticker, 50% of the parts are from US/Canada, 25% from Mexico, and the rest from around the world.

If any of those parts doesn’t make it to Tesla’s Fremont factory in time, the vehicle can’t be manufactured.

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