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Tesla supplier hints at massive increase in model 3 production

A Tesla supplier in China has announced that it is doubling the production of parts supplied under the Tela's Model 3 program, citing a massive increase in Model 3's production capacity.

Earlier this week, we reported to employees, in an email, Jerome Guillen, president of Tesla Automotive, that they were preparing a mysterious increase in production capacity.

Tesla is currently able to produce 7,000 model 3 units a week at its Fremont facility. The company is talking about its upcoming Gigafactory 3 in Shanghai, adding 3,000 units a week to its model 3 production capacity.

Now Digitimes reports that China FineBlanking Technology (CFTC), Tesla precision stamping service provider, "will increase monthly shipments for relay components used in Tesla model 3 vehicles from about 20,000 units currently to 40,000 units as of August 2019 ".

They continued:

"CFTC has also recorded orders for other components used in Model 3, with deliveries expected to begin in October 2019, sources said. As Tesla increases the output of Model 3 and its Gigafactory 3 in Shanghai, East China, the production of the electric vehicle will start by the end of 2019, the shipments from CFTC to Tesla are expected to increase, sources said. "

The total production capacity that these changes aim to achieve is not yet clear.

Tesla previously talked about starting production at Gigafactory 3 at the beginning of the fourth quarter (October) and increasing up to 3,000 units a week by the end of the year.

Electrek's Take

This report makes sense in the strange context of email sent by Jerome to employees.

If CFTC doubles the production of its model 3 parts, it will not be just Gigafactory 3 in Shanghai, which is expected to produce less than half of Fremont's production capacity.

Therefore, it would mean that Tesla also plans to increase the production of Model 3 to Fremont, which was what Jerome said in his encrypted email to employees.

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

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

We will see as the situation clears over the next few months.

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