- Tesla’s stock is falling after a report about Model 3 parts production cuts.
- The company is struggling to get past production bottlenecks for its new vehicle.
- Check out Tesla’s live stock price here.
Tesla is falling after the Economic Daily News out of Taiwan reported that the company has cut production orders at one of its Model 3 parts suppliers.
Tesla shares are down 1.85% at $US320.37 a piece after the company reportedly cut orders at Hota, a manufacturer of gears and axles, by 40%. The carmaker temporarily cut its order from 5,000 sets per week to 3,000 sets per week.
Tesla cut the size of its orders due to production bottlenecks with the Model 3, according to the report. The company has faced problems getting its first mass-marketed vehicles out the door and has fallen short of its production expectations for the year. By 2018, Tesla had said it wanted to be making 20,000 Model 3s a month but has only managed to make several hundred in total so far.
Tesla is working to resolve the bottlenecks and decided to push its new semi-truck announcement back to focus on the Model 3, which CEO Elon Musk has said is going through “production hell.”
Tesla has about 450,000 back orders for the Model 3.
Tesla shares are up 49.23% this year.
NOW WATCH: Money & Markets videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.