JL Warren Capital LLC , an equity research firm focused on Chinese companies, has issued a note saying Tesla suppliers are receiving parts orders that indicate the company’s production pace is improving.
The firm says SAS Automotive, a German cockpit manufacturer and assembler, ordered 20,000 display screens for the Model 3 in May, and 10,000 in June from a sole producer in China, according to a Bloomberg report.
The Chinese supplier plans to produce about 58,000 screens in the third quarter, which would nearly meet Tesla’s goal of 20,000 cars produced for the month.
Tesla has missed its Model 3 production targets every quarter since the car was introduced. Chief Executive Elon Musk said on last week’s earnings call that he’s most excited about a “rapid increase of output.” He said Model 3 production has achieved a “peak hour” equivalent to a rate of 5,000 cars per week. Musk said “if you can achieve it even once,” a focus on refinement will help you eventually sustain the rate.