Tesla cancels contract with Model 3 supplier = delayed launch?

[bro1999]

Tesla Confirms Cancellation Of Model 3 Supply Order Due To Supplier's Inability To Meet Technical Standards

Discuss. Can't be good news for Model 3 launch timing though. The Bolt's head start may have just grown.

 

[hockeythug]

Yep. The compliance car you only can buy is like 2 states has a massive head start. Please take your wild speculation elsewhere.

 

[Tam]

...Can't be good news for Model 3 launch timing though...

I wouldn't worry about it. There's always a backup plan when a primary supplier fell through.

 

[S'toon]

Remember, Jul 1st wasn't a hard and fast goal. It was an aspirational goal. That way, if the goal isn't met, it's not a critical loss. As someone else said, there's always a backup plan with operations this size.

 

[reddy]

IMO, it is unlikely for them to have canceled the contract without having a backup plan in place.

 

[strykeroz]

Even if it resulted in a delay at least M3 is intended to be shipped here.

As at least one commentator has already noted, Tesla could even bring the manufacture of these pumps in-house and still be shipping M3 by end of this year as advertised.

 

[Krugerrand]

Can't be good news for Model 3 launch timing though. The Bolt's head start may have just grown.

I'm glad you're happy with your car. Everyone should be happy with the car they own. But your antics are getting old. The Bolt can be out for an entire decade and it won't affect the Model 3. Repeat after me; they are two entirely different vehicles pointed at entirely different segments AND any cross shopping that may occur is actually direct competition to ICE cars in either of the segments. Now let it go.

 

[McRat]

We have a Forest and Trees line of sight thingy going here.

Supplier contract failures are not news. It would be like putting out a story concerning a lost dog to the media.

The news here is that some Germans are blaming the US President for the contract failure.

Eventually that will not be news either, as soon everything from burned out light bulbs to misplaced car keys will be blamed on the President, so it will fall off the radar.

 

[RobStark]

Plan B becomes Plan A

And new Plan B is created.

Don't see any delay. This was anticipated. Not every supplier was going to make on time and on spec.

 

[stopcrazypp]

Tesla Confirms Cancellation Of Model 3 Supply Order Due To Supplier's Inability To Meet Technical Standards

Discuss. Can't be good news for Model 3 launch timing though. The Bolt's head start may have just grown.

As others pointed out, your back handed comments only invites insults to the Bolt's accomplishment. The Model 3 can be delayed for years and still overtake the Bolt's volume in a couple quarters.

As for the news, plenty of people in the article already pointed out that a supplier can be easily replaced and it's unlikely Tesla did not have a contingency plan before cancelling them. The most significant point was speculation about Tesla being pressured by Trump to do this, and denying those allegations was the main reason Tesla responded publicly.

 

[bro1999]

Back handed comments.... plenty of people on here do that to the Bolt without any prodding.

This is a serious issue for the Model 3. I don't think $100 million contracts are handed out like candy, and can be replaced simply with a trip to Suppliers R Us.

 

[stopcrazypp]

Back handed comments.... plenty of people on here do that to the Bolt without any prodding.

This is a serious issue for the Model 3. I don't think $100 million contracts are handed out like candy, and can be replaced simply with a trip to Suppliers R Us.

It's expected to have backhanded comments on the Bolt here because this is a Tesla fan forum. But if you want people to be nice about the Bolt, then backhanded comments on Tesla from you are not going to help push things in that direction.

I'm sure most people here would not go to the Bolt/GM forums and make backhanded comments there to try to rile people up.

 

[ohmman]

Back handed comments.... plenty of people on here do that to the Bolt without any prodding.

This is a serious issue for the Model 3. I don't think $100 million contracts are handed out like candy, and can be replaced simply with a trip to Suppliers R Us.

Chevrolet Bolt EV Forum - Index page

Great place to discuss if you're looking for warm confirmation fuzzies.

 

[hockeythug]

Back handed comments.... plenty of people on here do that to the Bolt without any prodding.

This is a serious issue for the Model 3. I don't think $100 million contracts are handed out like candy, and can be replaced simply with a trip to Suppliers R Us.

We see the link to your Bolt blog genius. Go push your Bolt agenda there.

 

[ItsNotAboutTheMoney]

Back handed comments.... plenty of people on here do that to the Bolt without any prodding.

This is a serious issue for the Model 3. I don't think $100 million contracts are handed out like candy, and can be replaced simply with a trip to Suppliers R Us.

Of course, $100M sounds like a lot, but it depends on what the run size is. Tesla's plans are quite big. Even 200k/yr x 5yr = 1M, so it'd only take a $100 part to be a $100M contract.

Obviously a setback to have any supplier fail to deliver, but how much depends on the part.

 

[stopcrazypp]

Of course, $100M sounds like a lot, but it depends on what the run size is. Tesla's plans are quite big. Even 200k/yr x 5yr = 1M, so it'd only take a $100 part to be a $100M contract.

Obviously a setback to have any supplier fail to deliver, but how much depends on the part.

I'm not sure about the auto industry, but in the computer/phone industry it's now common to have at least 2 suppliers if not 3 suppliers for the same part. In case one falls through, your production plans can still continue without a problem.

 

[boiler81]

Wow what a tough crowd.
I am committed to the M3 and was 15th in line to reserve one in my state.
However, if a major supplier contract gets canceled, regardless of reason, it's likely to cause an impact to cost, schedule, or quality. Not that Tesla couldn't recover and maintain schedule, but not without some impact (cost or quality).
At this point I thing it premature to assume production delay, but at the same time its certainly not good news.

 

[MP3Mike]

However, if a major supplier contract gets canceled, regardless of reason, it's likely to cause an impact to cost, schedule, or quality. Not that Tesla couldn't recover and maintain schedule, but not without some impact (cost or quality).
At this point I thing it premature to assume production delay, but at the same time its certainly not good news.

Why? Tesla could have sourced the same part from two, or more vendors, and now that one failed they could just ask the other vendor(s) to step up and make more. Or add another vendor. Increasing their order size from another vendor could even lower their per unit pricing.

They whole point of the July, 2017 deadline was to identify issues, like this one, and have them resolved before it was too late and would impact the production ramp up.

 

[Drone Flyer]

The updated car will be called the Model T3 or in software update parlance, Model 3.132785479.

 

[stopcrazypp]

Why? Tesla could have sourced the same part from two, or more vendors, and now that one failed they could just ask the other vendor(s) to step up and make more. Or add another vendor. Increasing their order size from another vendor could even lower their per unit pricing.

They whole point of the July, 2017 deadline was to identify issues, like this one, and have them resolved before it was too late and would impact the production ramp up.

Right, the July 2017 supplier deadline was designed to allow stuff like this to happen and still allow a plan B. I think they learned their lesson from Model X to not expect every supplier to follow through.