Tesla Cuts Parts Orders For Model 3 — What It Really Means for Tesla and Reservation Holders

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Early on Friday morning, Reuters ran a news story detailing how Tesla had reduced its December transmission parts order from Taiwanese specialist Hota by forty percent.

In addition to impacting the shares of Hota (which fell nearly nine percent after the news) and the shares of Tesla (which continued the downward trend of the past fortnight), the news has caused concern among Tesla fans and industry analysts that Tesla will take far longer to deliver the nearly half a million Tesla Model 3 cars that are currently reserved by customers.

But what’s really going on? And are there potentially other explanations for Tesla’s actions?

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