Reuters

TAIPEI (Reuters) - Luxury electric carmaker Tesla <TSLA.O> plans to slash by 40 percent its orders for parts for the new Model 3 mass-market sedan from Taiwanese auto component maker Hota Industrial Mfg. Co <1536.TW> from December, according to a media report.

 

Shares of the parts maker dropped nearly 9 percent after the Economic Daily News reported, citing Hota Chairman Shen Kuo-jung, that Tesla had told the firm orders would be cut to 3,000 sets per week from 5,000 sets starting December, due to a "bottleneck" in the production of Model 3.

 

Tesla may delay scheduled weekly shipments of 10,000 parts in March by a few weeks until May or June, the report added.

 

Hota, which makes gears and axles for vehicles, and Tesla did not immediately respond to a request for comment.

 

Earlier this month, Tesla said production bottlenecks had left the company behind its planned ramp-up for the new Model 3 sedan. It began production of the model in July.

Hota shares were down 7.6 percent at 0530 GMT.

(Reporting by Jess Macy Yu, Editing by Miyoung Kim and Himani Sarkar)