What Is the Supply Contract For?
According to various reports, South Korean company, Seo Yeon-Hwa has reportedly won a $225 million Cybertruck parts contract with Tesla. This is a large contract and is said to last until 2028. Whether that is the beginning of 2028 or the end is not clear yet.
The parts to be supplied are A-B, and C filler parts. Fillers are the columns that connect the vehicle body to the roof.
The filler in the middle of the front window and the side window is called the A filler (or front filler). The one in the middle of the front and back window is called the B filler (or center filler). The one between the back glass and the side glass is called the C filler (or rear filler). Some have said that these are pillars and not columns, but I don't see the big difference between the two.
There is also the website of this South Korean auto supplier that has more info. It looks like the Cybertruck will have Alcantara lining in the interior. This is similar to what is in the Cybertruck production alpha build.
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When is the Cybertruck Coming?
Some might ask why Tesla is making a Cybertruck parts deal with another company. After all, isn't Tesla supposed to be vertically integrated for everything?
Tesla absolutely cannot make every single part it needs for its vehicles. The Cybertruck is going to have a lot of different pieces on the inside and to make up the interior and wiring. Tesla is going to need to get parts from other companies to make a complete vehicle.
In the future, Tesla may be able to make its own parts for the Cybertruck, as it simplifies the production process. But, Tesla can't do this right now, as it only has so many employees to do the work on the Cybertruck.
This supply contract will last at least 4 years and may be renewed at the end of its term, depending on how satisfied Tesla is with the South Korean company. The Cybertruck is expected to start production and deliveries in Q3, 2023.
What do you think of this Cybertruck parts deal?
NEWS: South Korean company Seo Yeon-hwa has reportedly won a $225 million Cybetruck parts contract with Tesla to supply A-B, and C filler parts.The contract period for parts is reported to last until 2028.https://t.co/btnO6NJxRK— Sawyer Merritt (@SawyerMerritt) May 4, 2023
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Jeremy Johnson is a Tesla investor and supporter. He first invested in Tesla in 2017 after years of following Elon Musk and admiring his work ethic and intelligence. Since then, he's become a Tesla bull, covering anything about Tesla he can find, while also dabbling in other electric vehicle companies. Jeremy covers Tesla developments at Torque News. You can follow him on Twitter or LinkedIn to stay in touch and follow his Tesla news coverage on Torque News.