Hankook Tire has been chosen as a main tire supplier for Tesla’s Model 3,according to media reports published on May 12. MS Autotech, which uses hotstamping technology to manufacture automotive bodies, disclosed that it has wona deal to supply molding for 31parts of the Model 3.

The Model 3, which boasts an extended range, low price, and innovative design,reportedly attracted 40,000pre-orders in just three weeks. As Tesla has noexperience in mass production or cost cutting, it is likely to seek partnerships withmultiple parts makers that can compete on quality and price and have massproductioncapability.

Parts vendors for the Model 3may initially suffer margin squeeze as the carmakerpressures them for aggressive cost cuts—the vehicle’s price tag is just half that ofthe Model S. Yet, based on their exclusive deals, they should be able to build trackrecords, diversify clients, and reach economies of scale ahead of rivals—for whichthey will deserve valuation premiums. We like Mando, Hanon Systems, S&T Motiv,and Woori Industrial for their track records in EVs and their diverse client bases.

中国最大钣金展-锻压展-2017第十八届广州国际钣金、锻压工业展览会-巨浪展览- The 18th China（Guangzhou）Int’l Sheet metal machinery,Forging, Stamping and Setting Equipment Exhibition