May 09, 2024

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[THE INVESTOR] Mando, a Korean parts maker that supplies parts for Tesla, is expected to benefit from the iconic US EV maker’s decision to kick off Model 3 production this week.

“Mando is already supplying key parts to the US EV maker,” said Yoo Ji-woong, an analyst at eBest Investment & Securities in a report on July 5. “As Mando is additionally sourcing parts to the carmaker’s new model, its (profit) is expected to grow in the fourth quarter,” he said, referring to the Model 3.

He added Mando will be able to clinch more deals of its semi-autonomous technology Advanced Drivers Assistant System, with overseas carmakers in the latter half of the year as well.

Mando, a Halla Group auto parts company, currently supplies steering racks for Tesla Model S sedans, which is also on sale in Korea. 

Tesla Model 3

It will also be providing parts for Tesla’s first mass-market car Model 3, according to sources. But the local parts maker has been denying the claim, citing a nondisclosure agreement.

A Mando spokesperson was immediately unavailable to comment on the matter.

Mando has been ramping up R&D in future car technologies. It recently opened a new office in Silicon Valley, in a move seen to seek more partnership with local tech firms, startups and carmakers in the all-important US market.

Earlier this week Tesla CEO Elon Musk tweeted the carmaker will start producing much-anticipated Model 3 vehicles on July 7 and deliver the first batch on July 28. Musk expects production of Model 3 to grow exponentially and reach 20,000 units per month in December.

Local parts makers that have clinched deal with Tesla, including MS Autotech, Sungchang Autotech and Yeong Hwa Metal, have witnessed stocks increase.

By Ahn Sung-mi (sahn@heraldcorp.com)