News

LG Innotek and Samsung are bidding for Tesla camera module orders: report

Credit: Andres GE

Recent reports from South Korean media outlets have suggested that companies like LG Innotek and Samsung Electro-Mechanics are currently competing for a supply contract for Tesla cameras. Citing industry sources, Korean tech publication TheElec noted that the aspiring companies are currently participating in a bidding program for Tesla’s camera modules. 

LG Innotek is already playing a notable role as one of Tesla’s camera suppliers, with reports emerging earlier this month that the company had secured a 1 trillion won ($840 million) contract to provide cameras for vehicles like the Model 3 and Model Y, among others. Considering that the EV maker is looking to raise its vehicle production and delivery capabilities this 2022, however, Tesla has a great need to acquire a substantial number of cameras in the short term. 

The items that are reportedly subject to the recent bidding process include camera modules for the Tesla Model S sedan, Model X SUV, Model 3 sedan, Model Y crossover, and yet-to-be-released vehicles such as the Cybertruck and the Tesla Semi. With Tesla expected to bid for at least this year and next year’s production volume, the total contract size that companies like Samsung Electro-Mechanics could secure may be substantial. The bidding process is reportedly poised to end within Q1 2022. 

Tesla’s rise as a mainstream carmaker could present a notable opportunity for companies like Samsung Electro-Mechanics and fellow camera-makers from countries such as Taiwan. Until last year, Tesla camera module supply was said to be 60-70% LG Innotek and 30-40% Samsung Electro-Mechanics, taking into account the quantity and price of the camera modules. Samsung Electro-Mechanics could see its share increase to ~50% depending on the results of the bidding process, according to industry observers. 

Interestingly enough, the South Korean tech publication also mentioned a potential delivery figure of 1.5-2 million units for Tesla this year. This estimate is quite in line with the current expectations of some of Tesla’s most ardent bulls. Analyst Pierre Ferragu, for one, noted that a 1.5-2 million delivery estimate for 2022 aligns with New Street Research’s expectation of >1.6 million vehicles delivered this year. 

Don’t hesitate to contact us with news tips. Just send a message to simon@teslarati.com to give us a heads up.

LG Innotek and Samsung are bidding for Tesla camera module orders: report
To Top