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Pegatron sees increased orders for Tesla Model 3 parts in Q4, hinting at aggressive 2021 ramp

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Taiwanese electronics manufacturing company Pegatron has seen increased orders for the Model 3’s central control system from Tesla this fourth quarter. Such a move hints at Tesla’s ambitious Model 3 goals for 2021, a year that may very well see the company producing 1 million vehicles per year for the first time. 

The update was related to DIGITIMES by sources familiar with the electric car maker’s supply chain. As noted by the publication, the global demand for battery-electric cars like Tesla’s lineup of vehicles is expected to grow further in 2021. And amidst this growth, Tesla, an industry leader, would likely continue expanding its production capabilities to fulfill demand. 

According to the publication’s sources, Tesla has clear order visibility for the first quarter of 2021, which should benefit Pegatron’s business with the electric car maker. The sources further noted that Pegatron is currently assessing plans to construct dedicated facilities in the United States that are specifically designed to serve Tesla. 

Pegatron chairman T.H. Tung has adopted an optimistic stance on the electric vehicle segment, especially as regions like Europe have announced aggressive goals aimed at retiring the internal combustion engine. With these initiatives in mind, the demand for electric cars is only bound to increase. 

The Model 3 is arguably one of the world’s best-selling electric vehicle, with Tesla estimated to have sold about 261,000 units of the electric car to date. This number is expected to increase further in the coming year as well, with Gigafactory Shanghai alone aiming to produce 300,000 Model 3 in 2021. Tesla would likely be aiming to produce and possibly deliver 1 million vehicles in 2021, and a good portion of this number would likely be the Model 3, as well as its sibling, the Model Y.

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Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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Tesla takes first step in sunsetting Model S and X with drastic move

Tesla won’t be taking custom orders of the Model S or Model X in Europe any longer.

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Credit: @supergeek18 | X

Tesla has seemingly taken the first step in sunsetting two of its older vehicles, the Model S and Model X, by ending international orders.

The flagship sedan and SUV from Tesla are the two oldest cars in the company’s lineup. They account for a very small portion of overall sales, and several years ago, CEO Elon Musk admitted that Tesla only continues to build and sell them due to “sentimental reasons.”

Earlier this year, there were calls for Tesla to end the production of the two cars, but Lars Moravy said that the Model S and Model X were due to get some love later in 2025. That happened, but the changes were extremely minor.

Tesla launches new Model S and Model X, and the changes are slim

Some took this as an indication that Tesla has kind of moved on from the Model S and Model X. A handful of people seemed to think Tesla would overhaul the vehicles substantially, but the changes were extremely minor and included only a few real adjustments.

In Europe, customers are unable to even put a new order in on a Model S or Model X.

We noticed earlier today that Tesla pressing the ‘Order’ button on either of the flagship vehicles takes you to local inventory, and not the Design Studio where you’d configure your custom build:

Tesla simply does not make enough Model S or Model X units to justify the expensive logistics process of shipping custom orders overseas. It almost seems as if they’re that they will essentially build a bunch of random configurations, send them overseas every few months, and let them sell before replenishing inventory.

Inversely, it could also mean Tesla is truly gearing up to sunset the vehicle altogether. It seems unlikely that the company will fade them out altogether in the next couple of years, but it could absolutely think about ending international orders because volume is so low.

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Energy

Tesla inks multi-billion-dollar deal with LG Energy Solution to avoid tariff pressure

Tesla has reportedly secured a sizable partnership with LGES for LFP cells, and there’s an extra positive out of it.

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Credit: Tesla

Tesla has reportedly inked a multi-billion-dollar deal with LG Energy Solution in an effort to avoid tariff pressure and domesticate more of its supply chain.

Reuters is reporting that Tesla and LGES, a South Korean battery supplier of the automaker, signed a $4.3 billion deal for energy storage system batteries. The cells are going to be manufactured by LGES at its U.S. factory located in Michigan, the report indicates. The batteries will be the lithium iron phosphate, or LFP, chemistry.

Tesla delivers 384,000 vehicles in Q2 2025, deploys 9.6 GWh in energy storage

It is a move Tesla is making to avoid buying cells and parts from overseas as the Trump White House continues to use tariffs to prioritize domestic manufacturing.

LGES announced earlier today that it had signed a $4.3 billion contract to supply LFP cells over three years to a company, but it did not identify the customer, nor did the company state whether the batteries would be used in automotive or energy storage applications.

The deal is advantageous for both companies. Tesla is going to alleviate its reliance on battery cells that are built out of the country, so it’s going to be able to take some financial pressure off itself.

For LGES, the company has reported that it has experienced slowed demand for its cells in terms of automotive applications. It planned to offset this demand lag with more projects involving the cells in energy storage projects. This has been helped by the need for these systems at data centers used for AI.

During the Q1 Earnings Call, Tesla CFO Vaibhav Taneja confirmed that the company’s energy division had been impacted by the need to source cells from China-based suppliers. He went on to say that the company would work on “securing additional supply chain from non-China-based suppliers.”

It seems as if Tesla has managed to secure some of this needed domestic supply chain.

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Lifestyle

Tesla brings perhaps the coolest interior feature to cars in latest update

Tesla adds on to the “fun” aspect of its vehicles.

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Credit: Tesla

Tesla has brought perhaps the coolest interior feature to its cars in a new update that is rolling out to vehicles now.

The feature will require a newer vehicle that has interior ambient lighting, which is present on the new Model S, Model X, Model 3 “Highland,” and Model Y “Juniper.” The Cybertruck also has ambient lighting strips throughout.

Tesla Model Y’s ambient lighting design changes revealed in leaked video

With the Version 2025.26+ Software Update, Tesla is rolling out a new “Sync Accent Lights w/ Music” feature, which is available on the Tesla Toybox:

To enable the feature, you’ll access the Toybox, choose “Light Sync,” and then choose “Sync Accent Lights w/ Music.”

Although it does not improve the performance of the vehicle, it is yet another example of Tesla making one of the coolest cars out there. This is truly a cool add-on that can be used to impress your friends and family.

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