According to etnews, LG Innotek will provide Tesla with cameras worth more than 1 trillion won, and the supply contract will be completed and mass production will begin in the first quarter. It is understood that LG Innotek’s cameras will be installed on Tesla’s Model Y and Model 3 for North American and European markets, as well as the upcoming electric truck semi.
The report pointed out that Tesla will begin operating its first local Gigafactory in Austin, Texas this month. As Tesla operates its fifth production site, it is looking to diversify its supply of key components for electric vehicles, with the company ordering large parts ahead of the start of production at the Austin Gigafactory.
Tesla has previously ordered cameras from China and the United States, but it has shown great concern for South Korean companies due to the impact of the Sino-US trade war. Last year, Tesla signed a 490 billion won camera module supply contract with Samsung Electro-Mechanics.
LG Innotek supplied Tesla for the first time last year, which means that it passed Tesla’s reliability test, but last year’s supply was only tens of billions of won. Once this year’s contract is completed, the transaction size will be the same as last year’s. 10 times, which will be a huge benefit to the company’s performance.
In addition, the report pointed out that if the supply is completed within the first quarter, LG Innotek will become Tesla’s core parts supplier. Considering the distance to Tesla’s Austin factory, production is expected to take place at LG Innotek’s Mexico factory. We cannot confirm the availability of Tesla cameras, said an executive at LG Innotek.