Chowdhry: Everyone Wants To Be A Tesla Supplier

There was once a time when Elon Musk had a tough time getting top auto suppliers to give him the time of day. A lot has changed for Tesla Motors Inc (NASDAQ: TSLA) since 2009.

According to Global Equities Research’s Trip Chowdhry, every major auto supplier is now bending over backwards to win Tesla’s business.

“Elon would personally go and meet the suppliers, and it was difficult for even Elon in 2009 to get the meetings with the Tier 1 and Tier 2 suppliers,” an industry expert recently told Chowdhry.

“However, today…every supplier wants to get onto the Tesla bandwagon and is more than willing to work with TSLA on their aggressive time schedule and on their stringent specifications.”

Related Link: Bank Of America: Tesla's Stock Headed To $155

The auto expert sees similarities in the way suppliers view Tesla today and they way they saw Fiat Chrysler Automobiles NV (NYSE: FCAU)’s Dodge Viper back in the 1990s. Tesla’s cars, including the new Model 3, have so much trendy buzz that suppliers want the bragging rights associated with a prestigious Tesla partnership.

Tesla produced only about 50,000 vehicles, but announced earlier this year that it expects production will ramp to 500,000 units by 2018.

Tesla’s current group of suppliers includes Magna International, Inc. (USA) (NYSE: MGA), Shiloh Industries, Inc. (NASDAQ: SHLO), A Shulman Inc (NASDAQ: SHLM) and AK Steel Holding Corporation (NYSE: AKS).

Disclosure: The author holds no position in the stocks mentioned.