Germany’s Infineon to supply parts for Tesla Model 3

German chipmaker Infineon has been selected to supply parts for Tesla Inc.’s upcoming Model 3 electric car, which is currently ramping up for mass production in 2018.

Infineon is a well-known supplier of chips that are used to control batteries and motors in nearly 80 per cent of the world's top selling e-vehicles.

Confirming the contract, Chief Executive Officer Reinhard Ploss said, “We do not comment on the individual models, but we will also be present in Model 3.”

Ploss announced the contract just after the company reported third-quarter operating profit, which slightly surpassed analysts’ consensus forecast.

The Tesla Model 3 costs $35,000 in the United States, and it has the potential to notably outsell the $60,000 Model S, which is currently he world’s top-selling electric car.

Tesla has already received more than 500,000 reservations for the Model 3 e-car. Customers who place orders now can expect to receive the eagerly-awaited e-vehicle by the end of 2018.