A local business newspaper reported that POSCO would supply its automotive steel sheets for Tesla's Model 3. However, the newspaper has recently retracted the report.
The newspaper said: “POSCO will supply steel sheets to Tesla that leads the electric car race. According to industry sources, POSCO has agreed to supply steel sheets for Tesla's Model 3, slated for launch at the end of next year.”
Korean bloggers became jubilant over the news. Blogs dedicated to Tesla were filled with posts welcoming the use of Korean parts in Tesla's Model 3.
When the report was taken down, bloggers reacted. A blogger hissed, “The report did not exactly mention that POSCO and Tesla had actually signed a supply contract. They may have tried to give their company's stock price a manipulative boost.”
POSCO said the newspaper carried a “false report” and had to retract the report. According to industry sources, POSCO is pushing to supply its steel sheets to Tesla. Given POSCO’s explanation about the incident, the newspaper jumped the gun and the deal is not a fait accompli, yet.
However, when false reports about a company are carried, the company normally refutes the reports and issue explanations. It is rare for a newspaper to delete its report voluntarily.
That’s why industry insiders suspect that POSCO has some internal issues. An industry insider said: “Many say that POSCO is overreacting while pushing to supply to Tesla. POSCO has recently come under heavy fire from the media for committing various kinds of illegalities. Thus, some say POSCO is trying hard to play it safe.”