Tesla Might Team With Magna For Model 3 Production In Europe Fresh from the rumor mill comes speculation Tesla might contract with Magna for Model 3 production in Europe. While it may or may not be true, it strikes me as a good idea. Using Magna would require a lot less expenditure, and transfer a lot of issues (HR, etc) and some amount of risk. Already, Magna has the contract to build the Jaguar i-Pace, so you'd expect they could manage good quality control. What's the downside for Tesla? I'm not seeing any, but maybe I have blinders on.