thermometer placement

Well, heat index of 103 here today, and the pit temp shows 105. The thermometer is a tru-tel and is within +/- 2 degrees...

As for your factory thermometer, it's probably not accurate, they seldom are. You'll be able to smoke fish for sure, but no cold smoking for you until winter comes back around.

About that shade, it's recommended regardless of pit temps, gotta stay comfortable while you tend the fire.

Mikey, you don't say where you're located, but I would guess somewhere in the southwest US.  An air temperature of 110 can easily result in a temp of 130 in an unheated smoker.  My offset smoker, painted flat black, indicated 130 with an air temp of ~90 without any fire.  It's a function of black body physics.  Without getting into the details, consider a black car parked in the sun with the windows closed.  It will be hot inside.  A white car will be somewhat cooler, but still hotter than the outside temp.  Theoretically, only objects that reflect ALL the light that reaches them will be the same temp as the air temp.  But perfect reflectors are only theoretical and don't exist in our world.  So yes, 130 in your smoker is very possible.  Paint it black and it will be even hotter.