Post by : Badri Ariffin

Tesla is pushing a bold change: suppliers must avoid using China‑made parts in vehicles built for its U.S. market. The electric‑vehicle maker has already started replacing some China‑sourced components, and aims to fully eliminate them over the next year or two.

This move comes amid rising trade uncertainties between the U.S. and China, with fluctuating tariffs making it harder for Tesla to maintain stable pricing and supply strategies. Over the past two years, Tesla has steadily increased its reliance on North American‑made parts for cars produced in its U.S. plants, a shift that now appears to be accelerating.

The decision may also be influenced by a drop in Tesla’s China-made EV sales, which saw a year-over-year decline recently. Meanwhile, production at Tesla’s Shanghai factory — which makes key models like the Model 3 and Model Y — experienced a significant slowdown.

Tesla isn’t alone in this strategy. Other automakers are also asking their suppliers to phase out China-based parts, citing similar worries over geopolitical risk and supply‑chain resilience.

At its core, Tesla’s push reflects growing concern across the auto industry: how to reduce dependence on Chinese manufacturing without crippling operations. As trade tensions intensify, companies are rethinking where and how they build critical components — from batteries to electronic modules.

In short, Tesla is betting big on reshoring: not just for cost stability, but to safeguard its future in an uncertain global landscape.

#Business News #Economic