Following General Motors, another automaker has banned the use of Chinese parts!
According to a November 15 report by The Wall Street Journal citing sources, U.S. electric vehicle manufacturer Tesla has demanded its suppliers phase out Chinese-made parts in its U.S. vehicle production—the latest sign of escalating geopolitical tensions between the United States and China. “Tesla aims to transition entirely to parts manufactured outside China within the next year or two.”
According to sources cited by the newspaper, Tesla decided earlier this year to cease collaborating with Chinese suppliers on the production of its U.S.-made vehicles. Tesla and its suppliers have already replaced some Chinese-made components with parts manufactured in other countries.
The Wall Street Journal also noted that since supply chain disruptions in China during the COVID-19 pandemic, Tesla has been working to reduce its reliance on Chinese parts for U.S.-produced vehicles and has encouraged Chinese suppliers to establish manufacturing facilities in locations such as Mexico.
But insiders say Tesla has accelerated this strategy of phasing out Chinese components this year as U.S. President Trump imposed steep tariffs on Chinese imports.
President Trump's intermittent tariffs, along with industry fears over potential rare earth bottlenecks and computer chip shortages, have prompted U.S. automakers to reevaluate their supply relationships with China—long a key source of automotive parts and raw materials.
Earlier this week, General Motors instructed thousands of suppliers to remove Chinese parts from their supply chains. Sources indicate the automaker has set a 2027 deadline for some suppliers to end their sourcing relationships with China.