Overview
- Tesla has already swapped out some China-sourced components and is targeting completion of remaining substitutions within one to two years, according to reports.
- The company no longer uses Chinese LFP batteries in cars sold in the U.S. and expects a Nevada facility to begin producing LFP cells in the first quarter of 2026.
- General Motors has issued a parallel directive to thousands of suppliers to remove China-origin parts, signaling a broader supply-chain realignment across the industry.
- Executives cite disrupted pandemic-era logistics, new U.S. tariffs, Chinese export controls on rare-earth magnets, and chip supply tensions involving the Netherlands as key pressures.
- CPCA data show Tesla’s China-made EV sales fell 9.9% year over year in October, while Shanghai production of Model 3 and Model Y dropped 32.3% from September.