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Tesla Said to Tell Suppliers to Drop China-Made Parts for U.S. Cars

The company targets a one-to-two-year transition to navigate tariff swings, component risks, and pricing uncertainty.

A person sits in a Tesla Cybercab outside the Nasdaq Market site in New York City, U.S., October 27, 2025.  REUTERS/Brendan McDermid/File Photo

Overview

  • The Wall Street Journal reported that Tesla instructed suppliers to avoid China-made components for vehicles built in the United States.
  • People familiar with the matter said some parts have already been replaced and the remaining switches are planned over the next one to two years.
  • Reuters said it could not immediately verify the report and noted Tesla did not respond to a request for comment outside regular hours.
  • Executives have grappled with fluctuating U.S.–China tariffs that complicate pricing, and Tesla has been increasing North American sourcing for two years.
  • China Passenger Car Association data show October sales of China-made Teslas fell 9.9% year over year and Shanghai output and exports dropped 32.3% from September, as General Motors separately asked thousands of suppliers to remove China content.