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Tesla Tells Suppliers to Drop China-Made Parts for U.S. Cars Within Two Years

The policy responds to tariff uncertainty that has pushed U.S. automakers to shift sourcing closer to home.

Overview

  • The Wall Street Journal reports Tesla has told suppliers to exclude China-made components from vehicles built for the U.S. market.
  • People familiar say some parts have already been swapped and the company aims to complete the switch in one to two years.
  • Executives cite tariff volatility and trade risks that have muddled pricing plans after two years of increasing North American sourcing.
  • General Motors this week issued a similar directive to thousands of suppliers to strip China-origin parts from their supply chains.
  • Industry data show Tesla’s China-made EV sales fell 9.9% in October to 61,497, with Shanghai output down 32.3% from September.