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WSJ: Tesla Orders Suppliers to Drop China-Made Parts From U.S.-Built Cars

The reported shift reflects tariff uncertainty that has pushed Tesla to accelerate non‑China sourcing within one to two years.

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, citing people familiar with the matter, reports Tesla has begun swapping out China-sourced components for U.S. factories and intends to replace the rest within one to two years.
  • Tesla did not immediately respond to requests for comment, and Reuters said it could not independently verify the report.
  • General Motors this week told thousands of suppliers to remove China-origin components from their supply chains, indicating a wider industry realignment.
  • China Passenger Car Association data show Tesla’s China-made EV sales fell 9.9% in October to 61,497 units, while Shanghai output of the Model 3 and Model Y dropped 32.3% from September.
  • Tesla has increased North American sourcing over the past two years as tariff swings, rare‑earth restrictions, and chip supply concerns heightened the need to reduce exposure to China.