Tesla says no to Chinese components for cars made in the US

VTV.vn - Electric car company Tesla is asking suppliers to exclude components made in China from the car production process in the US.

A Tesla store in San Mateo, California, USA. Photo: THX/TTXVN

It's a fresh example of the consequences of deepening geopolitical tensions between the US and China.

The electric carmaker decided earlier this year to stop using China-based suppliers for Tesla models built in the United States, according to people familiar with the situation. Tesla and its suppliers have replaced some Chinese-made components with parts made elsewhere. Tesla is aiming to switch all remaining components to ones made outside of China in the next year or two, the sources added.

Tesla has been trying to reduce its reliance on China since the Covid-19 pandemic disrupted the flow of goods, according to people familiar with the matter. Tesla has worked with Chinese suppliers — including those that make seat covers and metal casings — to set up factories and warehouses in Mexico and Southeast Asia in recent years, and the strategy to move away from Chinese components accelerated this year after US President Donald Trump imposed tough tariffs on Chinese imports.

China is a major producer and exporter of auto parts—including chips and batteries—as well as materials used in cars. Many of these parts are cheaper thanks to China’s massive scale of production, lower costs, and a weak currency.

The US is Tesla’s biggest market. In China, the company has its main factory in Shanghai, using mainly components made there.

Tesla’s strategy is the latest example of how trade and geopolitical tensions are driving a decoupling of the world’s two largest economies and redrawing global supply chains. Many U.S. companies are looking to remove Chinese-made components or manufacture products for the U.S. market outside of China. Chinese tech companies, in turn, are removing American components and technology from their supply chains.

Source: https://vtv.vn/tesla-noi-khong-voi-linh-kien-trung-quoc-cho-xe-san-xuat-tai-my-100251115193852359.htm