Tesla China’s executive team is seemingly working overtime to counter a report that the manufacturer is aiming to reduce their reliance on China.
The WSJ report, which sent shockwaves through the 400 or so Chinese-based Tesla suppliers, claimed that Tesla was looking to lessen their supply chain’s reliance on China, given ongoing trade issues and price-related uncertainty due to tariffs.
To calm some of the fears, Tesla China’s VP of External Relations took to Weibo and posted an indirect response to the article. She noted:
Whether in the US, China, or Europe, Tesla uses the same rigorous and objective standards in selecting suppliers across all its manufacturing sites worldwide. The selections are based on product quality, total cost, technological strength and ability to keep long-term supply.
Tesla is not alone in considering moving part and component manufacturing to other areas of the globe. GM announced earlier this month that it would be pivoting away from Chinese manufacturing for its tier 2 and tier 3 suppliers.
The move will take years, but it did signal that there is an appetite, at least among American automakers, to look elsewhere, such as Mexico, Canada and the EU for component and part suppliers.
For GM, they are hoping to complete the pivot from China to its North American supply chain by 2027.
