"As per the WSJ report, the shift reportedly came amidst escalating tariff uncertainties between Washington and Beijing. Citing people reportedly familiar with the matter, the publication claimed that Tesla has already swapped out several China-made components, aiming to complete the transition within the next two years. The publication also claimed that Tesla has been reducing its reliance on China-based suppliers since the pandemic disrupted supply chains."
"The company has quietly increased North American sourcing over the past two years as tariff concerns have intensified. If accurate, Tesla would likely end up with vehicles that are even more locally sourced than they are today. It would remain to be seen, however, if a change in suppliers for its US-made vehicles would result in price adjustments for cars like the Model 3 and Model Y."
"Tesla is not alone in reevaluating its dependence on China. Auto executives across the automotive industry have been in rapid-response mode amid shifting trade policies, chip supply anxiety, and concerns over rare-earth materials. Fluctuating tariffs between the United States and China during President Donald Trump's current term have made pricing strategies quite unpredictable as well, as noted in a Reuters report."
Tesla has started directing suppliers to eliminate China-made components from vehicles built in the United States and aims to complete the transition within two years. The company has already swapped out several China-made components and has increased North American sourcing over the past two years. The shift responds to escalating tariff uncertainties between Washington and Beijing and pandemic-related supply-chain disruptions. A supplier change could make U.S.-built vehicles more locally sourced, though effects on prices for the Model 3 and Model Y remain uncertain. Automakers across the industry, including General Motors and Stellantis, are issuing similar directives amid trade-policy, chip-supply and rare-earth material concerns.
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