Tesla To Phase Out Chinese Made Parts For US Cars Within Two Years - CleanTechnica

Tesla plans to phase out the use of Chinese-made parts for its U.S.-market vehicles within the next two years, reflecting broader shifts in supply chain strategies amid ongoing U.S.-China trade tensions and pandemic-related disruptions. The company has quietly informed suppliers to source parts from outside China, aiming to mitigate risks associated with tariffs, trade uncertainties, and geopolitical conflicts. Tesla has also encouraged Chinese suppliers to establish operations in Mexico and Southeast Asia to circumvent tariffs directly targeting China. Additionally, Tesla is transitioning its lithium-iron-phosphate battery production from China to Nevada starting next year. This move aligns with a wider trend among U.S. automakers, as General Motors (GM) is similarly working to reduce reliance on Chinese parts by instructing suppliers to eliminate Chinese content by 2027. GM is focusing on strengthening its North American supply chain and is open to sourcing from countries outside China, Russia, and Venezuela to enhance supply chain resilience. Both Tesla and GM’s strategies underscore a growing emphasis on supply chain diversification