Tesla is tightening its supply chain strategy: The electric car manufacturer is apparently calling on suppliers to stop using components produced in China for US models.
• Tesla wants to make US production independent of Chinese components
• Suppliers will probably manufacture components outside of China in the future
• Tariffs and delivery risks accelerate the strategy
Tesla is tightening its course to decouple from Chinese supply chains. According to information from n-tv and people familiar with the process, the electric car manufacturer is increasingly asking its suppliers to stop using components manufactured in China for vehicles that are assembled in the USA. According to these insider information, the change in strategy was decided at the beginning of the year.
Risk minimization strategy: Tesla is looking for alternatives to China
The plan is clear: All parts still produced in China should be replaced within the next one or two years, according to several insiders according to n-tv. Some components have already been successfully relocated. The background to these efforts is Tesla’s goal to avoid disruptions in the flow of goods.
There were noticeable interruptions during the Corona pandemic as delivery routes from China were temporarily blocked. Tesla has therefore instructed its suppliers based in China to relocate production capacities to other locations – including production facilities in Mexico. The aim is to strengthen security of supply for the US market and build a more robust supply chain.
Higher tariffs accelerate the restructuring: trade conflict as a catalyst?
The economic policy framework creates additional pressure. According to n-tv, citing information from insiders, the change was significantly accelerated after US President Donald Trump imposed new, strict tariffs on Chinese imports. The fluctuating tariff rates in the trade dispute between the USA and China make it difficult for the company to develop a stable and reliable pricing strategy for the US market.
Some informants apparently described that these uncertainties had motivated Tesla managers to eliminate all potential cost drivers from China as quickly as possible. Dependence on Chinese suppliers could otherwise lead to significant price fluctuations for Tesla models. The group wants to avoid this risk.
What the changes mean for the auto industry
If Tesla implements its plans as announced, this will likely have a noticeable impact on the entire industry Electric car-Have supply chain. Industry observers expect other automakers to explore similar measures to guard against geopolitical risks. For suppliers, in turn, the demand for production locations outside of China becomes a strategic pressure point, but at the same time it also represents an opportunity to expand their production internationally.
Bettina Schneider / editorial team finanzen.net
By the way: Tesla and other US stocks can even be traded on finanzen.net ZERO until 11 p.m. (without order fees, plus spreads). Open a depot now for free and secure a new customer bonus!
Selected leveraged products on Tesla
With knock-outs, speculative investors can participate disproportionately in price movements. Simply select the lever you want and we will show you suitable open-end products on Tesla
The leverage must be between 2 and 20
Advertising
Image sources: Sergio Monti Photography / Shutterstock.com, Frontpage / Shutterstock.com