Tesla Demands Abandonment of Chinese Components for Car Assembly in the USA

The company intends to fully switch to suppliers outside of China in the next two years

Tesla is tightening its supply chain requirements and asking partners to stop using Chinese-made parts when producing cars for the American market. According to the Wall Street Journal, Elon Musk's company has already begun replacing individual components and expects to fully switch to alternative sources outside of China within the next one to two years.

Sources at the newspaper note that manufacturers are having to adapt to fluctuating tariffs amid the ongoing trade conflict between Washington and Beijing, which complicates the calculation of cost and final prices for cars. Tesla has been increasing purchases in North America for two years, trying to reduce the risks of possible restrictions.

There have been no official comments from the company, and Reuters has not yet been able to confirm the data. Meanwhile, October sales of Tesla electric vehicles produced in China fell by almost 10% year-on-year to 61,497 vehicles, a reversal after growth in September.

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