Tesla Model 3 and Model Y in the parking lot of a showroom, PHOTO: Jonathan Weiss / Alamy / Profimedia
Tesla is now asking suppliers to stop using parts made in China in the production of cars destined for the American market, according to the Wall Street Journal.
The car manufacturer led by Elon Musk and its suppliers have already replaced some components from China and intends to replace all others with parts manufactured outside of China in the next year or two, according to sources cited by the publication, writes News.ro.
Tesla did not immediately respond to Reuters' after-hours request for comment, and Reuters could not independently verify the information.
Industry executives have struggled with fluctuating tariffs from the US-China trade dispute, complicating pricing strategies, the WSJ added.
Reuters reported in April that Tesla had increased its purchases of North American components for its US factories over the past two years amid tariff threats.
Earlier in the month, data from the China Association of Automobile Manufacturers showed that Tesla's sales of electric vehicles made in China fell 9.9 percent in October from a year earlier, after rising 2.8 percent in September. Model 3 and Model Y production at Tesla's Shanghai factory, including exports, fell 32.3 percent from September.
Tensions between the U.S. and China have put the auto industry in a state of continued crisis in 2025. U.S. President Donald Trump's volatile tariffs and fears of possible rare-earth and chip bottlenecks have led manufacturers to reassess their reliance on China, a key supplier of parts and raw materials.
This week, General Motors also asked thousands of suppliers to remove Chinese-made components from their supply chains.
