[Photo by Prometheus on Unsplash.com]
16 November, 2025 (Sunday) – By Yeojun Jung
Tesla has begun directing its suppliers to eliminate China-made components from vehicles built in the United States, according to a Wall Street Journal report cited by Teslarati.
The company has already replaced several China-origin parts and aims to complete the full transition within two years as tariff uncertainty between Washington and Beijing increases.
People familiar with the matter said Tesla has been moving toward more North American sourcing since pandemic disruptions exposed vulnerabilities in global supply chains.
Reuters reported that Tesla and its suppliers have already swapped some China-made parts and intend to finish the rest within one to two years.
Tesla did not respond to Reuters’ request for comment, and the report has not been independently verified.
Automakers across the industry have struggled with fluctuating tariffs in the U.S.-China trade dispute, which has made pricing decisions unpredictable.
Analysts say Tesla’s sourcing shift could further increase the percentage of U.S.-made components in models like the Model 3 and Model Y, though it is unclear if this will affect pricing.
Other automakers are moving in the same direction as concerns grow about trade policy changes, semiconductor supply, and access to rare-earth materials.
Throughout 2025, many car executives have been in “triage mode,” revising supply chains as the Trump administration’s shifting tariffs create new risks.
General Motors has issued a similar directive, instructing thousands of suppliers to remove components of Chinese origin from their systems.
Stellantis also announced strategies this year to avoid tariffs directed at China-made parts, reinforcing a broader trend across the automotive sector.
A report from 2024 noted that Tesla had previously asked suppliers of items like printed circuit boards and display systems to begin producing components outside of China and Taiwan.
Recent sales data show that Tesla’s China-made vehicle sales dropped 9.9 percent year-over-year in October, reversing a slight gain from the previous month.
Production at Tesla’s Shanghai factory also declined 32.3 percent from September, including both domestic output and exports.
Industry analysts expect Tesla to continue restructuring its supply chain as U.S. factories shift toward deeper localization.
The pace of the transition will likely depend on tariff developments, material availability, and broader geopolitical conditions.
Yeojun Jung
Grade 10
Chadwick International School
Written on November 16, 2025 (Sunday)
