Tesla Shifts Supply Chain Strategy Amid U.S.-China Tariff Tensions
Tesla Inc. is restructuring its supply chain to reduce reliance on China-made components for vehicles produced in the U.S., according to a Wall Street Journal report. The MOVE comes as tariff volatility and geopolitical tensions force automakers to reassess manufacturing dependencies.
October sales of Tesla's China-made electric vehicles dropped 9.9%, while Shanghai factory output for Model 3 and Model Y saw a sharp decline from September levels. Suppliers are expected to complete the transition to non-China parts within one to two years.
Despite flat year-to-date performance, TSLA shares showed modest gains, closing at $404.35 with after-hours trading at $405.42. The company's long-term returns remain robust even as it navigates supply chain uncertainties.
