The Elon Musk-led automaker and its suppliers have already replaced some China-made components with parts made elsewhere. Tesla is aiming to switch all other components to those made outside of China in the next year or two, the report said, citing people familiar with the situation.
Tesla executives have been battling with uncertainty brought by fluctuating tariff levels in the United States (US)- China trade battle, making it difficult for the carmaker to formulate a coherent pricing strategy, the Journal added. Tesla has for the past two years been increasing the proportion of parts sourced from North America for its US factories after mounting tariff threats, Reuters reported in April. Reuters could not immediately verify the report.
Earlier this month, data from the China Passenger Car Association showed that Tesla’s China-made electric vehicle sales fell 9.9% to 61 497 units in October from a year earlier, reversing a 2.8% increase in September. Sales of the US automaker’s Model 3 and Model Y vehicles made at its Shanghai “giga factory”, including exports to Europe, India and other markets, dropped 32.3% from September.
–Reuters–
