Elon Musk's Striking Directive for Tesla: End to Chinese Parts

Tesla Is Phasing Out Chinese-Made Parts

Tesla has issued new instructions to its suppliers to end the use of Chinese-made parts in the electric vehicles it produces in the U.S. Under the leadership of Elon Musk, the company aims to create a more independent manufacturing process in response to the effects of trade wars. According to information reported by the Wall Street Journal, some Chinese-made components have already been replaced with parts produced in alternative countries. Currently, this change is being implemented on only a few components, but it is planned to source all parts from outside China within one to two years.

Impact of Tariffs and Strategic Changes

The uncertainty of customs tariffs created by the trade war between the U.S. and China has made it difficult for Tesla to clarify its pricing policies. Over the past two years, the company aims to increase the sourcing of parts from North America. To better understand this situation, Tesla is refusing to limit its manufacturing facilities to only China as it had in the past.

Tesla's Sales in China Are Declining

However, the sales of vehicles produced by Tesla in China have shown a significant decline. According to data from the China Passenger Car Association, Tesla's vehicle sales in October fell by 9.9% compared to the same period last year, reaching 61,497 units. This figure contrasts with a 2.8% increase recorded in September. During the same period, sales of the Model 3 and Model Y vehicles produced at the Gigafactory in Shanghai decreased by 32.3% compared to September.

Restructuring Process in the Automotive Sector

Throughout 2025, geopolitical tensions between superpowers are expected to accelerate the restructuring in the automotive sector. Periodic customs tariffs implemented in the U.S., uncertainties in the supply of rare metals, and instability in chip supply require significant changes in global supply chains. Tesla's decision represents a new phase in the process of reducing dependence on China in the U.S. automotive sector. During this process, similar steps are anticipated from other major automotive manufacturers, such as General Motors.