Tesla is now requiring its suppliers to exclude China-made components in the manufacturing of its cars in the United States, reports Reuters. The Elon Musk-led automaker and its suppliers have already replaced some China-made components and aim 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.
Executives have struggled with fluctuating tariffs in the US-China trade dispute, complicating pricing strategies, the Journal added. Tesla has been increasing North American sourcing for its US factories for two years amid tariff threats, Reuters reported in April.
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.