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Tesla Urges Suppliers to Move Production Beyond China and Taiwan

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Tesla has told suppliers to start building components and parts outside of China and Taiwan by as early as next year due to rising geopolitical uncertainties, according to a report by Nikkei on May 23, 2024. The goal is to secure alternative supply sources to prevent supply chain disruptions due to heightened geopolitical risks.

Six supply chain executives with direct knowledge of the matter, say suppliers making components such as printed circuit boards, displays, and electronics control unit systems for use in Tesla models sold outside of China, have received the request from the American EV maker.

One Taiwan-based supplier said Tesla has asked it to produce parts outside of China and Taiwan and hopes to make this happen through a new project in 2025.

Tesla has also discussed the matter with other Asian suppliers from Japan, South Korea, and elsewhere, sources said. It is interpreted that this movement is taking place because Taiwan is also considered China.

Nikkei said, however, that there was no official statement from Tesla.

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