ALBAWABA - Tesla announced that its US-made cars will be completely free of Chinese components.
The decision is considered a historic move and a strategic shift that underscores the widening technological divide between Washington and Beijing and signals a major reshaping of the global electric vehicle industry amid all the sanctions and conflicts between the two countries.
According to The Wall Street Journal, the company has already begun replacing Chinese-made parts with components from alternative suppliers and plans to complete the transition within one to two years upcoming years.
According to experts, Tesla began reducing its reliance on China during the COVID-19 pandemic, when logistical disruptions slowed the flow of Chinese components to its US factories. The shift accelerated after Washington imposed steep tariffs and sanctions on Chinese imports later on.
China begun replacing Chinese-made parts with components from alternative suppliers and plans to complete the transition within one to two years upcoming years. (AFP)
However, China is being dominant in the market and overall industry, mainly in LFP batteries, semiconductors, and other essential raw materials.
Notably, Tesla has begun producing LFP units in-house at its Nevada energy storage facility, with plans to expand output in the first quarter of 2026. This shift follows Tesla’s decision to stop using Chinese-made batteries in its US vehicles due to high tariffs and the loss of eligibility for key federal tax incentives.
