China-made EV parts reportedly in Tesla’s crosshairs – but is a total ‘de-risk’ feasible?
Tesla’s reported strategy may have some success but China’s manufacturing edge makes broader decoupling impractical, analysts say
Curt Hopkins, CEO of automotive investment platform MCQ Markets in Miami, said Tesla appeared to be “developing a completely dual strategy, where in the US they’re going to de-China, diversify and make sure they continue to have access to government incentives”.
“And then in China, it [Tesla] is just fully localised, relying completely on Chinese battery and component system technology. They’re going to have two entirely different supply chain strategies for the cars.”
According to Tesla Mag, the EV giant plans to issue requirements forcing suppliers to exclude Chinese components from vehicles built in the US. A complete phase-out is anticipated within the next one or two years to mitigate the impact of tariffs and trade disputes.
Tesla’s relatively mature manufacturing capacity and “established strategy” could “probably create this divide”, Hopkins said, noting that it would have to reshore everything and scale up battery capacity.