Tesla has further solidified its position in China by partnering with over 400 local tier-1 suppliers. This strategic move enables the company to source more than 95% of its components from local suppliers, supporting its efficient production process in the Shanghai factory.
Key Developments:
- Over 60 local suppliers have become part of Tesla’s global supply chain.
- The Shanghai factory, operational since 2019, remains the first wholly foreign-owned auto manufacturing project in China.
- Tesla’s focus on local sourcing underscores its commitment to expanding its footprint in China.
Implications for the Company:
- Tesla’s efforts to strengthen its China operations come as the company continues to grow and expand its presence in the global market.
- The partnership with local suppliers is expected to contribute to the company’s long-term success in the region.
Reaction to California’s Proposal:
- CEO Elon Musk recently slammed California’s proposal to exclude Tesla vehicles from consumer rebates, calling it an “insane” decision.
- Musk expressed concern that the move would hurt jobs in California, highlighting the importance of supporting local industries.
Price Action:
- Tesla’s shares (TSLA) are trading higher by 1.33% to $343.52.
- The company’s stock performance reflects its ongoing efforts to expand its operations and strengthen its presence in key markets.
About the Shanghai Factory:
- The Shanghai factory began construction in January 2019 and became operational by the end of that year.
- The factory remains the first wholly foreign-owned auto manufacturing project in China, marking a significant milestone for Tesla’s expansion in the region.