Tesla pushes suppliers to produce parts outside of China and Taiwan

Move comes amid rising geopolitical tensions and competition from Chinese rivals

20240522 Tesla factory in Shanghai

A Tesla factory in Shanghai. China is a major market and production hub for the U.S. EV maker. © Reuters

LAULY LI and CHENG TING-FANG, Nikkei Asia tech correspondents

TAIPEI -- Tesla has told suppliers to start building components and parts outside of both China and Taiwan by as early as next year due to rising geopolitical uncertainties, Nikkei Asia has learned.

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, according to six supply chain executives with direct knowledge of the matter.

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