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Tesla says it values China suppliers, does not exclude any by origin
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Tesla says it values China suppliers, does not exclude any by origin
Nov 25, 2025 11:49 PM

SHANGHAI, Nov 26 (Reuters) - A top Tesla China executive

said on Wednesday the U.S. automaker values the role of

China-based suppliers and does not exclude any on the basis of

country of origin or geographical location.

The remark by Grace Tao, on Chinese social media platform

Weibo, came after the Wall Street Journal said this month that

Tesla has been requiring suppliers to exclude China-made

components in its manufacture of cars in the United States.

"Whether in the United States, China or Europe, Tesla

applies the same strict and objective standards for selecting

suppliers across its global production facilities," Tao said.

"The country of origin or geographical source of the

supplier does not constitute an exclusionary criterion," added

Tao, who is Tesla's vice president charged with handling

government affairs and public relations in China.

She did not directly refer to the newspaper report.

Tesla's Shanghai factory achieved the lowest prices globally

for consumers in China to buy its Model 3 and Model Y with the

help of more than 400 domestic supplier, Tao said, adding that

more than 60 of them also supply Tesla globally.

Tesla has said it sources locally more than 95% of

the components in the China-made Model 3 and the refreshed

version of the Model Y. The Model 3 is sold from 235,500 yuan

($33,250) in China, versus $36,990 in the United States.

General Motors ( GM ) has told several thousand suppliers to

scrub their supply chains of parts from China, Reuters reported

in November, reflecting automakers' growing frustration over

geopolitical disruptions to operations.

($1=7.0822 yuan)

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