Tesla’s Shanghai Gigafactory remains a key export hub, with Model 3 and refreshed Model Y achieving over 95% localization.
On November 26, after multiple media outlets reported that Tesla was asking suppliers to exclude China-made parts from manufacturing operations in North America, Tesla Global Vice President Grace Tao issued a response on social media.
Tao stated on her personal Weibo account that Tesla applies the same selection standards to suppliers across all its global production sites, and that the country of origin or geographic location of a supplier does not constitute an exclusionary condition.
Tao emphasized that whether targeting the United States, China or Europe, Tesla’s supply chain strategy is consistently centered on product quality, total cost, technical maturity, and long-term delivery continuity.
Regarding the China supply chain, Tao noted that Tesla’s cost and efficiency advantages in the Chinese market stem from the production capacity of the Shanghai Gigafactory and the strength of the Chinese manufacturing ecosystem.
Tesla currently works with more than 400 partners in China, and more than 60 of them have entered Tesla’s global procurement system.
Earlier, foreign media reports claimed that Tesla was requiring suppliers to avoid using China-made components in vehicles produced in the United States.
The reports said Tesla and suppliers had already replaced some China-made components, and planned to replace all remaining parts with non-China alternatives over the next one to two years.
The Shanghai Gigafactory remains one of Tesla’s most important export centers, supporting the expansion of its global EV business.
Model 3 and the refreshed Model Y produced there have achieved more than 95% parts localization, with automation exceeding 95%, and a completed vehicle rolling off the line every 30 seconds.
According to data from the China Passenger Car Association, Shanghai delivered 61,500 units in October, including 35,500 units for export.
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