There’s a certain poetic twist to the way Tesla handled the gossip around its supply-chain strategy this week — walking right up to the edge of a major supply-chain shake-up, then reaching out to reassure that it isn’t abandoning a long-standing partnership: that with its Chinese suppliers.
At the heart of the matter was a recent report claiming Tesla had begun instructing its vendors to avoid China-made components in cars built for the U.S. Critics and media alike seized on this as evidence that Tesla was quietly writing off China suppliers entirely, bowing to geopolitical pressure and tariff-driven supply-chain shifts.
Enter Grace Tao — Tesla’s Vice President for Government Affairs and Public Relations in China — who took to social media (on Weibo) to set the record straight. She made clear that Tesla does not exclude suppliers because they are based in China. According to her, the company applies the same “strict and objective standards” globally, regardless of a supplier’s origin. Supplier nationality simply isn’t in those standards.
Grace Tao pointed out the real breadth of Tesla’s China connection: more than 400 Chinese firms supply parts to Tesla’s Shanghai plant, and over 60 Chinese suppliers contribute to Tesla’s global operations — a testament to how deeply the automaker remains embedded in China’s industrial ecosystem.
The Shanghai factory — Gigafactory Shanghai — has long been at the center of this relationship. It builds cars using primarily Chinese-sourced parts, and these locally built cars are among Tesla’s most competitively priced globally.
In other words, Tesla’s public stance now seems to be: yes, there may be shifts for certain supply chains — especially those feeding U.S. factories — but China-based suppliers are not being blacklisted or abandoned wholesale. The company insists its sourcing decisions remain rooted in objective quality and performance standards, not in geopolitical posturing or blanket exclusions.
It’s a delicate dance. On one hand Tesla — like many global manufacturers — has felt growing pressure to reduce supply-chain vulnerability in the face of trade tensions and tariffs. On the other, its operations in China remain vast, complex, and deeply intertwined with local suppliers whose parts go into vehicles not just for China, but for export markets too.
Ultimately, this clarifying message from Grace Tao offers a kind of reassurance: despite the noise, Tesla sees value in its Chinese supplier partnerships, and remains committed to judging suppliers by standards — not by nationality.
Reviewed by Aparna Decors
on
November 26, 2025
Rating:
