Tesla now has over 400 tier-1 suppliers in China

Tesla has over 400 local tier-1 suppliers signed up in China, more than 60 of which are in its global supply chain system, according to local media. (A Tesla Model 3 Performance on display at the June 2024 Shanghai new energy vehicle show. Image credit: CnEVPost) Tesla (NASDAQ: TSLA) has more than 400 local tier-1 suppliers signed up in China, with more than 60 of them entering its global supply chain system, local media outlet Shanghai Securities News reported today. Currently, more than 95 percent of the components for Tesla's Shanghai factory are provided by local supplies, the article said, repeating figures previously mentioned by Tesla. Tesla's Shanghai factory, which began construction on January 7, 2019, and went into operation at the end of 2019, is the first wholly foreign-owned auto manufacturing project in China. Giga Shanghai began delivering Model 3 sedans in January 2020 and Model Y crossovers in January 2021 to local consumers. Back in August 2022, Grace Tao, Tesla's vice president of external affairs, mentioned that more than 95 percent of the Shanghai factory's components are provided by local suppliers. The second China International Supply Chain Expo (CISCE) opened today in Beijing, and Tesla is showcasing the Model Y, Model 3, humanoid robot, and several components made in China at the event. Tesla will work with suppliers to create safer and more efficient products, and also hopes to bring more local suppliers to the international stage, Shanghai Securities News quoted a Tesla source as saying. On average, a car rolls off the assembly line every 30 seconds or so at Tesla Giga Shanghai, the report said. In the first three quarters of 2024, Giga Shanghai delivered 676,000 vehicles, accounting for more than half of Tesla's global deliveries in the first three quarters, the report noted. In the January-September period, Tesla's Shanghai factory delivered 675,758 vehicles, contributing 52.24 percent of Tesla's 1,293,656 global deliveries in the same period, according to data compiled by CnEVPost. In October, Tesla China sold 68,280 vehicles, including 27,795 exported, according to the China Passenger Car Association (CPCA). The US electric vehicle (EV) maker sold 40,485 vehicles in China in October, the lowest since April, CnEVPost calculations show. That's up 41.43 percent from 28,626 vehicles in the same period last year, but down 43.93 percent from 72,200 in September. In the January-October period, Tesla sold 500,685 vehicles in China, surpassing the 500,000-unit mark and up 8.29 percent from a year earlier. FSD's China entry could come later than Tesla's projected Q1 2025, report hints