Tesla's Tao Lin went viral with a picture: "Payment cycle has been shortened to about 90 days"! 204 auto parts suppliers have accounts receivable exceeding 230 billion yuan, a surge of 65% in 3 years

After BYD announced a 10% price reduction request to a certain supplier, it was recently reported that SAIC Maxus invited suppliers to participate in a cost control project, aiming for a 10% reduction in costs. Against the backdrop of multiple automakers requesting suppliers to lower prices, Tesla has spoken out. On November 28, Tesla's Vice President Tao Lin posted on Weibo, stating that the payment cycle to suppliers has been shortened to about 90 days, achieving a win-win situation with supplier partners. On the 28th, Tao Lin mentioned that in 2024, Tesla's payment cycle to supply chain partners has been further shortened compared to last year, now only requiring about 90 days. She introduced that over 95% of the components for the Shanghai Gigafactory come from local suppliers, and the achievements Tesla has made in China and globally are inseparable from these partners. "Achieving a win-win situation with supplier partners through technological innovation to increase efficiency and reduce costs is the only way for enterprises to go further, for the industry to prosper, and for consumers to continuously receive the best products," emphasized Tao Lin. She also posted a diagram showing the changes in payment times from Chinese new energy vehicle manufacturers to suppliers, noting that for some companies, the payment times have not only failed to shorten year by year but have actually lengthened significantly. Subsequently, Tao Lin added that cost reduction relies on technological innovation and reducing unnecessary expenditures, reiterating the importance of safeguarding supplier interests. She wrote, "Spend where it should be spent and save where it can be saved. Quick payments to suppliers do not mean that product prices need to be increased. Because cost control = technological innovation to improve efficiency + reducing all unnecessary expenses (such as luxury reception centers, advertising costs, executive offices... especially losses caused by wrong business/technical decisions)