Tesla Prioritizes Quality Over Country in Supplier Selection
A high-ranking Tesla Inc. executive noted that the electric car manufacturer evaluates its suppliers according to their technological merits instead of their geographic location, underscoring the organization’s robust collaborations with Chinese producers in light of escalating geopolitical tensions that are making global trade more complicated. On the social media platform Weibo, Grace Tao, who serves as a vice president of Tesla in China, made the following statement on Wednesday: “A supplier’s country of origin does not constitute an exclusionary standard.” She noted on the social networking site that the company utilizes “the same strict, objective standards” for the selection of suppliers at all of its manufacturing facilities, which are located in the United States, China, and Europe. According to her writing, the procurement decisions made by Tesla are based on quality, total cost, technical maturity, and the guarantee of a continuous supply over an extended period of time.
Tao’s comments come at a time when there is an increased level of scrutiny being placed on the supply chains of automobile manufacturers, which is a consequence of the escalating trade tensions between Washington and Beijing that have had an impact on the automotive industry around the world. Earlier this month, the report says that Tesla has plans to stop using components that were built in China in cars that were assembled in the United States. Meanwhile, a source reported that General Motors Co. is taking similar moves. Given the extent of China’s power in the complex supply chain network, the capacity of American industries to reduce their reliance on China is still in question. Tesla’s operations in China are of significant importance.
Its facility in Shanghai is considered to be the company’s main manufacturing base and a crucial export location for markets in Asia and Europe. In addition, Tao pointed out that Tesla is presently working with more than four hundred supply chain partners in China. Of these, the automaker has integrated more than sixty Chinese vendors into its global procurement system, a strategy that, according to her, makes it easier for these enterprises to get access to the “world stage.”
