Published by Global Banking & Finance Review®
Posted on November 26, 2025
2 min readLast updated: January 20, 2026
Add as preferred source on GoogleTesla values China suppliers, ensuring no exclusion by origin, enhancing global production standards. The Shanghai factory achieves competitive pricing with local sourcing.
SHANGHAI (Reuters) -A top Tesla China executive said on Wednesday the U.S. automaker values the role of China-based suppliers and does not exclude any on the basis of country of origin or geographical location.
The remark by Grace Tao, on Chinese social media platform Weibo, came after the Wall Street Journal said this month that Tesla has been requiring suppliers to exclude China-made components in its manufacture of cars in the United States.
"Whether in the United States, China or Europe, Tesla applies the same strict and objective standards for selecting suppliers across its global production facilities," Tao said.
"The country of origin or geographical source of the supplier does not constitute an exclusionary criterion," added Tao, who is Tesla's vice president charged with handling government affairs and public relations in China.
She did not directly refer to the newspaper report.
Tesla's Shanghai factory achieved the lowest prices globally for consumers in China to buy its Model 3 and Model Y with the help of more than 400 domestic supplier, Tao said, adding that more than 60 of them also supply Tesla globally.
Tesla has said it sources locally more than 95% of the components in the China-made Model 3 and the refreshed version of the Model Y. The Model 3 is sold from 235,500 yuan ($33,250) in China, versus $36,990 in the United States.
General Motors has told several thousand suppliers to scrub their supply chains of parts from China, Reuters reported in November, reflecting automakers’ growing frustration over geopolitical disruptions to operations.
($1=7.0822 yuan)
(Reporting by Zhang Yan, Brenda Goh; Editing by Clarence Fernandez)
A supplier is an individual or business that provides goods or services to another entity, often as part of a supply chain.
A component is a part or element of a larger system or product, often used in manufacturing and assembly processes.
Local sourcing refers to the practice of obtaining goods and services from local suppliers to support the local economy and reduce transportation costs.
A factory is a facility where goods are manufactured or assembled, often using machinery and labor to produce products at scale.
A production facility is a location where products are manufactured, including factories, plants, and workshops, equipped with the necessary machinery and labor.
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