Tesla’s presence in China is stronger than ever, with over 400 local tier-1 suppliers signed up in the country. Among these suppliers, more than 60 have entered Tesla’s global supply chain system, according to a report by Shanghai Securities News.
The electric vehicle (EV) maker’s Shanghai factory relies heavily on local suppliers, with more than 95 percent of components sourced locally. This figure was reiterated by Tesla’s Vice President of External Affairs, Grace Tao, back in August 2022.
Giga Shanghai, Tesla’s first wholly foreign-owned auto manufacturing project in China, has been delivering Model 3 sedans since January 2020 and Model Y crossovers since January 2021. The factory is a key player in Tesla’s global delivery numbers, with more than half of the company’s vehicles being produced and delivered from this location in the first three quarters of 2024.
At the ongoing second China International Supply Chain Expo in Beijing, Tesla is showcasing its Model Y, Model 3, humanoid robot, and various components made in China. The company aims to collaborate with local suppliers to enhance product safety and efficiency, while also helping these suppliers gain international exposure.
On average, a car rolls off the assembly line every 30 seconds at Tesla Giga Shanghai, showcasing the factory’s efficiency and productivity. In the month of October alone, Tesla China sold 68,280 vehicles, including 27,795 that were exported.
Despite a slight dip in sales compared to September, Tesla’s performance in China remains strong, with over 500,000 vehicles sold in the country from January to October, marking an 8.29 percent increase from the previous year. This milestone underscores Tesla’s continued success in the Chinese market.
Looking ahead, Tesla’s Full Self-Driving (FSD) technology is expected to make its entry into the Chinese market, albeit potentially later than the projected Q1 2025 timeline. This development highlights Tesla’s commitment to innovation and its ongoing efforts to expand its presence and offerings in China.
