Tesla Expands In China, Partners With Over 400 Local Suppliers: Report

Tesla, Inc. TSLA shares are trading higher on Tuesday.

The electric vehicle behemoth continues to strengthen its presence in China, CnEV Post reports.

The electric vehicle maker now works with over 400 local tier-1 suppliers, with more than 60 of them becoming part of Tesla’s global supply chain. Currently, more than 95% of the components for Tesla’s Shanghai factory are sourced from local suppliers, supporting its efficient production process.

The Shanghai factory, which began construction in January 2019 and became operational by the end of that year, remains the first wholly foreign-owned auto manufacturing project in China, the report reads.

This continued focus on local sourcing underscores Tesla’s commitment to expanding its footprint in the world’s largest car market.

Also Read: Best Buy Says Q3 Sales’ Little Softer Than Expected’ On Lower Demand For Appliances And Gaming, Trims Annual Forecast

Meanwhile, reports indicate that Tesla vehicles would not be eligible for rebates under a new California consumer rebates proposal. California Governor Gavin Newsom outlined new plans on Monday to offer incentives for EV buyers in California if President-elect Donald Trump gets rid of the current federal $7,500 tax break for EV buyers when he returns to the White House early next year.

CEO Elon Musk on Monday slammed California’s plans to shut the company’s electric vehicles out from consumer rebates under a new proposal, calling it an “insane” decision.

Musk responded to the report on social media platform X and wrote, “Even though Tesla is the only company who manufactures their EVs in California! This is insane.” The CEO added that the move would hurt jobs in California.

Price Action: TSLA shares are trading higher by 1.33% to $343.52 at last check Tuesday.

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