[News] Tesla Says 95% of Model 3 and Refreshed Model Y Components Now Sourced in China

According to a report from iFeng News, Tesla China states that more than 95% of the components used in every Model 3 and refreshed Model Y are currently sourced in China, underscoring the company’s deep integration with China’s local supply chain.

As highlighted by Reuters, Tesla produces Model 3 and Model Y vehicles at its Shanghai factory for both sales in China and exports to markets such as Europe, which account for a large share of its global sales.

At the same time, Tesla suspended new orders for its U.S.-made Model S and Model X vehicles on its Chinese website, Reuters notes.

While the company did not offer an official explanation, Reuters notes that the move follows China’s imposition of tariffs on U.S.-made goods in response to tariffs enacted under U.S. President Trump.

Trump’s tariffs have influenced Tesla’s production strategy. According to another Reuters report citing sources, Tesla halted plans to ship components from China for its Cybercab and Semi electric trucks in the U.S. after Trump raised tariffs on Chinese imports.

Sources cited in the report indicate that Tesla had targeted October for trial production of the two models, with mass production slated for 2026, as noted by Reuters. The Cybercab is planned for production in Texas and the Semi electric truck in Nevada, the report adds.

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