Tesla is accelerating its strategy to remove components made in China from vehicles manufactured for the U.S. market, according to a report from The Wall Street Journal. The push is a response to U.S. tariffs on Chinese imports and rising geopolitical tensions. The company is reportedly aiming to have its suppliers switch all remaining Chinese parts to those made in other countries within the next one to two years. This strategic move involves encouraging its longtime China-based suppliers to establish production facilities in other regions like Mexico and Southeast Asia. Tesla had previously stopped using Chinese-made lithium-iron-phosphate (LFP) batteries in its U.S. cars last year due to tariff implications and ineligibility for certain EV tax credits. In other news on the same day, Stifel raised its price target for Tesla stock to $508 from $483, pointing to progress in the company's robotaxi development. Additionally, Tesla, alongside Mercedes-Benz, won approval to register its generative artificial intelligence assistant services in China, a key step for deploying advanced in-car features in the major market.
Tesla Accelerates Supply Chain Shift, Moving to Eliminate Chinese Parts from US-Built Cars
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