According to a recent report from Shanghai Securities News, Tesla has significantly expanded its supplier network in China. It now works with over 400 Tier-1 suppliers, of which more than 60 are integrated into the company’s global supply chain.
This development represents a substantial deepening of Tesla’s localization strategy in one of its most critical markets.
The company’s Giga Shanghai factory has emerged as a cornerstone of Tesla’s manufacturing capabilities, delivering 676,000 vehicles in the first three quarters of 2024 and accounting for over half of Tesla’s global deliveries during this period.
The facility’s remarkable efficiency is highlighted by its production rate of one vehicle every 40 seconds, positioning it as the most productive Tesla factory worldwide with an estimated annual output exceeding 950,000 vehicles.
A Tesla China representative emphasized the company’s strategic approach, focusing on developing partnerships with domestic suppliers to create safer and more efficient products.
This commitment extends beyond mere production, with the company aiming to elevate local suppliers to the international stage.
The approach builds upon the previously established milestone of over 95% of Giga Shanghai’s components being sourced domestically.
Tesla’s market presence in China continues to strengthen, with the Model Y performing exceptionally well in the domestic automotive market. To showcase its technological capabilities and local manufacturing prowess, the company recently participated in the second China International Supply Chain Expo in Beijing, presenting the Optimus humanoid robot, Model Y, Model 3, and a range of domestically produced components.