The latest supply chain disruption report comes from Reuters, which claims that shipments of Tesla components from China—intended for its Cybercab and Semi—will be suspended. The report, based on a single unnamed source, has not been confirmed by Tesla or Elon Musk on X.
Here’s more color on Tesla’s trade disruption, as described by the source:
Tesla was ready to absorb the additional costs when Trump imposed the 34% tariff on Chinese goods but could not do so when the tariff went beyond that, leaving shipping plans suspended, said the person, who declined to be named as the matter is private.
Trump raised additional tariffs to 84% on April 9 and has since increased that to 125%, bringing the total tariffs on Chinese goods exported to the U.S. to 145%.
The company was scheduled to start receiving component shipments in upcoming months with the goal of starting trial production of the two models in October and mass production in 2026, the person said, with Cybercab to be produced in Texas and Semi in Nevada.
The source continued:
Tesla has for the past two years been increasing the proportion of parts sourced from North America for its U.S. factories in view of potential U.S. tariffs on China, the source and a second person said.
No specific details were provided about which parts from Chinese factories were affected, but the disruption has reportedly thrown Tesla’s production plans for the two vehicles set to enter series production near-term into disarray.
According to public trade data compiled by counterparty and supply chain risk intelligence firm Sayari, Tesla receives about 40% of its shipments from China, 36.69% from Mexico, and 11.44% from South Korea. Most of the parts coming from overseas include “Vehicle Parts & Accessories” and “Storage Batteries” according to the trade data.
Tesla’s top overseas suppliers:
The latest trade data (as of March 4) shows shipments of “COOLANT TUBES” and “SPHERICAL GRAPHITE” and “LITHIUM ION BATTERIES” departed from China and arrived at U.S. ports.
The countdown begins until Musk denies the Reuters report (this has happened before with other MSM outlets).
So, how will Musk diversify Tesla’s supply chains away from China, especially for lithium?
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