Tensions Between The Us And China Are Not Affecting Tesla's Plant

Tesla Inc. is unconcerned about the political and economic tensions between the US and China, according to Tom Zhu, the automaker's worldwide production chief who is Chinese-born. Zhu said the Shanghai operations should be fine as long as the business maintains making quality products and generating jobs.

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Elon Musk, Tesla's CEO, asked Zhu a question about the company's plans to gain market share in China and the tensions between the two largest economies of the world during the company's Investor Day. This was Zhu's first public appearance since moving from Shanghai to Tesla's Austin headquarters late last year. 

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With the factory and our suppliers, we produced a sizable number of jobs and made significant contributions to the neighborhood, according to Zhu. I don't think there is much risk as long as we are required in the nation.

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He also praised Tesla's highly localized supplier network in China as evidence of this, in contrast to other businesses like AirPods manufacturer GoerTek Inc. who are diversifying outside of China because to political unrest and after being damaged by China's rigorous Covid Zero lockdowns. GoerTek is exploring expanding in India while investing an initial $280 million in a new Vietnam plant. US tech corporations are particularly pressing suppliers to look into other locations.

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Tesla's Shanghai factory uses more than 95% of local suppliers for both manufacturing and supplying its products, Zhu said. He added that the company employs 35,000 Chinese workers and has less than twenty expatriates in its workforce. Our aim is to localize as much as possible, and this I believe gives us a distinct advantage over a large number of OEMs around the world in terms of competing.