Tesla reportedly asked suppliers to manufacture outside of China and Taiwan

Tesla is creating an alternative supply chain to build fast products and that may relate to the new report which mentions that the company asked suppliers to manufacture products outside of China and Taiwan.

Nikkei Asia reports that Tesla told its supply chain partners to produce components for products and parts for its electric vehicles overseas as early as next year.

These suppliers make components including printed circuit boards, displays, and electronics control unit systems for Tesla EVs sold outside China. Tesla has a large production facility in China to supply local customers and it’s one of the largest EV sellers in the country.

This report comes amid the ever-remained geopolitical tension between China and Taiwan. The island on Monday welcomed its new President Lai Ching-te and urged China to stop political and military threats against the island.

China has repeatedly denounced Lai as a “stubborn worker for Taiwan independence” and a dangerous separatist.

The Communist Chinese government thinks that democratic Taiwan is part of its territory and continuously intimidates the democratic island with military drills and similar activities.

Not only Tesla but other major industries may be worried about their business stream with such a tense situation. It may affect their future product lineup sold in the global market.

Tesla has not commented on this matter but an alternative supply base could help the company to secure new components to build new EVs and other tech products.