Elon Musk’s enthusiasm for China doesn’t seem to have dimmed despite the lockdown-induced issues being weathered by Tesla’s factory in Shanghai. Suppliers don’t necessarily share the same sentiments.
During the latest earnings season, there was a sense of déjà vu. Executives at Taiwan-based Tesla suppliers offered candid comments about plans to diversify manufacturing away from China as they assessed the fallout from the government’s punitive lockdowns. It was almost as if we’d returned to the height of the trade war initiated by the Trump administration.