Does Tesla anticipate a war between China and Taiwan?

According to several experts, Tesla is reportedly reviewing its supply chains in China to prepare for a military conflict with Taiwan.

It’s a bit of a scramble in the supply chain of Tesla and its subcontractors. According to the highly reputable Japanese media Nikkei Asia, Tesla has asked six of its suppliers to relocate the production of certain critical electronic components used in its electric cars.

And the timeline is very tight: according to this media outlet, its sources report that these subcontractors must leave the areas of China and Taiwan by the end of the year. This is to ensure that production for 2025 is ready to go in case a military conflict between these two countries were to break out.

A game of poker?

Tesla aims for its supplies to now come primarily from South Korea, Thailand, or Japan. Nikkei Asia points to a critical date concerning the potential invasion of Taiwan by China: the end of 2024 and the American presidential elections, which will divert the United States’ attention from such a global issue.

Is this strategy of fanning the flames of geopolitics justified, or does it serve as a pretext to renegotiate production locations to make them more compatible with future sites? One thinks particularly of India, a country that also has very complicated relations with China and does not view the importation of technology – and thus its dependence – from its cumbersome imperialistic neighbor favorably.

Unless Tesla aims to win its standoff against the Chinese government, where a very anti-Tesla discourse has led to a collapse in its sales: down 30% in a year! Now, the Shanghai factory is operating at half capacity, resulting in huge losses and massive layoffs. Business first!

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