Tesla says its Shanghai factory now sources 98% of its parts from suppliers in China, compared with the “more than 95%” figure it previously reported. Tesla disclosed the new rate at the China International Import Expo, which opened on November 5, according to CnEVPost.
This number tells us how many parts that are used in the factory are sourced locally. These reports do not identify the parts that aren’t locally sourced or where they come from.
More Than 60 Chinese Suppliers Have Joined Tesla’s Global Network
Tesla works with more than 400 Chinese tier-one suppliers, companies that supply components directly to the automaker. More than 60 have joined its global supply chain, CnEVPost reported on November 6.
Some partnerships go beyond manufacturing. For example Tesla worked with Chinese suppliers to develop armrests and leg rests for the six-seat Model Y L. The longer SUV debuted in China before expanding to Japan, South Korea and Australia.
Tesla also launched the Model Y L in the United States in July, as its quarterly update confirms. Shanghai began vehicle production in late 2019. According to Tesla’s July 2026 update, the factory can produce more than 950,000 Model 3 and Model Y vehicles annually.
Shanghai Shipments Are Up 21% Through October
Tesla’s Chinese wholesale shipments reached 67,829 vehicles in October, up 10.3% from 61,497 in October 2025. Even though compared to last year October looks good, the month also had a 28.9% decline from September’s 95,366, according to China Passenger Car Association data compiled by CnEVPost.
From January through October 2026, Tesla’s Shanghai shipments rose 21.4%, from 667,861 vehicles during the same period in 2025 to 810,889. These figures include vehicles sold in China and exports to Europe, Canada, the Asia-Pacific region and other markets.
EVXL previously covered Shanghai’s five-millionth battery pack in November 2025. According to Drive Tesla, Tesla Asia announced six million in August 2026. The factory had also built four million vehicles by late December 2025, as EVXL reported.
EVXL’s Take
Sourcing 98% of its Shanghai parts locally shows how deeply Tesla relies on China’s suppliers. The more important question is how much Tesla’s factories outside China rely on Chinese suppliers. More than 60 already supply Tesla’s global operations, but the reports don’t say which factories receive those parts. Without that information, it’s unclear how much Tesla’s U.S. factories in Austin and Fremont depend on Chinese suppliers.
Sources: CnEVPost, Drive Tesla, Tesla.
EVXL uses automated tools to support research and source retrieval. All reporting is by Damien Kesteloo, edited by Haye Kesteloo.
