Cars aren’t built overnight. Big automakers spend years threading parts through global supply chains, leaning heavily on China’s manufacturing efficiency to keep costs down. But now, GM and Tesla are pumping the brakes.

Behind closed doors, OEM execs face a different calculation

As geopolitical volatility becomes a more and more expensive risk, carmakers don’t have the luxury of just hoping it’ll blow over. All things considered, they’re being forced to act like it won’t.

Reuters reported Tesla is ordering suppliers to leave China-made components out of its EVs built in the United States.

People familiar with those directives explained the automaker wants that shift completed within one to two years.

That puts Tesla in the same camp as GM, which already began moving away from Chinese sourcing

Both are reacting to a supply chain that’s become less predictable, especially as tariff policies shift.

Leaders inside Tesla and GM are trying to price vehicles two, three, even five years ahead. That’s tough to do when tariffs change faster than gas prices.

Executives across the industry are saying the same thing out loud. The CEO of the Alliance for Automotive Innovation recently emphasized the urgency of securing critical components, adding that chip delays could disrupt automotive production across the U.S. and beyond.

They weren’t exaggerating. Ford had to stop building the Explorer earlier this year because it couldn’t get $40 magnets, GM Authority pointed out. One missing part can shut down an entire assembly line.

Rare earth materials and magnets are the biggest chokepoints

China owns most of the refining and fabrication output, which leaves automakers exposed even if actual vehicle assembly happens in North America.

Tesla is already cutting reliance on Chinese suppliers in some U.S.-built models. It also plans to produce energy-storage batteries in Nevada.

GM hasn’t confirmed exact timelines, but its strategy aligns with creating more North American–based sourcing and manufacturing.

Tesla’s shift also comes during softer results in China itself

The company’s October sales of China-made EVs dropped nearly 10%.

Its overall production there fell more than 32% since September. The timing suggests the pivot isn’t just about politics. It’s strategic self-preservation.

Moving forward, expect both GM and Tesla to deepen relationships with North American and possibly European suppliers. It may raise costs short term, but I’m all for shifting component manufacturing back to the states, if that’s at all financially feasible.