Part 2/10:
In the current climate of heightened tariffs, the importance of global supply chains for automobile manufacturers has never been more apparent. Companies must now strategize to ensure localized supply chains that can withstand economic pressures in different regions. Being solely focused on the U.S. market is no longer a viable strategy; instead, manufacturers need to ensure that each geographical market operates independently and resiliently.
Tesla exemplifies this strategy by having diversified operations across Europe, Asia, North America, and South America. However, Tesla still faces dependency issues, especially in terms of sourcing battery components and software that predominantly originate from the U.S. and China.