Part 9/14:
Tesla’s nimbleness becomes evident when considering potential geopolitical and regulatory shifts. The company’s supply chain in China comprises over 400 local Tier 1 suppliers, providing roughly 60 that are integrated into a global network. This positioning could prove advantageous if the US government enacts tariffs or trade restrictions. Recently, Tesla has faced political challenges in California, where Governor Gavin Newsom proposed an EV tax credit exclusion specifically targeting Tesla, despite it being the sole EV manufacturer based in the state. Many speculate this move is politically motivated, possibly linked to Newsom’s presidential ambitions in 2028. Such policies may incentivize Tesla to shift manufacturing away from California, favoring more business-friendly states like Texas.