Tesla: Payment Cycle to Supply Chain Companies Shortened to 90 Days in 2024
Recently, several domestic car companies have requested price reductions from the supply chain and longer payment terms, sparking discussions among netizens.
On November 28th, Grace Tao, Vice President of Tesla Global, posted a picture on Weibo showing changes in payment times from a Chinese new energy vehicle manufacturer to its suppliers.
She stated that by 2024, Tesla’s payment cycle to supply chain partners has been further shortened compared to last year and now only requires around 90 days.
And the chart shows that the payment cycles to the supply chain by other new energy companies have been extending from 2021 to 2023, especially for the first two companies, with a significant extension of over 250 days in 2023. Among the five companies, only Tesla’s payment cycle is gradually shortening.
Grace Tao also introduced that over 95% of the components in Gigafactory Shanghai are sourced from local suppliers. The achievements made by Tesla in China and globally are closely related to these partners.
To achieve mutual success with supplier partners, increase efficiency and reduce costs through technological innovation, enterprises can go further, industries can prosper more, and consumers can continue to receive the best products.
Previously, Tesla also announced data showing that currently, the localization rate of components at Gigafactory Shanghai has exceeded 95%. There are over 400 local first-tier suppliers contracted in China, with more than 60 suppliers entering Tesla’s global supply chain system.
In the first three quarters of 2024, Gigafactory Shanghai delivered 676,000 vehicles, accounting for more than half of Tesla’s global deliveries in the first three quarters. In October, the 3 millionth vehicle rolled off the production line at Gigafactory Shanghai, with one-third being exported to Europe and Asia-Pacific markets.
