Tesla China's Vice President Grace Tao highlighted that the company's payment cycle for local suppliers has been reduced to around 90 days, marking a significant improvement over the previous 100 days in 2023. Tao noted that this change demonstrates Tesla's commitment to enhancing its relationships with supply chain partners, which she credited as essential to Tesla Giga Shanghai’s operational success and overall growth in both local and global markets.
Tao's post also revealed that 95% of components for Tesla's Giga Shanghai come from local suppliers, emphasizing the importance of these relationships in supporting Tesla’s achievements in China. This strategy supports Tesla’s operational efficiency and aids in maintaining a competitive edge in the fast-evolving automotive market, distinguishing it from competitors like BYD.
In her Weibo message, Vice President Tao drew a contrast between Tesla's supplier relations and BYD's approach, which was highlighted by a leaked letter requesting a 10% price cut from suppliers. This contrasting strategy reflects different operational priorities, with Tesla focusing on strong collaborations while BYD engages in annual negotiations that could pressure suppliers.
BYD's General Manager Li Yunfei explained that renegotiating supplier prices is a routine practice, signifying a divergent approach in market strategy. The contrasting narratives surrounding Tesla and BYD's supplier relationships suggest varied managerial philosophies in dealing with suppliers, further underlining the significance of effective collaboration in maintaining industry competitiveness.
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