Tesla has instructed its suppliers to stop using China-made components in vehicles built in the United States, reports Reuters. The company has already replaced some parts and aims to complete the switch to non-China sources within one to two years, according to people familiar with the matter.

Executives have faced difficulties with unpredictable tariffs linked to the US-China trade dispute, which have complicated pricing strategies. Tesla has been expanding North American sourcing for its US factories over the past two years in response to tariff threats, Reuters noted in April.

Earlier this month, figures from the China Passenger Car Association showed Tesla's China-made electric vehicle sales dropped 9.9 per cent to 61,497 units in October compared with a year earlier. This reversed a 2.8 per cent increase recorded in September.