Tesla's global sales have sharply declined, with the US and European markets experiencing the steepest drops. Sources cite multiple contributing factors, including public tensions between CEO Elon Musk and US President Donald Trump, as well as intensifying head-to-head competition with China's BYD across major markets.
Tesla has heavily invested in automotive camera development to advance its autonomous driving ambitions, but insiders report internal indecision over design strategy and growing pressure from BYD's surging sales. Nonetheless, Tesla has asked suppliers to set up production bases in so-called "third countries."
Sources say Tesla's self-driving roadmap remains uncertain, prompting some suppliers, especially those tied to emerging projects like camera modules, to reconsider their involvement. The recent sales downturn has led several vendors to scale back or exit ongoing engagements.
The "third countries" Tesla is targeting are largely in Southeast Asia, with Thailand emerging as the preferred location. Dubbed the "Detroit of the East," Thailand offers a mature automotive supply chain ecosystem and a strong export base.
Taiwanese optics firms, longtime partners of US, European, and Japanese automakers, often enter the supply chain via system integrators. While initial qualification and testing periods are lengthy, these collaborations generally result in more stable and sustained order flow.
In contrast, working with newer players like Tesla tends to involve greater uncertainty. Design cycles are more fluid, and partnerships with China's emerging EV startups often expose suppliers to heightened payment and credit risks.
Several suppliers report that Chinese EV startups frequently encounter funding shortfalls, resulting in production delays and payment defaults. To mitigate risk, many vendors now require deposits or full advance payment before shipment.
Beyond the uncertainties tied to Tesla's vehicle camera roadmap, its humanoid robot initiative, Optimus, is also encountering setbacks. Still, optics suppliers note that humanoid robots from Tesla and other developers remain in their infancy and pose little impact on supply chains for now.
Article edited by Jack Wu
