Over the last 15 years, Tesla has been a shot in the arm for the American automotive industry, dominated for so long by the Big Three – General Motors, Ford, and Stellantis (nee Chrysler). It threw out internal combustion engines, making all-electric vehicles exclusively; it also threw out the conventional dealership business model, allowing customers to buy cars directly from the manufacturer. From a humble startup to the auto brand with the highest market-cap in the world, Tesla has shown that the quintessentially American ability to shake up convention, and get rich in the process, is alive and well.
That said, just how ‘American’ is a Tesla car, really? In March of 2025, Tesla’s X account claimed that they “are the most American-made cars.” For once, they actually seem to be telling the truth. American University’s Kogod School of Business lists Tesla as the car maker with the most domestically sourced components on average in their 2024 Made in America Auto Index, at 81%. Cars.com lists three Tesla models in the top 12 lineup for its American-Made Index in 2024.
According to the National Highway Traffic Safety Administration, as of October 2024, Tesla models featured between 60-75% components made in the U.S. or Canada, and also 20-25% components from Mexico. That puts the vast bulk of all Tesla components in North America, leaving only a small percentage from elsewhere. Furthermore, all Teslas sold in the U.S. are also manufactured in the U.S., either in Fremont, CA or Austin, TX.
Not every component can be made in America
Thanks to the American Automotive Labeling Act of 1994 (AALA), car manufacturers don’t have to distinguish between components made in the U.S. or Canada, since those supply chains are so tightly integrated and have been duty-free for decades. So, determining which components are made in the United States specifically is nearly impossible. In fact, many car parts go back and forth across the border several times as they are assembled, making it difficult for the industry to assess just how much they owe in tariffs under the Trump administration’s new trade rules.
What’s more, car components require raw materials, but those are sometimes only found in specific areas of the world, and even then, the mines might be owned by a company in another country altogether. For Tesla, they need to source lithium, graphite, and other critical ingredients for batteries from around the world. That means they have to sign contracts with foreign suppliers; there simply isn’t another option. Other parts, like semiconductors and rare earth minerals, also require overseas sourcing.
All in all, Tesla can honestly say that their cars are proudly American … to a point. To their credit, they’re doing just about as red, white, and blue a job of it as they possibly can, but it’s highly unlikely any vehicle in the modern world can be entirely made from front to back in one country. As Tesla CEO Elon Musk himself has said, “The tariff impact on Tesla is still significant.”
