Tesla Inc (NASDAQ: TSLA) has supply-chain ties with Russia, CNBC reported on Monday, citing internal documents.
What Happened: The Elon Musk-led company has bought aluminum worth millions of euros from Moscow-based Rusal — a company founded by sanctioned Russian oligarch Oleg Deripaska — since late 2020, according to the report.
U.S. Treasury sanctions against Rusal were lifted under former President Donald Trump in 2019.
Tesla buys aluminum from Rusal to use it for casting parts at its Giga Berlin factory, the report said, adding that there was no indication the metal was used in U.S. production.
See Also: Elon Musk Says Tesla, SpaceX Under 'Significant' Inflationary Pressure For Raw Materials, Logistics
Tesla’s Giga Berlin recently secured approval for commercial production after months of delays due to environmental objections.
Tesla and other automakers worldwide have been securing supplies from Russia-based companies.
Why It Matters: Musk has publicly supported Ukraine after Russia’s invasion that began three weeks ago. The billionaire entrepreneur has supplied the war-ravaged nation with SpaceX’s Starlink internet terminals to establish communication.
Musk has also mocked people supporting Ukraine and on Monday challenged Russian President Vladimir Putin to “single combat”, with the “stakes” being Ukraine.
See Also: Tesla Rushes To Hike Prices Of Some Model 3, Model Y Cars In US Amid Surging Nickel Prices
I hereby challenge
— Elon Musk (@elonmusk) March 14, 2022
Владимир Путин
to single combat
Stakes are Україна
Russia’s war against Ukraine has added to global automotive supply chain woes. Musk on Sunday said Tesla and SpaceX were facing significant inflationary pressure related to the cost of raw materials and logistics.
Price Action: Tesla stock closed 3.6% lower at $766.4 a share on Monday.
Photo courtesy: Tesla Inc
