Tesla and SpaceX CEO Elon Musk won global praise for assisting Ukraine as Russia began its brutal invasion.
Tesla's willingness to work with at least one Russian supplier is not unusual — ten of the world's largest automakers buy from at least one tier-1 supplier in Russia, according to Interos, a global supply chain and risk management research firm based in Arlington, Virginia.
Since Russia's 2022 siege on Ukraine began, Rusal has not been sanctioned again by the US, and Deripaska's standing with Putin is unknown. The billionaire has called for peace, and Rusal is not Tesla's sole or primary aluminum supplier. Tesla has worked for years with metals giant Hydro as a more significant supplier of aluminum, for example. According to Hydro's website, the company's aluminum metal production facilities are based throughout Europe, Canada, Australia, Brazil and Qatar."Two-thirds of our primary aluminum production is based on renewable energy," the company boasts.
One former employee with direct knowledge said Tesla's previous CFO, Deepak Ahuja, was"allergic" to doing business in or with Russia due to the the rise and impacts of Russian organized crime in the country, and risks of sanctions on any suppliers or partners in Russia following Moscow's invasion and annexation of Crimea in 2014.
By December 2020, Tesla decided to start sourcing some aluminum from Rusal for casting at its new plant being built in Germany and was doing so through February 2022.According to Interos, which monitors global supply chains using machine learning software, ten of the world's largest automakers all have at least one direct supplier in Russia, and 27 companies based in Russia directly supply these car companies.
Pirnia noted that even if it remains legal, and ethically justifiable, for automakers to work with Russian suppliers, banking focused sanctions and the complexity of legal compliance could make it nearly impossible to keep doing so.
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