Aside from production inefficiencies, there are also profitability effects, with CFO Zach Kirkhorn saying that "supply chain challenges, including expedites, continue to provide cost headwinds." The company's supply chain operations remain finely balanced with just nine days of global vehicle inventory compared with 17 days a year earlier. That can mean disruptions to the slower-moving parts of the supply chain could have an outsize impact on operations. In turn, the desire to maintain a more robust supply chain may lead Tesla to prefer local suppliers — for example, in Mexico — for its U.S. manufacturing, which would also help meet rules of origin requirements under the U.S.-Mexico-Canada Agreement. Panjiva data shows there has already been a rapid increase in exports from Mexico linked to Tesla, with a rise of 300.0% year over year in the three months to May 31 and 194.4% compared with the same period of 2019.