Tesla Inc (TSLA)

[mauser96]

vertical integration

http://www.economist.com/node/13173671
It probably would not have been possible to build a Tesla in the days when all there big car companies were vertically integrated.A ready source of components shared by BEV and ICE vehicles meant that only a smallish percentage of the car had to be designed from scratch. Shared components could be purchased from suppliers and ICE companies.

It is known that Tesla is headed back to the vertical integration model. This is most visible in the gigafactory. Apparently using the ideas of modern manufacturing , more robots, fewer but better quality, better paid workers . Who won't want or need a union because they are well treated , and have no " us vs them "attitude. IOW a shift from "labor intensive" as it's commonly perceived in the car business to more "capital intensive". And a shift from hardware to more emphasis on software.


This implies thatTesla believe2 that they can get better quality products than suppliers who fight for every dime , earning only enough to barely survive. Suppliers who have neither the inclination ,skills, or t money to innovate.