Originally posted on EVANNEX. By Charles Morris In the early days of industrialization, most manufacturing companies were vertically integrated. Automakers such as Ford owned mines and steel mills, generated their own power, and operated their own delivery
In the early days of industrialization, most manufacturing companies were vertically integrated. Automakers such as Ford owned mines and steel mills, generated their own power, and operated their own delivery fleets. Over the decades, as global supply chains grew more sophisticated, automakers outsourced more and more, and nowadays some automakers depend on outside firms for everything other than vehicle design and strategic planning.
The founders of Tesla relied on this established global web of products and services to produce the Roadster. It was truly a world car: the carbon fiber body panels came from the French firm Sotira; the brakes and airbags were made by Siemens in Germany; the chassis and much of the suspension were built by Lotus in the UK; and the gearbox was made in Michigan by BorgWarner.
As Tesla moved on to produce Models S and X, however, it soon began to find the outsourcing model problematic—suppliers couldn’t implement innovations as quickly as the fast-moving young company wanted, and they sometimes assumed that sales projections were over-optimistic, and thus failed to produce parts in sufficient quantities.
Tesla’s leaders knew they would need to secure a supply of batteries as they moved to mass production, so the company teamed up with Panasonic at the Nevada Gigafactory. More recently, Tesla has started working with other battery suppliers, and in 2020 it began making some ofTesla developed early versions of Autopilot in partnership with the Israeli firm Mobileye, but in 2016, the companies parted ways. When it introduced Autopilot 2.
Tesla has gradually brought more and more design and production under its own roof—it’s probably the only automaker to build its own seats. In
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