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Vertical Integration

Discussion in 'Tesla Motors' started by PeterW, Jul 17, 2013.

  1. PeterW

    PeterW Member

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    Will Tesla look at going further towards vertical integration? What could they do?

    I know a while a go Elon was complaining about the cost of aluminium.

    What about batteries? Could they build their own factory and manufacture them? Should they?
     
  2. JPP

    JPP Active Member

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    At Teslive, George B actually discussed that very topic among a small crowd at the Saturday factory party. Indeed they are looking to try to take back some manufacturing/sourcing as appropriate. They already heavily 'customize' the batteries which are produced by Panasonic. Turns out that there is lots of extra capacity to produce batteries both within Panasonic and other Asian companies, so no need to built a factory, but maybe set up their own production line.
     
  3. blakegallagher

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    Just to clarify did George B mention Tesla setting up their own production line inside of another company's battery factory?
     
  4. JPP

    JPP Active Member

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    No direct recollecction...
     
  5. Sus

    Sus Member

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    Did GeorgeB go into what Tesla taking back some of the manufacturing/sourcing would look like?
     
  6. evme

    evme Member

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    If Tesla requires a large sums of batteries, Tesla might be able to convince Panasonic to open up a factory in California. This battery packs are not light and it might make some sense to produce them locally. The question boils down to where the materials for the batteries are sourced.
     
  7. JPP

    JPP Active Member

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    ...no specifics from George B..but Tesla is keenly aware of parts sourcing, costs, risks and benefits of controlling the supply chain, etc. Remember, they only recently became profitable, and auto suppliers like to sell to profitable entities that turn out a lot of vehicles.
     

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