Tuesday, 05 October 2021 22:39

Morgan Stanley: How Tesla 'Found Chips' to Break Delivery Records

Written by Steven Loveday, Inside EVs


...much more of a software company than an automaker. The less Tesla has to rely on suppliers and other companies, the more control it has over its development and production processes.


Jonas pointed out Tesla's in-house development allows it to produce vehicles much more sophisticated than those using run-of-the-mill chips and parts shared by most automakers.


Added to this, Tesla's inside expertise gives it an advantage when it comes to negotiating with suppliers. The suppliers know if they can't get Tesla what it needs when it needs it, the company can simply produce its own. As the industry transitions, suppliers likely don't want to lose Tesla as a customer, so they have to work hard to satisfy the EV-maker's demands.


Finally, Jonas wrote about scale. Tesla is smaller than the competition, but it's growing exponentially. Its record-shattering quarter was reliant on just two factories. Meanwhile, two more factories are set to open in the very near future. Jonas said many suppliers are aware Tesla is a "strategic customer," so it's wise to keep that relationship positive.


We thank Inside EVs for reprint permission.


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