Tesla (Tesla stock) Motors’ supply chain strategy is based on two large Tesla factories in California and the Netherlands. The next branch is made only in Europe, but all major chassis and battery operations are in California. The degree of vertical integration is very high, as some key parts are purchased from third parties. To manufacture the Model S, Tesla needed more than 2,000 parts from 300 suppliers around the world. Many of them have special partnerships with California companies, especially battery manufacturers and other key components that depend on short-term transactions.
The reason is that Tesla is always looking for other suppliers or looking for these parts (vertical integration), even when the production line has problems. Its partners include Daimler and Toyota, which help develop batteries and engines for use in vehicle manufacturing. The only battery supplier has been required to manufacture Panasonic batteries since 2010. In 2011, cooperation on new-generation batteries was signed between the two companies. In 2013, Panasonic signed another agreement to produce 1.6 billion batteries for Tesla in 2011.
Brand value to attract more customers
The network is public when it comes to paying for the energy use of other electric vehicles, but all Tesla owners are independent. Another difference between Tesla and the traditional luxury car manufacturers is how the company makes money. In general, OEMs are completely dependent on selling cars to make money. In addition to selling cars, California companies make money in two ways other car manufacturers have never used. The company generates cash flow by selling electric trains and electrical engineering to competitors and selling JDV credits to other electric vehicles.
Typically, car companies get each other’s consent and each part of the contract is dedicated to a specific mission. Research and development characteristics are often shared. Additionally, companies can work together to reduce costs and share platforms, engines, or components. All of this is changing the way cars are tested, leaving OEMs unable to control emissions to provide customers with more accurate figures on emissions and fuel. Another new trend in the industry is the automobile.
Cars are increasingly interconnected and can operate on their own without any human intervention. The company also has success with brand positioning. Many market experts believe that stock prices could reach $ 7,000 in the next decade. Tesla Motors is a successful example of a value-oriented business. Based in California, the company is committed to providing the best technology embedded in its products on a regular basis. You can get more information from tesla stock news.