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Tesla Motors, Inc. Message Board

  • kz7m kz7m Jul 20, 2013 8:39 PM Flag

    Tesla Manufactures its own parts

    Tesla has officially broken the automaker mold of horizontal supply expansion. Unlike other major automakers which outsource their materials, Musk’s Fremont, California facility is highly self-contained. According to Bloomberg, the factory “stamps its own aluminum body panels and chassis parts, molds plastic components and dashboards, and even die-casts individual metal components.”

    Sentiment: Strong Buy

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    • I think china will kick in with gas or diesel generator charger to fit in the hood for longer drive. imo

    • That is the right way to do it. Control all parts of the product to control quality and working cohesiveness of parts.

    • It is easier for Tesla to vertically integrate than for ICE auto manufacturers. It take specialized components for ICE autos like fuel injectors, fuel pumps, electronic motor controls, piston and rings, seals, transmission components. Considering how complex these cars are, most manufacturers have improved the quality over the years.

      I am wondering... does Tesla make the step down gear or do they still buy from Borg-Warner? How about the inverter? Is it assembled in house? I know they buy a computer box from NVidea, but how much do they do in house? Rims? Supercharger?

      • 1 Reply to ajitmd2000
      • Rims are too cheap elsewhere unless you are going for top of the line bling. Gas car parts are all over the place in terms of inventory and price. I own three used gas cars and one of them a VW, I've replaced the whole engine for $800. Took me awhile to do it. More and more people are doing their own repairs due to easily available how to fix it information on the net.

        Sentiment: Strong Buy

    • They refer to it as vertical manufacturing. They even do the copper windings in the electric motors. Their production line is more of a workshop setting. It's as if they are building custom motorcycles. They build no more than what is already ordered by customers. Lamborghini which is owned by Audi doesn't even go this far. Lambo's carbon fiber body is molded by outside vendors. Toyota also relied on local vendors that molded plastic parts when they where at Nummi.

      Sentiment: Strong Buy

      • 1 Reply to zzap999
      • It seems like you are operating on the assumption that outsourcing is bad because it is more expensive. I contend that there is some very smart management at the large car companies that could easily build factories to produce their own parts, but they do not do this based on the economics of the situations.

        Yes, I am saying that it is more expensive for the GM's and Fords to produce all of their own parts. But this situation does not apply to TSLA. The reasoning behind this is the unions.

        Their third party vendors can supply parts at a cheaper rate than what GM or Ford could do themselves. So, in essence, I am agreeing with you. But the overall tone on this forum seems to be knocking them for not doing something that they should be doing. I simply feel that the big car manufacturers are actually doing whats right for them.

        On another note, one major risk to consider for TSLA is whether unions can penetrate the company.

    • So which automaker does not do this?

      • 2 Replies to temagami67
      • Tema,
        Stop ruining their delusions. Tesla is run by a genius. Rather than accessing the volume efficiency of the supply chain Tesla will do everything itself and suckeed. yep. Tesla doesn't need anyone.

        Question: Why does tesla keep blaming suppliers for all of their production problems and quality issues if they make everything in house?

        Answer: never mind. The rest of the auto world is in awe of Tesla. Imagine the audacity to stamp fenders in house. It's unheard of.

      • BMW, VW, Ford, Toyota, Honda, etc. Basically every major car company relies on outside vendors to make all the plastic interior, exterior parts. They just mold and weld the aluminum chassis and engine.

        Sentiment: Strong Buy

    • pdpp59 Jul 20, 2013 8:56 PM Flag

      Oh yeah they do. I've watched them on video. They start with big rolls of aluminum and the machinery that makes these cars is just amazing. You should youtube it.

      Sentiment: Strong Buy

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