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>Even if energy generation, storage and an auto powertrain are a seamless product, so-called vertical integration, in which one manufacturer makes all the compo

>Even if energy generation, storage and an auto powertrain are a seamless product, so-called vertical integration, in which one manufacturer makes all the components, was the old Henry Ford model and later, General Motors’. That approach has gone down in automotive history as a colossal failure. What is Tesla meant to do if nobody else is able to deliver what they demand? Ford Motor Company essentially created a new industry, which is why they had to make all their parts... Tesla is doing a similar thing here imho.

latj 10y ago
There are plenty of PV suppliers out there. I believe FSLR is the largest. The deal does make sense to me though. In the beginning it worried me that Tesla only had one product. One major flaw in the product could have ended them and they we creating a completely new kind of product that is expected to last decades. Now they have storage which makes sense because they can grow it along with their auto battery technology. But they also have these stupid stores where you cant really do much and you can only buy two things- a car or a battery for your house. It makes perfect sense to be able to buy the panels from them because otherwise you can buy the batteries from whoever you buy panels from. People who like Tesla are Apple users. They want complete packages, everything brushed aluminum with an apple or tesla logo on it.
Theodores 10y ago
In fairness Tesla tried outsourcing everything with the Roadster. However it didn't quite work out too well and, even though the problems were addressed, the lesson learned was that vertical integration was the way forward. Parts are outsourced still, the Falcon Wing Doors are outsourced to a supplier and plenty of components (e.g tyres) obviously just get bought in. Essentially the lesson learned from starting with 'outsource everything' and moving to vertical integration has helped lead to this. Shareholders could bear in mind that outsourcing has been tried.

latj 10y ago

There are plenty of PV suppliers out there. I believe FSLR is the largest. The deal does make sense to me though. In the beginning it worried me that Tesla only had one product. One major flaw in the product could have ended them and they we creating a completely new kind of product that is expected to last decades. Now they have storage which makes sense because they can grow it along with their auto battery technology. But they also have these stupid stores where you cant really do much and you can only buy two things- a car or a battery for your house. It makes perfect sense to be able to buy the panels from them because otherwise you can buy the batteries from whoever you buy panels from. People who like Tesla are Apple users. They want complete packages, everything brushed aluminum with an apple or tesla logo on it.

Theodores 10y ago

In fairness Tesla tried outsourcing everything with the Roadster. However it didn't quite work out too well and, even though the problems were addressed, the lesson learned was that vertical integration was the way forward. Parts are outsourced still, the Falcon Wing Doors are outsourced to a supplier and plenty of components (e.g tyres) obviously just get bought in. Essentially the lesson learned from starting with 'outsource everything' and moving to vertical integration has helped lead to this. Shareholders could bear in mind that outsourcing has been tried.