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> Tesla's bet is that internal production of parts will lead to better and cheaper components. This has not worked for any other automaker. It's working well f
by grecy 9y ago
> Tesla's bet is that internal production of parts will lead to better and cheaper components. This has not worked for any other automaker.
It's working well for SpaceX who are doing just that while the incumbents in the rocket industry are not and the prices reflect how well it can work.
> Traditional OEMs shoot for a mix of components where the internally produced components are part of the company's core competence: Body Shells, Engines, Transmissions - and externally produced components may be generic - switches, latches, seats, frames, tires, wheels, etc.
Ummm, which automaker makes it's own transmissions anymore? Quite a few don't even make their own engines either (Dodge with Cummins engines, Jeep with VM engines, etc. etc.)
- erk__ 9y agoI don't think you can really compare a 10's each year assembly line Winther one that has to do 10's each hour.