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> And then there's in house software creation, vs everyone else. Software makes their use of their motors more efficient. You think automakers don't know about

> And then there's in house software creation, vs everyone else. Software makes their use of their motors more efficient. You think automakers don't know about software? You do realize that what the ECU has to do to keep internal combustion engines running as efficiently as they do today is at least an order of magnitude more complex that electric motor management > That's before you have the problem with how to get rid of your non EV business. That's an asset, not a liability. Some places in the world are unlikely to have the infrastructure to support a conversion to EVs in the next decade or two. It doesn't mean we stop trying but having mature technology that you don't need to invest a lot in to support a niche use case is a good thing, not a bad thing. > Then you have battery tech, opening lithium refining facilities, owning more of the supply chain. Everyone else will be paying extra for batteries for decades. There's no reason to believe that Tesla's suppliers will remain exclusively theirs unless they've signed massive longterm deals that the public is unaware of.

sumtechguy 4y ago
You can listen to what the CEO's of the 'big 3' are saying. Tesla has vertically integrated. The big 3 spent the past 50 years doing the opposite. They use many of the same ODM/OEMs for things with small twists here and there. The companies that make those things for that supply chain are behind tesla. For creating a new market like tesla is in you probably want vertical integration again to iterate on it. It was one of the 2 key innovations Ford had early on (as they were not the first car company). But as years went on it made less sense to do that. Now it is making sense again to do it.
michaelt 4y ago
> You think automakers don't know about software? Judging from my experience with cars' integrated sat-nav, speech recognition and bluetooth hands-free I would say most automakers do not consider good software to be a priority.
mavhc 4y ago
Yes, automakers outsourced all their software, someone else made the ECUs. https://www.teslarati.com/volkswagen-herbert-diess-third-party-software-not-an-option/ https://www.teslarati.com/volkswagen-herbert-diess-third-par... Tesla will be Tesla's supplier https://www.bloomberg.com/news/articles/2022-10-19/tesla-confirms-plans-to-build-lithium-refinery-in-texas https://www.bloomberg.com/news/articles/2022-10-19/tesla-con...

sumtechguy 4y ago

You can listen to what the CEO's of the 'big 3' are saying. Tesla has vertically integrated. The big 3 spent the past 50 years doing the opposite. They use many of the same ODM/OEMs for things with small twists here and there. The companies that make those things for that supply chain are behind tesla. For creating a new market like tesla is in you probably want vertical integration again to iterate on it. It was one of the 2 key innovations Ford had early on (as they were not the first car company). But as years went on it made less sense to do that. Now it is making sense again to do it.

michaelt 4y ago

> You think automakers don't know about software? Judging from my experience with cars' integrated sat-nav, speech recognition and bluetooth hands-free I would say most automakers do not consider good software to be a priority.

mavhc 4y ago

Yes, automakers outsourced all their software, someone else made the ECUs. https://www.teslarati.com/volkswagen-herbert-diess-third-party-software-not-an-option/ https://www.teslarati.com/volkswagen-herbert-diess-third-par... Tesla will be Tesla's supplier https://www.bloomberg.com/news/articles/2022-10-19/tesla-confirms-plans-to-build-lithium-refinery-in-texas https://www.bloomberg.com/news/articles/2022-10-19/tesla-con...