Quote:
Originally Posted by Street Pharmacist
A mature manufacturer does well by using just in time sourcing for all their parts to keep overhead low vs a newcomer who needs the security of their own supply chain to avoid being priced out of the market. Tesla integrated vertically not because Musk is a genius, but because there's no way to compete for parts with the big boys
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JIT screwed them over when they canceled all their orders and were put on the end of the line when they realized there might be a bigger demand for their product than they anticipated and had to reorder.
Tesla was also able to reprogram chips that are more commonly available to work for their vehicles. EVs also tend to use more chips than a ICE vehicle.
I get that when you are considered 'mature', these things will create issues with the supply chain being a mess, but Tesla is just gaining a bigger lead each quarter while Ford, GM and others keep bumbling around trying to secure parts.
No matter how many '$10 billion investments' they announce, it all means jack if they can't actually build some vehicles.