Dilemma of Automotive Vertical Integration
It is a rule-of-thumb that manufacturers should vertically integrate only when products and markets mature, so they can confidently shave off the last pennies of cost. One exception is when shortages loom: Tesla built its battery gigafactory fast using proven Panasonic technology. However, many suppliers now build battery gigafactories. The boom in electric vehicles land, water and air has put the battery and traction motor businesses back to rapid change so Tesla now sources many batteries,…


