Elon Musk sets sights on streamlining supply chain

There could be more supply chain consolidation in the future for car maker Tesla Inc.

It’s no secret that Tesla is a fan of vertical integration — with its acquisition of Solar City and building of the Tesla Gigawatt Factory as just a few examples of supply chain consolidation. And Tesla’s CEO Elon Musk hinted at the possibility of more consolidation during the company’s fourth-quarter earnings call last week.

During the call, Musk mentioned the difficulties of dealing with a global supply chain and how seamless production for Tesla cars requires all automotive suppliers to also be operating seamlessly, insinuating that consolidating manufacturing to Tesla facilities is in the future. See more analysis of Tesla’s possible next moves is our new sister publication, Mobility Buzz.


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