November 27, 2020

MSVW-Auto

Beyond Automotive

How Tesla increased revenue

2 min read
How Tesla increased revenue

Tesla Motors (TSLA stock) Supply Chain Strategy Tesla’s two main factories are located in California (Freemont’s headquarters, the so-called Tesla factory) and the Netherlands (Tilburg). The latter branch is intended for production in Europe only, although all the most important chassis and battery operations are performed in California. The level of vertical integration is very high, as only a few important parts are purchased from third parties. To make a Model S, Tesla needs over 2,000 parts from 300 suppliers around the world. Many of them have exclusive partnerships with Californian companies, especially those that make batteries and other key components that rely on short-term deals.

The reason is that Tesla always looks for other suppliers or manufactures these parts in-house (vertical integration), even if there are problems on the production line. His partners include Daimler and Toyota, who helped develop the batteries and engines used in production vehicles. Panasonic has been the sole supplier of battery cells required for battery pack manufacturing since 2010. In 2011, a new generation of batteries was born as a result of a partnership between the two companies. In 2013, Panasonic signed another deal to produce 1.8 billion batteries for Tesla through 2017.

Good products to attract more customers

The network is open to other electric vehicles if they pay for energy usage, but it’s free for all Tesla owners. Another difference between Tesla and the traditional automakers is how the company makes money. OEMs typically rely solely on vehicle sales to make money. In addition to selling vehicles, California companies make money in two ways that other automakers have never used. The organization generates cash flow by selling power trains and electrical engineering to competitors and selling ZEV credits to other OEMs.

Traditionally, automotive companies have partnered and partnered with one another, and each part of the contract is dedicated to a specific task. R&D functions are often shared, or companies work together to reduce costs and share platforms, engines or components. All of these facts are changing the way cars are tested, making it impossible for OEMs to cheat emissions and provide customers with more accurate emissions and fuel consumption figures.

Another emerging trend in the industry is cars, which are increasingly interconnected and able to drive on their own without human intervention. The brand positioning also helped the company to get success. Many market experts viewed the stock price to reach $ 7000 in the next ten years. Tesla Motors is a successful example of a value-driven business. The California-based company is committed to always providing the best technology built into its products. You can get more information from tesla stock news.

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