Tesla's vertical integration and efficiency show why they're the leader in EVs

August 1, 2022

By Gabe Rodriguez Morrison

Tesla's vertical integration and its competitors

Not a Tesla App

Supply chain issues brought on by the pandemic have been particularly challenging for the automotive sector. A global chip shortage among an onslaught of supply chain obstacles have adversely affected the entire industry. Tesla's vertically integrated strategy proved to be very advantageous when facing these supply chain challenges.

Tesla's insistence on vertical integration used to be one of the main reasons the company struggled to become profitable and reach volume production. Now, it has allowed the company to scale rapidly while the broader automotive industry is down amidst a supply chain disaster.

The conventional automotive business model has traditionally concentrated on design and final assembly while largely outsourcing to suppliers. This strategy left them extremely vulnerable to supply chain turmoil.

In the past, automakers outsourced as much as possible and mainly focused on supply chain management. In the short term, this strategy reduced production costs but in the long term, legacy automakers lost the ability to adapt, innovate and advance technology.

Automotive manufacturing has typically relied on third party suppliers which has led to supply chain contingency and reliance on external companies. This business model has been successful for a long time due to the maturity of the internal combustion engine and a lack of need for innovation.

Tesla recognized the stagnant supply chain of the automotive industry and revolutionized it by adopting a vertically integrated strategy.

Tesla is a chain of startups
- Elon Musk

In recent years, Tesla has defied the conventional business model, reducing supply chain needs and reliance on other companies.

Tesla has vertically integrated many production steps, from battery production to electric powertrain production and self-driving software. According to Tesla CEO Elon Musk, Tesla is a "chain of startups."

This strategy allowed Tesla to avoid shortages of batteries, which have hindered legacy automakers from reaching volume production of electric cars. Before legacy automakers began investing in electric vehicle manufacturing, Tesla partnered with Panasonic to build its first gigafactory to produce batteries. Now, the gigafactory ensures a reliable supply of batteries.

Lucid Motors, a newer EV automaker, has also adopted a more vertically integrated business model. CEO Peter Rawlinson says that gives them a huge advantage in the modern EV technology race.

In an interview, Rawlinson stated, “The electric powertrain cannot be bought off the shelf at a world-class standard, it is not a commodity. This is a technology race and the market doesn’t see it yet."

Tesla's in-house software development is perhaps their biggest advantage over its competitors. As a Silicon Valley born company, Tesla has never outsourced their software. They have instead developed a proprietary self-driving software that is improved by collecting data from Tesla's network of over one million beta testers.

Ford CEO Jim Farley emphasized the company's need to move away from the “catalog engineering” business model at a conference earlier this year, saying "The most important thing is we vertically integrate."

Tesla is potentially going a step further to vertically integrate their supply chain. In light of the skyrocketing prices of lithium, Tesla may plan to get into the lithium mining and refining business. Tesla is considering mining some of its own raw materials for the same reasons that they developed their own batteries, produced their own electric motors and built their own computer chip and software for autonomous driving.

Tesla's pace of innovation and lead in the industry has become clear as the traditional business model of outsourcing components and software to cut production costs is quickly becoming outdated.

Tesla Gains Support for Australian Battery Recycling Facility

June 6, 2025

By Karan Singh

Electrek.co

Tesla’s recent focus on expanding and vertically integrating its battery production is beginning to take global steps, starting with a battery recycling and service center in South Australia. In Marion, a suburb of Adelaide, the council recently voted in favor of a proposal that would see contaminated public land developed and leased to Tesla.

The move promises local jobs and environmental remediation but has garnered a lot of public debate focused on Elon’s moves outside his role as CEO.

The proposal involves a site that’s currently unusable for recreation due to chemical contamination. A local developer plans to acquire and remediate the land, constructing a new facility specifically for Tesla. This site would reportedly serve two purposes: recycling old lithium-ion batteries and serving as a Tesla Service Center.

Tesla’s Commitment to Recycling

Tesla recently announced its intention to ramp up its battery recycling and repurposing efforts. During the Q1 2025 Earnings Call, Tesla’s executives highlighted substantial progress. Tesla had recycled enough materials in Q1 2025 to build approximately 21,000 Model Y RWD vehicles, representing a 136% year-over-year increase from Q1 2024.

Dedicated regional hubs like this one would be a logical next step in expanding the recycling loop and furthering Tesla’s vertical integration while also reducing its reliance on new materials. In addition, local sources also mentioned that Tesla could be repurposing older lithium-ion batteries for other purposes, including their inclusion in stationary battery storage systems like Powerwall or Megapack.

Of course, the facility also has major benefits for the local community, including creating around 100 local jobs, as well as injecting approximately $56 million into the local economy. Further, developing the contaminated land as a renewable facility is one of the safest ways to use the land that’s been sealed off from the public for nearly a decade.

Elon’s Image

The proposal isn’t without its critics. Local opposition was voiced during community consultations, with most of the negative sentiment directed towards Elon rather than the facility itself. Despite these complaints, the local council elected to proceed, arguing that tangible economic and environmental benefits far outweigh any perceived geopolitical or symbolic harm that shutting down the project could cause.

With the council’s endorsement on record, the proposal now moves to the South Australian state government for approvals regarding the change in land classification.

Tesla Update 2025.20 Lets You Delete Multiple Dashcam Videos at Once

June 6, 2025

By Karan Singh

max_bracco/X

Tesla’s software updates often hide some undocumented features alongside the official release notes, and software update 2025.20 is no exception. With this update, Tesla has introduced a welcome quality-of-life improvement for the in-vehicle Dashcam Viewer. Users now have the ability to select and delete multiple clips at once (thanks, Max!). However, this addition is limited to the updated Dashcam Viewer for Ryzen-based vehicles.

While it may seem a small change, if you wanted to clear out your Dashcam clips, you’d have to either delete them one by one in the vehicle or remove your Dashcam USB drive and take it to a computer to erase all the clips at once. For those who frequently see Sentry Mode notifications or often record clips with their Dashcam, this is a useful addition.

While the Tesla app now also supports viewing videos from your Dashcam and Sentry Mode, it still doesn’t support the two B-pillar cameras or deleting multiple clips at once. However, you can swipe on a clip to delete it.

How to Delete Multiple Videos

Using this new feature is straightforward.

Open the Dashcam Viewer in your vehicle while parked.
Bring up the menu that shows your various clips and press the three dots at the top right corner of the clip list.
You can now check off each video you’d like to delete before tapping the delete button underneath.

#Undocumented Feature in 2025.20
- You can now delete multiple Dashcam Clips at once by selecting the ones you want to delete. pic.twitter.com/QFVL7xMkQo
— Max Bracco (@max_bracco) June 5, 2025

Feature Availability

This feature is currently limited to vehicles that have received the updated Dashcam viewer - which means vehicles equipped with AMD Ryzen processors (how to tell if you have Intel or AMD). This includes all Model 3 and Model Y vehicles with AMD Ryzen, as well as the 2021+ Model S and Model X vehicles.

Unfortunately, since the Cybertruck does not yet have access to the updated Dashcam viewer or support for the additional two cameras in Sentry Mode, it has not received this feature yet either.

This undocumented feature is a very welcomed addition for many users who carefully manage their Dashcam and Sentry Mode videos.