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

By Gabe Rodriguez Morrison
Tesla's vertical integration and its competitors
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.

How to Create Your Own Custom Cybertruck Wrap for Visualizations

By Karan Singh
Not a Tesla App

One of the upcoming features of the 2024 Tesla Holiday Update is the ability for Tesla owners to make custom wraps for their vehicles. The wraps will be displayed in the vehicle’s visualizations and in the Tesla app. You’ll also be able to select one of the wraps Tesla has provided if you prefer not to make or download your own.

This feature will roll out to the Cybertruck next week with the Holiday update, but it will be available for other models in the future as well.

Making your own wrap is super easy and takes just a few minutes. It doesn’t even require any special tools or software because Tesla provided a template.

Making a Custom Wrap

We’ll walk you through the steps to create your custom wrap. All you’ll need is an image editing program and an image editing program.

Download the Template

Tesla has all the details on their Github repository for Custom Wraps, but you can simply download the template below and open it in your favorite image editor like Adobe Photoshop, GIMP or even Windows Paint on Windows 11. Any software that supports layers will work.

Image Editor

Open the template in your image editor and create a new layer on top of it. You’ll want to edit on this new layer, not on the template layer, which we’ll hide later.

The template, in all its glory.
The template, in all its glory.
Not a Tesla App

Create the Wrap

Go ahead and work your artistic magic—here, we’ve taken a graffiti rendition of Not A Tesla App and our logo and placed it within the template's bounds.

Flex those creative muscles!
Flex those creative muscles!
Not a Tesla App

Hide the Template

Go ahead and hide the template layer - you can also delete the layer if you want. This standalone image doesn’t look like much, but this is what we need for the final step.

Looks a bit simple right?
Looks a bit simple right?
Not a Tesla App

Export

You’ll want to export the image with transparency - so it needs to be a .png file. You'll be good to go as long as it's the same dimensions as the template. We’ve gone ahead and exported our custom NATA wrap here - feel free to download it and let us know how it looks once you get the 2024.44.25 update.

The completed product.
The completed product.
Not a Tesla App

A couple of technical limitations:

  • The image must be 1024x768 pixels.

  • File Size max is 1MB.

  • You can’t use any special characters in the file name, and it must be shorter than 30 characters.

  • PNG is the only acceptable file format

  • You can load up to 10 images on your USB drive

Add Wrap to USB Drive

The last, and easiest step. Grab your USB drive, and create a folder called “Wraps” at the root level of the drive. Place your images in there, and you’re all set.

Load a Custom Wrap

Not a Tesla App

After placing the images on your USB drive and inserting it in your vehicle, you can then open Toybox > Paint Shop, and tap on Wrap. From there select your wrap from the custom list of images.

Tesla Confirms Custom Wraps & License Plate Visualization Coming to Other Models

By Karan Singh
Not a Tesla App

Tesla’s upcoming Holiday update introduces exciting new personalization features, giving you even more ways to customize your vehicle.

Building on the existing Colorizer feature, which lets you change the car’s color, the update will allow you to add a custom wrap and a license plate to the vehicle’s visualization. Both of these features will affect the vehicle's visualization on the screen and in the Tesla app.

While these features were originally announced to be exclusive to the Cybertruck, Tesla has now clarified and said that they will be available for other models in a future update. We expect them to be introduced for the Model 3 (new and old), Model Y, and the redesigned Model S and Model X.

Custom Wrap Visualization

Tesla announced custom wrap visualizations as part of the 2024 Holiday update for the Cybertruck. They’ve provided a template and instructions on how to design your own custom wrap and also included a few in-house designs, including the “unhinged” Doge wrap, the Cybertruck Graffiti wraps from the Baja Off-Road testing, and the Release Candidate wraps, amongst plenty of other simple ones. In all, it looks like Tesla will be providing 27 designs.

However, making your own wrap is actually very simple, and we’ll be providing instructions on how to create your own. Once these arrive for other vehicles, the instructions will likely be the same.

License Plate Visualization

Not a Tesla App

You’ll also be able to create custom license plates to show on your vehicle visualization. You’ll be able to choose custom text, and then also include a background - with plain colors, a stock image, or upload your own image.

If you have custom plates in real life, this is your chance to make your visualization perfectly match your vehicle.

Release for Other Models

Tesla hasn’t provided a timeline but said the feature would arrive in “future updates” in their post on X. It seems that it won’t be arriving with the upcoming Holiday update for all vehicles but will instead make its way to the S3XY lineup over the next few months.

We expect it to arrive sometime in early 2025. We’re super excited to see these come to more vehicles, so in the meantime, show us your best custom Cybertruck wrap on social media or our forums.

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