Gigafactory Vertical Integration

312 Words1 Page

The automotive industry is one of the most commonly known industries to be built on the concept of vertical integration – one company owning both the manufacturing and as much of the supply chain that leads to the factory floor as possible. Tesla’s recent news of its “Gigafactory” is an excellent example of vertical integration. It plans to build batteries for its forthcoming electric vehicle lines in house. Tesla released information on its Gigafactory in June 2014. The company expects to begin cell production in 2017. By 2020, the Gigafactory is estimated to reach full capacity and produce more lithium ion batteries annually than were produced worldwide in 2013. In cooperation with Panasonic and other strategic partners, the Gigafactory will

Open Document