Are all the Parts in Tesla Cars Built by Tesla?

No, not all the parts in Tesla cars are built by Tesla. Although Tesla designs and manufactures many components in-house, including the electric drivetrain, battery packs, and software systems, they rely on various suppliers for other parts. This includes components like seats, tires, brakes, suspension systems, and other miscellaneous parts that are sourced from different manufacturers.

Common Myths Debunked

One common myth is that Tesla should manufacture everything themselves. People often wonder why Tesla would not do this, given the success of other automakers in manufacturing their own components. However, the reality is quite different. Let's take a look at the automotive industry as a whole:

Does Ford manufacture all their own vehicle parts?

Does GM manufacture all their own vehicle parts?

Does Honda manufacture all their own vehicle parts?

Does BMW manufacture all their own vehicle parts?

Most automakers make their own engines as a point of pride, though they may source these elsewhere when necessary. Fewer manufacturers make their own transmissions, and this seems to be less common today. In extreme cases, some automakers simply rebadge vehicles, such as the first Honda small utility, which was a rebadged Isuzu Trooper, as I recall. Similarly, Tesla makes their own electric motors and assembles battery packs from Panasonic cells.

Supply Chain Adjustments

There are several reasons why Tesla does not manufacturer all their parts in-house. First, it is too many technologies to deal with. Managing a complex ecosystem of multiple factories requires significant resources and expertise. Second, producing everything in-house would make it more difficult to maintain a competitive cost structure, which is crucial in the automotive industry.

Key Components and Suppliers

While Tesla is highly innovative in some areas, they do not have the capacity or necessity to manufacture every single component themselves. For example, Tesla's original Roadster used a Lotus chassis, and many parts of the Model S are used on M-B (Mercedes-Benz) cars. People have identified the turn signal stalk and some claim the whole front suspension matches a M-B model. This shares some components, which could mean that Tesla's weightier vehicles might have different suspension requirements.

Another interesting aspect is the seat manufacturing. Since seats are bulky and expensive to ship, producing them in-house might be cost-effective, or at least the producer should be nearby. Tesla's seats are likely designed to Tesla's specifications but are still made by a different manufacturer, which is cost-efficient compared to producing them in-house.

The Cost of Manufacturing

People often focus on the hours spent manufacturing each car, but this can greatly depend on how many parts are made in-house versus those sourced externally. Moreover, there are significant differences between manufacturing a gasoline car versus an electric car. What really matters is the total cost to manufacture. Each company should decide on the best approach for their specific needs and goals, and some may even match the resourcefulness of Henry Ford.

In conclusion, while Tesla is highly innovative and capable of producing many critical components in-house, it is not reasonable to expect them to manufacture all the parts of a car themselves. Collaboration with skilled suppliers is key in maintaining efficiency, cost-effectiveness, and quality.