Covid had proved to be a very difficult time for the auto sector. Global chip shortage, Supply chain issues and a pernicious pandemic ruled the industry. However, Tesla adopted an unorthodox strategy in the tough times— vertical integration. The conventional auto wisdom is that manufacturers should concentrate on design and final assembly. The rest should be managed by the suppliers. Contrary to this, Tesla believes in “The fewer the components you need right now, the better.” Tesla strictly controls the technology inside the car. “Tesla has fewer boxes,” said Phil Amsrud, a senior principal analyst at IHS Markit, a research firm.
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