Part 5/14:
Tesla’s “cost out” strategies mirror its product development principles—improve while reducing expenses. For example, Tesla not only enhances functionalities—like customer self-service capabilities and insurance management—but also leverages granular data insights to optimize operations in real time.
A key aspect of Tesla's manufacturing strategy is the vertical integration of supply chain management, from parts sourcing to final assembly. Musk highlighted that Tesla's internal supply engineering team manages over 7,000 components, even during global supply chain disruptions like the semiconductor shortage or pandemic-related difficulties. This hands-on approach enables proactive quality control and cost management.