Part 7/11:
Looking ahead, Musk foresees material scarcity as a major limiting factor for Tesla’s production. Beyond batteries, the company requires significant quantities of steel, aluminum, and other raw materials. Ensuring a resilient and efficient supply chain will be crucial as Tesla aims to increase production volumes.
He mentions that Tesla’s vertical integration is partly driven by the necessity to secure critical materials and components. For example, Tesla manufactures its own seats because working with external suppliers introduces delays, costs, and quality issues. Musk emphasizes that Tesla will continue to vertically integrate into areas where supply chain constraints slow growth.