Part 6/11:
An essential pillar of Tesla’s strategy is controlling every component of the AI and manufacturing ecosystem. Instead of the traditional approach—building chips in Taiwan, then shipping and assembling elsewhere—Tesla aims for vertical integration. This includes manufacturing chips locally in Texas, packaging them efficiently, and integrating them directly into their robots and vehicles.
This "holistic" control reduces delays, minimizes supply chain risks, and speeds up innovation cycles. Musk asserts that how quickly Tesla can adapt, tweak, and produce new chips will give it a decisive advantage over rivals who rely on the more fragmented traditional supply chains.