slide 1
How Tesla’s Vertical Integration Drives Its Success
Opening Hook: “Imagine a company that controls its entire journey—from raw materials to the car
you drive.”
Tesla’s vertical integration isn’t just a strategy—it’s a revolution. Let’s dive into how Tesla uses it to
dominate the EV market.
Visuals: A Tesla supply chain graphic shaped like a car.
Slide 2
What is Vertical Integration?
• Engaging Explanation:
• Vertical integration is like owning every piece of the puzzle. Tesla produces batteries, builds cars,
and even sells them directly to you. It skips the middleman to save costs and improve quality.
Analogy: “It’s like owning the farm, the bakery, and the delivery truck when selling bread!”
Visuals: A puzzle or flowchart showing Tesla’s control over its supply chain.
Slide 3
Tesla’s Strategic Benefits
• Story Approach:
Cost Savings: Gigafactories produce batteries cheaper than buying from suppliers.
• Innovation: Tesla doesn’t wait for others—they create breakthroughs in-house.
• Reliability: No supplier delays—Tesla keeps production moving.
• Customer Connection: They sell cars directly, so no dealership drama.
Visuals: Four icons (money, innovation lightbulb, supply chain, happy customer).
Slide 5
Does Vertical Integration Work Everywhere?
• Simple Breakdown:
• When It Works: Industries with cutting-edge R&D (like EVs and tech).
• When It Struggles: Mature industries with well-established suppliers.
Fun Insight: “It’s expensive—so, don’t expect vertical integration in industries like fast food
anytime soon!”
Visuals: A green checkmark for Tesla’s industry and a red cross for unsuitable industries.
Slide 6
Wrap-Up & Class Takeaways
• Interactive Summary:
Ask: “What’s the biggest challenge of vertical integration?” (Hint: Cost!)
Key Points to Leave the Class Thinking:
• Tesla’s integration ensures cost control, innovation, and customer loyalty.
• It’s not for every industry—success depends on the market’s needs and challenges.
Visuals: A Tesla car “powered” by keywords like innovation, control, and strategy.
