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SPANISH 2: Tackling Supply Chain Challenges of Tesla Model 3

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Describe & discuss Tesla’s Model 3 vertically integrated supply chain and its appropriateness to the car manufacturing industry. Also, please outline the benefits and drawbacks of using such a model... . The main difference between a pure electric vehicle (EV) and a conventional car is the EV’s powertrain includes an electric motor and a battery pack, instead of an engine and a transmission. While the concept of the electric vehicle was not new, EVs were entering the mainstream market only in recent years, thanks to the improved battery technology, longer range, faster charging, and lower production costs. Based on the manufacturer specification information, most EVs could travel between 80 and 320 miles on a single charge, depending on the vehicle type and the driving conditions. In 2016 there were about 30 different EV offerings in the U.S., with total sales of 159,139 vehicles. The EV sales in the U.S. had grown at a 32% compound annual growth rate (CAGR) between 2012 and 2016 (however, it should be noted that the EV only accounted for 0.09% of the total vehicle sales in the U.S in 2016). Globally, the growth was even stronger. Following a 72% jump in 2015, 2016 saw a 41% global increase in sales to reach 777,497 electric vehicles2. In July 2017, the Sweden-based Volvo announced that the new vehicles launched after 2019 would be electric or hybrid vehicles [Show More]

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