Tesla has already seen phenomenal growth in the past few years and is likely to continue this rapid rate of growth in the next few years. Tesla’s suppliers are likely going to benefit significantly from this growth. Buying their stock could be a great opportunity.
Tesla’s main suppliers are Samsung, Qualcomm, Panasonic, Micron, and Ganfeng Lithium. Samsung supplies microchips for self-driving, Qualcomm supplies chips for over-the-air technology, Micron supplies memory chips, Panasonic supplies batteries, and Ganfeng Lithium provides lithium for the batteries.
Who makes Tesla’s microchips?
Samsung
One of the most important suppliers for Tesla is Samsung. Samsung is a South Korean manufacturing conglomerate founded in 1938 and headquartered in Seoul. It is best known for its affiliate Samsung Electronics, which is the largest consumer electronics and microchip maker in the world by revenue.
Samsung Electronics will manufacture Tesla’s next-generation hardware (HW 4.0) for its fully self-driving technology. The chip is integral to Tesla’s plans to achieve fully autonomous driving, which will also enable Telsa to release a network of unmanned robotaxis. Samsung managed to beat out TSMC in the bid to make the chips, in part due to Samsung’s higher manufacturing capacity and lower cost. Tesla chose to go with a 7nm architecture instead of the more compact 5nm architecture for its high production yield, more stable function, and better heat dissipation.
Qualcomm
Qualcomm is an American technology company founded in 1985 and headquartered in San Diego, California. It specializes in designing and selling semiconductors and software related to wireless technology. It is best known for its development of 5G technology for vehicles, laptops, wi-fi, and other smart devices.
Qualcomm supplies Tesla’s 5G microchips and software to enable over-the-air software updates to improve existing features and add new ones over Wi-Fi. Qualcomm provides capabilities in telematics (a method of monitoring vehicles’ movements and onboard diagnostics), infotainment, and autonomous driving.
Micron
Micron is an American technology company founded in 1978 and headquartered in Boise, Idaho. Micron develops, designs, and manufactures memory and storage products based on semiconductor technology such as DRAM and NAND. DRAM provides short-term memory for PCs and servers, and NAND provides long-term memory for storage.
Electric vehicles have essentially morphed into data centers on wheels due to their high memory and storage requirements for self-driving technology and infotainment system. Micron is working with Qualcomm to develop a next-generation chip for highly advanced in-vehicle computer systems. Micron also has some of the best DRAM chips on the market for automotive applications, such as processing data for cameras and sensors, as well as AI technology.
Who are Tesla’s battery suppliers?
Panasonic
Panasonic is a Japanese conglomerate founded in 1918 and headquartered in Kadoma, Osaka. It is one of the world’s largest manufacturers of consumer electronics, including rechargeable batteries.
Another vital supplier for Tesla is Panasonic; a major supplier of batteries to Tesla. The partnership started when Telsa first built Gigafactory Nevada, where Panasonic started producing battery cells on-site. Tesla has also been collaborating with Panasonic to improve cost and efficiency. The technology will enable longer-range, lighter, and more efficient vehicles. Panasonic will be producing the 4680, Tesla’s new generation of batteries.
LG Chem
LG Chem, a South Korean company, is another one of Tesla’s main suppliers. LG Chem produces battery cells for Tesla’s Model 3 and Model Y electric vehicles. The cells are produced at LG Chem’s factory in Poland and are shipped to Tesla’s assembly plant in California. LG Chem is also one of the world’s largest suppliers of lithium-ion batteries for electric vehicles, and they supply batteries to other automakers as well.
CATL
Contemporary Amperex Technology Co., Ltd (CATL) is a Chinese company that produces batteries for electric vehicles. CATL is a major supplier of batteries to Tesla, and they have recently signed a two-year deal to supply Tesla with batteries for their Model 3 electric vehicles in China. CATL also supplies batteries to other automakers such as BMW and Volkswagen.
Who are Tesla’s parts and materials suppliers?
ATI
Allegheny Technologies Incorporated (ATI) is an American specialty materials and components producer that supplies Tesla with specialty metals used in the production of their electric vehicles. ATI provides Tesla with high-performance materials like nickel-based superalloys and titanium. These materials are used in various parts of Tesla’s electric vehicles, including the battery pack and motor.
BAIC Group
Beijing Automotive Group Co., Ltd (BAIC Group) is a Chinese automaker that supplies parts and components to Tesla. BAIC supplies Tesla with body parts for the Model S and Model X electric vehicles. BAIC also produces their electric vehicles, including the EC-Series, in partnership with Daimler and Hyundai.
ZF Friedrichshafen
ZF Friedrichshafen is a German company that produces transmissions, steering systems, and other automotive components. ZF Friedrichshafen supplies Tesla with electric power steering systems used in their electric vehicles. The power steering systems are produced at ZF’s plant in the United States and are shipped to Tesla’s assembly plant in California.
Brembo
Brembo is an Italian manufacturer of braking systems for cars, motorcycles, and commercial vehicles. Brembo supplies Tesla with braking systems for their electric vehicles. Brembo’s braking systems are designed to provide superior performance, durability, and reliability, which is essential for electric vehicles.
Who are Tesla’s lithium suppliers?
Ganfeng Lithium
There are many lithium suppliers for Tesla, but the most significant is Ganfeng Lithium, the world’s third largest and China’s largest lithium producer. They offer over 40 lithium compounds but specialize in battery-related lithium.
Ganfeng and Tesla have signed a three-year agreement to supply battery-grade lithium to Tesla. Most of this will be going to Tesla’s Gigafactory Shanghai, which accounts for half of its global production.
Conclusion
In conclusion, Tesla relies on a global network of suppliers and partners to produce the parts and materials necessary for their electric vehicles, energy storage systems, and solar panels. Some of Tesla’s main suppliers include Panasonic, LG Chem, CATL, ATI, BAIC Group, ZF Friedrichshafen, and Brembo. By partnering with suppliers and partners around the world, Tesla is able to access the materials and components necessary to produce high-quality electric vehicles and energy storage systems. This global network of suppliers and partners is essential to the success of Tesla and the growth of the electric vehicle industry as a whole.
