With the competition tight in the automotive industry, each company trying to get ahead of one another, sometimes it is easier to manufacture certain products inside the company rather than importing it in. The latest: the Model X’s second-row seats.
In August, Chief Executive Officer Elon Musk told investors it was difficult to make the seats, which he described as a “sculptural work of art, but a very tricky thing to get right.” They were so challenging that they led him to reduce the electric-car maker’s delivery forecast that month to as few as 50,000 from 55,000, which set off a wave of skepticism over his ambitious plans.
“We have substantially in-sourced the seats at this point,” Musk said Tuesday during the third-quarter earnings call with analysts. “Tesla is producing its own seats.”
Musk has long been a fan of doing things on his own as much as possible, such as building the world’s largest battery factory outside of Reno, Nevada, to streamline production and reduce costs to bring a more-affordable car — the Model 3 — to market. When an analyst asked Musk about the enormous costs of the automotive industry, Musk said that Tesla is becoming more capital-efficient.