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Tesla, the electric car company, has a production model that is far more vertically integrated than General Motors and Ford Motor. It produces a much

Tesla, the electric car company, has a production model that is far more vertically integrated than

General Motors and Ford Motor. It produces a much greater share of its own critical components,

both on the hardware side, such as batteries and on the software side, such as onboard computer

systems, than GM and Ford.

Can you provide an economic rationale for why Tesla is much more vertically integrated than GM and Ford?

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