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This is classic Apple strategy. Apple now makes its own chips, buys up memory by the billions, etc. It uses its economies of scale to further solidify its moat.


Actually it's classic Henry Ford. The first ford factories used to make just about everything on site, including things like windscreens. It only made sense to go back to suppliers when suppliers were large and reliable enough to do so.


Its called vertical integration, and its been around for a long time before Apple.


oh i know but Elon seems to fancy himself Jobs.


I don't think so. If you listen to them both speak about their companies, Jobs was more interested in revolutionizing how humans use technology. Musk is more interested in saving the human race from itself. Solar City is about renewable energy, Tesla is about vehicle safety and renewable energy, and SpaceX is about establishing life off of earth.

You are certainly right to draw a parallel--they both want to change the world--but Musk literally wants to evolve humanity.


>Musk is more interested in saving the human race

You know, I watch his talks (because I'm interested in the work his company's do) and listen to the investor's quarterly conference calls (because I own a small stake in TSLA) and I don't understand where the hero worship comes from.

To me, Musk comes off as another shrewd business man, almost crossing over into the slick/shady end of the spectrum sometimes.


I think the term is Vertical Integration.




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