Tesla is also aligning their verticals and ensuring that their supply chain will be able to support their large demand with the most critical part they need, batteries. Instead of relying on outsourcing and supplier innovation, Tesla is going it alone. The world's largest lithium-ion battery factory—a 10-million-square-foot so-called Gigafactory planned by Tesla Motors for 2017—will eventually produce more battery power each year than was produced globally in 2013 [Dil14]. The factory represents a significant investment for Tesla, and would make them the leading global provider of lithium-ion batteries when the factory reaches full production.
Additionally, Tesla again is innovating not only in their technologic capability, but also their infrastructure support for their product. Electric vehicles have been typically limited by one major factor, range. Only Tesla’s most expensive Model S (300-mile range at a cost of about $70,000) will compete with Internal Combustion Engine (ICE) vehicle range of 300 – 400 miles/tank. Plug-in Hybrid Electric Vehicle (PHEV)s, which use electricity only to run the powertrain for a limited range (i.e., 33 – 50 miles) and then a reserve gasoline tank to regenerate the electric powertrain beyond the all-electric-only range, effectively provide ranges up to 300 miles per charge and gasoline tank [Koo13]. Tesla has sought to remedy this problem with a significant investment of their own, the supercharger station. With the installation of the supercharger networks, Tesla Model S owners can charge their vehicles for free for life along the most prevalent highways in North America and Europe. To date there are 82 stations in the United States and 14 in Europe with significantly more planned. By 2015, 98% of the U.S. will be covered and within range of a supercharging station.