Viewing the relationship between vertical integration and product architecture (integrality and modularity) as the “mirroring” hypothesis, we examine the case of Tesla Motors. Besides dedicating an idiosyncratic architecture to battery issues and customers’ range anxiety, Tesla tailors its organization and strategy for anchoring with key stakeholders in the larger EV ecosystem that comprises charging stations, mobility services, IT, and energy providers. Our preliminary analysis demonstrates that, by and large, Tesla pursues a high degree of integrality in product architecture, and thus employs significant vertical integration. Such congruence offers initial support for the mirroring hypothesis in the electric vehicle industry.
CHEN, Y., CHOWDHURY, I., DONADA, C. and PEREZ, Y. (2018). Mirroring Hypothesis and Integrality: Evidence from Tesla Motors. In: Academy of Management Proceedings. Academy of Management.