Germany’s Parts Crucial to Tesla‘s Cars

October 2021

A new study carried out by the Dortmund University of Applied Arts and Sciences for business newspaper Handelsblatt shows that around one-third of the 3000 components of the Tesla Model 3 are made by German companies.

Tesla keeps its suppliers confidential, but the study succeeded in identifying parts from fifty German companies in the vehicle. They include not only giants like Bosch or Continental but 41 medium-sized “hidden champions” – enterprises with a low public profile that play a vital role in a given sector. The study praises these companies for their high degree of innovation.

“The pressure to innovate created by Tesla is good for the automotive sector,” Felix Kuhnert, automotive director at business consultants PwC, told Handelsblatt. “Products get better, are in greater demand and find buyers.”

Germany Trade & Invest automotive expert Stefan Di Bitonto says while Germany’s ongoing transition to electric vehicles will hurt some German-based suppliers, it will open opportunities for others.

“This is especially true in the battery’s added value, for example modular construction, battery packs and things like batter thermal management systems,” Di Bitonto explains. “What’s more, vehicles are not just going electric but digital. That’s created the trend toward controlling vehicle systems not by knobs and buttons but centrally, using systems software. That requires IT expertise, and the collection and use of data will become a new, lucrative business sector.”

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