Tesla announced that it was building a "Gigafactory" to supply all of the batteries needed for its cars. this is an example of vertical integration.
Vertical integration is a term refers when a company starts to take over the sub production processes under their name or control itself. That is, when a company itself starts to produce the components needed for the main products of the company.
Here, Tesla is an automobile manufacturer but is planning to build a Gigafactory to for the supply of batteries needed for the production automobiles. This is a best example for vertical integration.
The company will integrate and own the supply chain by themselves.
They start to acquire the development of important parts of the main products also. This will make company more independent and financially stable.
Learn more about vertical integration at https://brainly.com/question/19815172
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