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Tesla had so much trouble with the Model X seats that it's going to make them itself

Tesla reported third-quarter earnings on Tuesday. The company lost slightly more per share than analysts expected, but revenue met expectations and the company said it still expects to deliver between 17,000 and 19,000, cars this year.

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In the same statement, Tesla made an interesting admission:

In other words, if you can't get it done, do it yourself.

The Model X is Tesla recently launched SUV, and prior to its debut, CEO Elon Musk admitted that what he termed "sculptural" back seats were causing some issues with production. Clearly the situation was bad enough to prompt Tesla to take the unusual step of in-sourcing manufacturing. 

Seats are a component that automakers typically have developed by a supplier, although much of the design work may be done by an OEM's own staff.

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Is this a good thing for Tesla?

It depends. The electric car maker has defied critics simply by continuing to exist. But as it grows, clear problems with its manufacturing processes are coming to light. This is still an automaker building one car in one factory.

And that factory is in Northern California, pretty far from the auto-making strongholds of the Midwest and the South, where the bulk of the US supply chain is located.

Tesla needs to get the Model X right, so if it wants to build its own seats, that's probably a logical decision. But it does add to the work that Tesla has to do to get its cars out the door.

Tesla Elon Musk
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