Specifics of Automotive Companies' International Vertical Integration Strategies on The Home and Host Markets Exemplified by Tesla in the USA and China

The global automotive industry is in the process of transformation in 2016-2021 driven by innovation and environmental concerns. The traditional car market has stagnated since 2018, and the COVID-19 pandemic has further exacerbated this process. This is a serious challenge for global automakers who have alternative development strategies: vertical integration and horizontal integration. Major automakers have expanded their outsourcing strategy in recent years. This was the result of the development of modular technology. But these companies have lost their competitive edge in the emerging electric vehicle market. Tesla uses a different strategy and is building an international vertically integrated structure. Goal of the research is to reveal specifics of automotive companies' international vertical integration strategies on the home and host markets on the example of Tesla in the USA and China. In this paper we have reviewed theoretical and empirical approaches to the analysis of international vertical integration strategies, revealed specifics of international vertical integration strategies of automobile companies, analyzed specifics of automotive companies' international vertical integration strategies on the home and host markets on the example of Tesla in the USA and China, developed recommendations for improving automotive companies' international vertical integration strategies on the home and host markets and considered future researches and key limitations of the current research. We used a combination of quantitative and qualitative analysis methods to realize the goal of the study. We used statistical analysis, graphical analysis and economic analysis (calculating coefficients) as well as case study analysis.