[Pywarrior]

A key elements of successful outsourcing are defining quality standards and remediation processes in the case the supplier quality changes and fails to meet those standards. Outsourcing can often and if managed well likely lead to higher quality components. A successful automotive supply chain is deeply rooted in the division and specialization of labor in the supply chain. Partnering with Recaro is one option that would have resulted in high quality seats built to OEM spec, it would have also brought a lot of positive media, it would have allowed cross marketing between the companies, it would have allowed Tesla purchasing executives and engineers to collaborate with experts in seat engineering and manufacturing. They could have also shared all the warranty costs with Recaro or whatever supplier they chose. Using suppliers does not automatically mean lower quality. My bet is on internal Tesla disorganization and or low standards that caused the supplier relationship to fail. Recaro for reference: https://en.recaro.com/business-areas/automotive-seating.html