Tesla supplier demands $250k/day ransom for parts

[Friday]

IF I was a novelist and wanted to write about corporate collusion and sabotage, I might create a scenario like the lawsuit. Could a competitor be weaponizing a supply chain against another competitor, (allegedly, for fictions sake only of course).

Grok, are there any real world examples about a vendor being co-opted by a "competitor" against another competitor? Is it walking/talking like a duck yet?

Clear examples

• PoolCorp (FTC case, settled 2011): Pool Corporation, the dominant U.S. distributor of swimming-pool products, allegedly used its market power (often 30–50%+ of manufacturers’ sales, higher in local markets) to threaten manufacturers. If a manufacturer sold to a new competing distributor, PoolCorp would stop buying from that manufacturer across its network. Manufacturers representing >70% of pool-product sales then refused to supply the new rivals. The FTC charged this blocked entry, raised rivals’ costs, and harmed competition; PoolCorp settled and agreed not to condition purchases or pressure suppliers this way.
  
  ftc.gov
• Shein vs. Temu allegations (ongoing U.S. lawsuits, ~2023 onward): Temu has accused Shein of locking up shared ultra-fast-fashion suppliers (claiming 70–80% of relevant ones) via exclusive-dealing agreements, threats of fines/penalties, public penalty notices, “loyalty” pressures, and even physical detention of supplier representatives (summoning them on false pretenses, holding them for hours, seizing phones, and demanding Temu account credentials). The alleged goal was to block or severely limit suppliers from filling Temu orders, slowing Temu’s growth. Shein has denied the claims; the cases involve antitrust and related allegations of anticompetitive supply-chain tactics.
  
  supplychaindive.com
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• Exclusive ingredient/supply lockups: The FTC has challenged cases in which a firm secured long-term exclusive supply agreements for essential inputs (e.g., a drug maker locking up an ingredient needed for medicines) specifically to keep rivals from obtaining them, enabling large price increases. Similar exclusive-purchase or supply deals have been scrutinized when used to foreclose competitors’ access.
  

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[Alpine]

From what I have read about this issue, it's more like Walmart vs honey supplier but the difference being i don't see any fault with tesla where as Walmart was clearly sticking it to the supplier with their leverage.

Walmart started buying honey from a vendor and after a test run, they notified the vendor that they wanted to go nationwide which required a very substantial expansion of the honey vendor facilities and contracts. Vendor went all in with massive capital investments to satisfy Walmart's required volume. After completion, Walmart began lowering the price they were willing to pay. Vendor was essentially dependent on Walmart because of the debt owed for the expansion and having no other qualified buyer for the new capacity.

I don't know if this is true but I read that some of the conflict is about perhaps this supplier building out capacity for Tesla's initial cybertruck sales projections of 125k trucks a year which did not materialize and they are trying to get back at tesla.

 

[HLitt]

What interesting is that Angstrom Automotive acquired Anderton Casting, LLC in early 2025. The contract with Tesla is probably with Anderton. Who knows why Angstrom acquired Anderton and the ops to shut it down. I gotta think the contract with Tesla and Anderton has exist clauses, wind down clauses, equipment ownerhship and transfer clauses, and associated penalties. There must be a serious beef between Angstrom, a large Tier 1 automotive supplier to burn a bridge with Tesla...this will not look well for Angstrom.

My hunch it will get resolved early next week. But then where will the stamping machines go and how long to setup??

 

[Duran]

Really? I'm guessing you haven't experienced driving a Cybertruck for any length of time yet? I mean, nothing else compares.

After two+ years of ownership, I would do anything, including buying used if new ones weren't available, to get my butt in the seat of another Cybertruck. I feel like I couldn't live without one (even though I rationally know that's not true).

You've seen the bumper sticker, "Life's pretty dry without a boat"? Yeah, just replace "boat" with "Cybertruck".

100% agree!

 

[Alpine]

googling ceo, its lawsuit after lawsuit with them. They appear very litigous

 

[HaulingAss]

googling ceo, its lawsuit after lawsuit with them. They appear very litigous

Who would have thunk?

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