- Nexan Insights
- Posts
- The Art of Moving Batteries
The Art of Moving Batteries
Tesla's Dance with Logistics and Sustainability


1. Life Cycle Analysis Tools - The Battery Detective Story
Imagine every car part as a character in a massive soap opera. Each piece—from the battery to the bolts—has its own story: where it came from, what it’s made of, and where it will go once it’s retired. To keep track of all these moving parts and evaluate their entire "life cycle," Tesla uses tools like SimaPro, GaBi, and openLCA. These aren’t just fancy names; they are the investigative detectives of every battery and component Tesla uses.
Tesla’s life cycle analysis (LCA) tells us how sustainable each part is, not just at birth, but during its full existence—through production, usage, and end-of-life recycling. The catch? Getting software to talk to each other is like asking a cat to play nice with a laser pointer. So, Tesla uses multiple LCAs to cross-check every number and find weak spots.
Comparison of Transport and Compliance Costs Across Global Regions

Life Cycle Analysis Tools - The Battery Detective Story

2. The Logistics Jigsaw - From Ocean to Driveway
Now, let’s talk about logistics. You'd think shipping things from A to B is easy. But when A is a production site in Australia and B is a final consumer in Germany, and C is compliance in four different countries—well, now you have a puzzle.
Tesla’s approach to this is like conducting an orchestra, with logistics software like Kinaxis playing the role of the maestro. With Kinaxis, Tesla can visualize the entire journey of a battery, from the moment it leaves the supplier to its installation in a vehicle. This end-to-end visibility means Tesla can reduce waste, save on costs, and ensure that their supply chain is always performing at its peak. It’s like watching the journey of each battery unfold in real time, as if it were a live-streamed concert—Kinaxis ensures every note hits just right, guiding the logistics flow with a mix of responsiveness and foresight.
Every battery has to move safely, without exploding (no pressure), and cost-efficiently—because no one likes an unnecessarily pricey battery journey. The whole thing’s done in real time, watching the journey from warehouse to car as if it were a Netflix special.
And here’s the kicker: regulatory compliance. Different countries mean different rules. Tesla must be sure that each battery shipment is compliant, down to the last regulation. Software tools help predict regulations, like modern-day oracles ensuring that batteries don’t get stuck at customs in Hamburg for three weeks.
Key Performance Indicators in Tesla's Logistics: Scores Across Compliance, Risks, Expansion, and Sustainability

The Logistics Jigsaw - From Ocean to Driveway

3. Efficiency and Outsourcing - When to Hold 'Em and When to Fold 'Em
Efficiency is the name of the game for Tesla’s logistics operations. Imagine that Tesla is playing a game of logistical poker. Sometimes, they’ll do work in-house if it makes sense (like analyzing a small, simple supply chain). Other times, they outsource to specialized firms. Most of their analysis work, in fact, is handled by third parties like SimaPro, GaBi, and openLCA—meaning they’re not afraid to "fold 'em" when it’s better to let someone else take over.
By outsourcing roughly 80% of LCA work, Tesla saves its core energy for things it does best—like building electric vehicles that change the world. To make sure all this work gets done without any hiccups, they compare the results from multiple providers and select tools that match KPIs like material science, manufacturing process impacts, efficiency during battery usage, recycling effectiveness, and optimal transportation routes.
Here’s a look at Tesla’s approach to efficiency and outsourcing:
Table 1: Outsourcing Percentage and Tools Used for Key Activities

Table 2 : Analysis of Key Processes - In-House vs Outsourced

Efficiency and Outsourcing - When to Hold 'Em and When to Fold 'Em

4. Challenges in Global Communication - The Tower of Babel (But for Logistics Software)
One of Tesla’s biggest challenges is that software in different regions just doesn't talk to each other. Imagine trying to solve a massive jigsaw puzzle with pieces from different manufacturers—some are cardboard, some are wood, and a few are virtual (just to keep you guessing). This puzzle is what Tesla’s global logistics network looks like, with different tools providing separate views that can make it hard to see the complete picture.
From the US to Australia to Germany, each logistics chain has different rules, different needs, and different software. Imagine each stakeholder using a different version of a software and none of the files being compatible. Tesla’s current solution? Over-communicate, use three or four separate analysis tools, and hope the languages (literal and coding) can somehow work it all out.
Challenges in Global Communication - The Tower of Babel (But for Logistics Software)

Tesla's Logistics Odyssey - A Never-Ending Roadmap
Tesla's journey in building a perfect logistics and LCA framework is, quite literally, a work in progress. It’s like trying to reach the top of a mountain where the peak keeps moving further up. They want a unified global solution for their software, sustainability, and compliance needs—but right now, that doesn’t exist. Instead, they’re managing with multiple tools, complex logistics planning, and a bit of ingenuity.
The complexity of moving car parts, tracking life cycles, and optimizing every route and resource is about creating a greener planet without sacrificing cost or efficiency. It’s an endeavor that’s full of invisible complexities that make up our visible future.
Tesla's Logistics Odyssey - A Never-Ending Roadmap

