Tesla Inc (NASDAQ: TSLA), one of America’s largest public companies, has moved a notch higher after it was announced that the company is set to incorporate blockchain technology in its chain of supply. The news was revealed on Tuesday by a blockchain logistics provider CargoSmart.
According to the company, Tesla has been testing the feasibility application of blockchain technology at the Shanghai International Port Group. In the trials, the app reduced the cargo release time, which made it easier for Tesla to take ownership of the goods as soon as they are offloaded.
The pilot scheme was conducted in the last month of the last quarter, 2019. A time when Tesla was moving fast to deliver units due to increased demand in the Asian region.
Tesla and Blockchain Tech
In the application, Tesla shared relevant shipping documents with all the involved parties. As a result, there was no need for a manual countercheck of the goods once they arrived at the port.
CargoSmart said that “the blockchain technology will accelerate Tesla’s cargo pick up procedures on a trusted and secure platform”.
The head of COSCO logistics division Wu Yu stated:
“Showcased significant efficiency gains not only in the cargo release process but also for downstream supply chain planning by presenting a single source of truth for documentation for all involved parties.”
Occasionally the cargo release time is delayed or even largely disruptive if a waybill is lost. This is because the authorities at the port cannot hand over the goods without the documents on all parties corresponding.
Way forward, since the pilot trial was successful, CargoSmart said it is now working at venturing other Asian ports. Some of the ports will include Laem Chabang, Thailand, Qingdao, China.
Besides that, the company is also looking forward to creating a consortium that is owned by the shipping operators.
In the announcement, it was not made clear which blockchain that the application is developed, but my guess would give Ethereum a higher chance. This is because it has specialized in smart contracts and Dapps since its inception.
However, don’t be surprised to see Tesla working on its blockchain technology. It is a huge company with engineers and developers capable of delivering one stable network.
This announcement will be very good for Tesla (TSLA) stock which is at the time of writing struggling to rise above the current $550 hurdle. The company will now be in a position to efficiently schedule its units’ delivery without surprises along the way.