4 ms·

I wonder if the new factory in Germany will lower the costs for the European market. Currently it's pricey to fully own (not lease) a Tesla in Europe.

• gerikson 7y ago
  That assumes that an EU factory will find economies of scale and efficiencies to counter the higher real wages in EU compared to the US and China. And that Tesla won't simply add those efficiencies to their bottom line.
  • drukenemo 7y ago
    That's all possible, of course. But tax incentives for clean energy and market penetration strategies might account for such price reduction. At least I hope so.
  • Klathmon 7y ago
    Are the wages in Germany really higher than in Fremont, CA (right outside one of the highest cost of living areas in the country)?
    • SEJeff 7y ago
      Germany has some of the strongest labor unions in the western world. I'd not be surprised if the answer is in fact, yes.
    • gerikson 7y ago
      This article (1st Google hit) suggests they are: https://www.autoexpress.co.uk/car-news/98986/the-global-car-manufacturing-wage-gap-what-do-car-factory-workers-earn https://www.autoexpress.co.uk/car-news/98986/the-global-car-...
    • llsf 7y ago
      Maybe Tesla would use more robots from Tesla Grohmann Automation in this last Giga Factory to offset the labor cost in Germany...