5 ms·
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 Tesl
by 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 agoThat'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 agoAre 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 agoGermany 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 agoThis 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 agoMaybe Tesla would use more robots from Tesla Grohmann Automation in this last Giga Factory to offset the labor cost in Germany...