4 ms·

Tesla should just build another factory in China. Why bother w manufacturing in the EU?

by djohnston 7y ago

zamfi 7y ago
Tariffs. Cars built in the EU are much cheaper to EU buyers than those made in China.
- djanogo 7y ago
  I don't think it's just about tariffs, BMW and MB have been exporting cars from Germany to US for a LONG time, if the tariffs are reciprocated I am sure it's not that a big deal to just pay them. I think it's more about Tesla wanting to capture German manufacturing know how and skilled auto labor to improve Tesla's products.
  - zamfi 7y ago
    Surprisingly, the tariffs aren’t equal: 10% on EU imports, 2.5% on US imports. It’s not a ton, but it’s not nothing. Why not just hire Germans, then? Frankly, Musk empirically isn’t the type to list on experts in manufacturing — he ignored them entirely when trying to fully automate the Model 3 production line. So your hypothesis strikes me as unlikely. Doing it to spite the German automakers, though, that I’d believe!
rad_gruchalski 7y ago
Moving the location to Poland, some 70km east, would be enough.
mc32 7y ago
Or Czechia or Polen, even Spain.
EliRivers 7y ago
I'm sure there are many reasons; one might be the tariff on imports of electric vehicles from China, which I believe is 10%. The tariff is a bit tricky to find, but I think it's 87038010 - electric cars principally for transport of persons, that aren't trains or trams. Ten percent isn't nothing but it's not like the 100% or more tariff seen in some countries on car imports; I expect it's just one more factor.
electriclove 7y ago
They need one in the EU for tariffs and shipping costs. But I agree that they should also build another factory in China. Keep showing the world how it can be done if all parties are committed.
- 8bitsrule 7y ago
  Sure, seems like BASF was welcome in Shanxi after Toms River. Always easy to export the problem to sacrifice-areas. /s
Jon_Lowtek 7y ago
> Why bother w manufacturing in the EU? 1. Have you ever heard of the trade war? 2. Intercontinental transport will become more expensive. 3. Geo-redundancy means safety for mega corporations. 4. China may decide those are now state owned factories.
aguyfromnb 7y ago
>Tesla should just build another factory in China. Yeah, maybe they can build one in Xianjiang for cheaper labour. Why bother with laws?

Tesla should just build another factory in China. Why bother w manufacturing in the EU?

zamfi 7y ago

Tariffs. Cars built in the EU are much cheaper to EU buyers than those made in China.

djanogo 7y ago
I don't think it's just about tariffs, BMW and MB have been exporting cars from Germany to US for a LONG time, if the tariffs are reciprocated I am sure it's not that a big deal to just pay them. I think it's more about Tesla wanting to capture German manufacturing know how and skilled auto labor to improve Tesla's products.
- zamfi 7y ago
  Surprisingly, the tariffs aren’t equal: 10% on EU imports, 2.5% on US imports. It’s not a ton, but it’s not nothing. Why not just hire Germans, then? Frankly, Musk empirically isn’t the type to list on experts in manufacturing — he ignored them entirely when trying to fully automate the Model 3 production line. So your hypothesis strikes me as unlikely. Doing it to spite the German automakers, though, that I’d believe!

rad_gruchalski 7y ago

Moving the location to Poland, some 70km east, would be enough.

mc32 7y ago

Or Czechia or Polen, even Spain.

EliRivers 7y ago

I'm sure there are many reasons; one might be the tariff on imports of electric vehicles from China, which I believe is 10%. The tariff is a bit tricky to find, but I think it's 87038010 - electric cars principally for transport of persons, that aren't trains or trams. Ten percent isn't nothing but it's not like the 100% or more tariff seen in some countries on car imports; I expect it's just one more factor.

electriclove 7y ago

They need one in the EU for tariffs and shipping costs. But I agree that they should also build another factory in China. Keep showing the world how it can be done if all parties are committed.

8bitsrule 7y ago
Sure, seems like BASF was welcome in Shanxi after Toms River. Always easy to export the problem to sacrifice-areas. /s

Jon_Lowtek 7y ago

> Why bother w manufacturing in the EU? 1. Have you ever heard of the trade war? 2. Intercontinental transport will become more expensive. 3. Geo-redundancy means safety for mega corporations. 4. China may decide those are now state owned factories.

aguyfromnb 7y ago

>Tesla should just build another factory in China. Yeah, maybe they can build one in Xianjiang for cheaper labour. Why bother with laws?