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Tariffs. Cars built in the EU are much cheaper to EU buyers than those made in China.
by zamfi 7y ago
Tariffs. Cars built in the EU are much cheaper to EU buyers than those made in China.
- djanogo 7y agoI 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 agoSurprisingly, 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!