Tesla will move most U.S. auto production to Mexico in 2 years
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- Опубликовано: 21 дек 2023
- Tesla will move most U.S. auto production to Mexico in 2 years
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I happened to be driving down Hwy 80 in Nevada and made a stop in Sparks just for giggles. I once contemplated buying a house there in the '90s. I drove down to Giga Nevada and an entire town has been built around it. The amount of economic activity created by these factories is mind-blowing.
Nuevo León is an industrial state with mexican corporations so important around the world! It's not a poor state😂! That area is outside the city lol.
We have companies like FEMSA, Nemak, Xignus, SOFTEK, CEMEX, Frisa, Metalsa ...look the information. You will be amazed that even them have plants in USa, UE, Asia and South America.
That’s crazy. It’s moving to Monterrey Nuevo León. While it will help the economy, Monterrey is already a manufacturing power house. It’s not some poor dirt city/state. In fact it’s the state with the highest GDP per capita of all of Mexico which is around 40k and are talking about a city with the wealthiest municipality in all of Latin America. It’s a city with multipal large universities it’s a city with a metro population of almost 5 million in a state with almost 6 million. So to say the state will be dependent on one factory when it’s already doing well without that factory sounds really weird
Mexico has like 46 free trade agreements with key countries
Great content! China and Teslas contribution to the Mexican economy will be huge. It's a shame the all the haters and roadblock creaters let this massive volume slip through their fingers. One major thing Tesla and Chinese ev builders have in common: they wait for nobody.
The Central Americans will be staying in Mexico soon. 😅
The Gigafactory in Nevada is in Sparks (Reno) not Las Vegas.
Viking, the Nevada Gigafactory is just outside of Reno, not Las Vegas.
Tesla will need all the factory space they can build. They have no time to shut down factories... Fremont and Texas will represent four million cars produced per year in a couple of years. Europe has way higher labor and other costs than USA factories but they still built and are expanding giga Europe... Tesla localizes the supply chain even though cheaper parts might be available in China... Nothing from Tesla history would suggest that they would move production rather than just increase production...
Ross Perot was right in 1992. NAFTA would be a great sucking sound of lost US jobs
While initial reports suggested this factory could ultimately house all U.S. auto production, Elon Musk later clarified that it isn't intended to displace existing U.S. production, but rather supplement it.
He stated that existing factories in Fremont, California, Austin, Texas, and Berlin, Germany, will continue expanding production, and the Mexico plant will primarily focus on "next-generation vehicles" in a more affordable price range.
By distributing production around the globe, Tesla empowers other regions to embrace and contribute to the clean energy revolution. This collaborative approach can potentially accelerate the overall adoption of sustainable transportation solutions and ultimately benefit all nations.
Are you kidding. They'll have tesla bots doing 90% in the US in a few years 💯
Y'all are already doing 90% today. There is no need to wait a few years more.
You have no engineers good enough to run these bots. Dream on...
@@olivur_1459
90%.... LoL...in your deams..
You’re dreaming. Look at a video of the workers.
They are agile. Think outside the box. Can multitask. It’s not uniform . Moving platforms. Screws with exact tolerances that is mind / hand finessed with precision tools even. Extreme dexterity with bending and movements. A lot of work is done by “feel” and intuition of most workers having years of experience
You’re dreaming. Try again in 15 years before they can replace skilled workers who are 100 steps ahead of a robot that isn’t even in real world use
100% agree. By building in different countries, Tesla gets to apply pressure, placing countries in competition to get additional production. Existing production is only 1.8 million, future will be 20 million a year Probably by 2035 or so. Right now Texas will not even let Tesla sell its cars from Tesla showrooms in Texas. I see a little pressure coming. When Elon talked to the Chinese leader recently, China suddenly became more receptive to a new factory for Model 2 in China. They probably also will stop complaining about Tesla cars with cameras going near China Chinese military installations. Otherwise, Tesla may decide to build more cars in Mexico instead.
Everyone also said Tesla would shutdown Fremont, Ca plant. They kept it going. The plan is to use all of these plants. Mexico just helps the plan further along the path.
I think Chinese EVs will also move to Mexico and create a market for local EV suppliers and this will make Mexico the go to place for EV production in North America
Mexico soon will become the new China of this hemisphere. For good or bad I’m wishing the best for our south neighbors. 😊
Mexico is cursed with poor geography ever to come close to the Chinese level of production. But Mexico, with lots of American support, can be a large producer of automotive products and is already a significant vehicle manufacturer. As UAW labor costs kill US production, Mexican production will increase, and the investments made today by US producers in Mexico are laying the groundwork for the future. Also, doing business in California is becoming next to impossible, so expect Tesla someday to shut down Freemont in favor of Mexico.
@@smarticus6384That's a good point, UAW needs to unionize the auto workers in Mexico as well
@@smarticus6384 Yeah, but a country largely run by drug and sneaking things into America, killing anyone trying to limit those Cartels... one has to wonder how long before Cartels are stuffing Tesla cars with drugs?
Used to be different 20+ years ago but you would not catch me or apparently a significant number of Texas Tesla engineers living in Mexico.
Will be interesting to see the eventual impact of Tesla Bots to the mix. What if the Mexico factory actually needs less labor than anticipated? Austin and CA factories might start to become more competitive as well.
Exactly. Even without Tesla bots, with the extreme simplification of the model 2's assembly process and almost total automation, Tesla's new goal in 5 years might be to set up factories as close to the points of sale or battery material deposits as possible.
@@fergyspoolshots At least you guys are (thinking) running on all cylinders!😁😁
Exactly. MOST of their production line staff can be replaced.
They will still need the Austin plant for a long time but maybe not the CA one. California is getting hard to deal with and doing weird policies like screwing over folks who installed solar and making Tesla jump through hoops so might be time to plan to exit that state.
When they went to Europe they located near Berlin, where the talent is. Not in Hungary or Poland which have low cost labor. Tesla still has a lot of engineering talent in CA. As the man said, if you are expanding 50% per year, you are not closing factories!
I'm not a economics expert but I can tell you off experience I think that will make cars affordable to the poor. I use to be a electronics repair technician. I had a TV/VCR repair shop. There was a thing that happened called NAFTA and the rest was history. TV's and VCR's became so inexpensive they became disposable. I don't care what you say I'm for it 100 percent because I need dependable transportation and I am tired of driving decades old vehicles. Hooray for tesla....Vive Mexico !🎉
As Mexican im happy of tesla building in mexico since it's a win win for them and for the local economy, i just hope they pay the people a fair wage. Thank you Sam for all the info
no it's not. moving plants like this destroys lives creates homelessness and crime. It happened here in Windsor Ontario a place that was known as the automotive capital of the nation, only eclipsed by our neighbor Detroit. I am included in that list. the city now has massive internal corruption, and the cost of housing rose the fastest on the planet due to the lower wages because of the local economy taking, only to have out of town people and companies buy them all up and jack up the rent and prices. 14 years ago i bought a 4 bedroom that's now worth $500,000. rent for a place my ex was paying $750 over 2 years went up to $2500 per month.
Mexican workers in Mexico work hard and don't ask to much from the employers. They deserve well pay and good treaments from Tesla, which I think Tesla will
What about the cartels? Are they going to ask for a cut to do business in their territory?
I don't think Tesla simply by moving to Mexico will reduce their manufacturing costs by half. I would say 20% to 30%. I don't believe Tesla's major cost is just labor. I believe because Mexico has a better trade partners which allows export from Mexico to more countries than being in the USA. Energy cost and construction cost are also considerably cheaper in Mexico. Just gives Tesla so much more flexibility than being directly linked to US policies.
Giga Mexico may well be used as a “silent” message to its workers in its US factories. If they join the UAW, their factory may stop receiving investments or may even be closed in favor of Mexico. On the other side, Tesla needs these US factories if they are to achieve their stated goal of producing 20 million cars in 10 to 12 giga factories worldwide. While it is a an interesting debate if Tesla would move production from US to Mexico, I deem it unlikely that they would go over to such action unless they have excess capacity at the time.
Tesla is sending a message to Biden that if they keep treating Tesla the way they have been, Yes were going to move to more friendly Government country like Mexico & Canada & others towards them.
100% agree. By building in different countries, Tesla gets to apply pressure, placing countries in competition to get additional production. Existing production is only 1.8 million, future will be 20 million a year Probably by 2035 or so. Right now Texas will not even let Tesla sell its cars from Tesla showrooms in Texas. I see a little pressure coming. When Elon talked to the Chinese leader recently, China suddenly became more receptive to a new factory for Model 2 in China. They probably also will stop complaining about Tesla cars with cameras going near China Chinese military installations. Otherwise, Tesla may decide to build more cars in Mexico.
Elon trying to get more government subsidies.
@@rozonoemi9374 Tesla is sending a message to Biden that if they keep treating Tesla the way they have been, Yes were going to move to more friendly Government country like Mexico & Canada & others towards them.
--------------------------------------------------------------------------------------------
Biden has given all kinds tax breaks and incentives to Tesla and the EV industry.
The next Gigafactory iteration will obsolete the earlier generations in terms of capacity. All efficiencies are taken into account for Tesla factory locations, and these change over time. I suspect they'll "refresh" Giga Texas at some point if needed. Most Tesla employees fortuinately are already bright enough to know that unions exist for the benefit of unions, not the workers they presume to be representing. Your indicated silent message is heard in Washington if not by workers, for a certainty. Are the listeners understanding?
An illuminating question, even though a "crazy" suggestion that would meet only Mexico's interest and only in the short-term, totally inconsistent with Tesla's mission - that Tesla would move any of its U.S. production capacity to Mexico. Instead, Tesla has from the start and continually since chosen to take the highest and hardest path, i.e., the right path, with setting up in California, then China, then Texas and Germany, rather than follow the short-term-profit-maximizing GM and other legacy auto manufacturers. Tesla will, instead, continue to distribute its growing capacity around the globe, so that it's clearer and clearer that Tesla has many alternatives to grow its capacity and is not overly dependent on any single state, nation or region - to bring and stimulate the bringing of this crucial world-changing, clean renewable energy based technology to meet our world's transportation needs. Tesla's Semi and Cybertruck are additional, important examples of why and how Tesla's fundamental mission comes first in its priorities and decisions, and always will, rather than anyone's myopic, parochial, short-term self-interest.
you forget 1 thing... Unions. US will still have factories but they will be small ones... they will do the testing and proof of concepts. Once things gets sorted... they go to the super size factories.
@@8ettieP46e
Test and proof will be done in the most competitive market, and the largest, i.e. China. USA is hollow...
@@8ettieP46e Possibly. However, Tesla is looking to build factories in many countries (since localization helps to drive down manufacturing and delivery costs, and there are environmental benefits too). Of particular note is that within the next few years Tesla will have factories in Canada as well as Mexico. Also during the next few years, we can expect legacy auto makers in the US to face increasingly difficult challenges to stay alive as their market share continues to decline, and they will probably shrink in size, thus significantly decreasing the size and power of the UAW. If/when it gets to the point where Tesla's US factories provide the majority of employment in the US auto industry, then any significant threat to Tesla in the US (either from unions or an anti-Elon president) might be met with Elon suggesting that he is considering closing down the US factories and moving production to Canada and/or Mexico. I'm not predicting that that will happen; merely that it is a possibility. I suspect future historians may write about the rise and fall of Tesla as if it were the plot line of a soap opera script filled with regular changes of allegiances and Machiavellian characters.
Well said!
@@8ettieP46e Your forgetting about Optimus. Optimus will fill the majority of union jobs in the US. They can also use the Optinus/FSD tech to create smarted classical robot arms.
Labor is not as high a percentage of part cost as you think. Especially for high volume automotive parts which usually need automation equipment to meet the annual volume requirements. I would estimate that labor is only 10% or less of the vehicle cost. Some people estimate its 5%. You are saving hundred to low thousand dollars per car. (Remember I’m talking about cost and not price. The COGS for a car is probably 60% or less of price.)
Tesla wants 20 million units a year. Mexico can assume most production while US, Shanghai, Berlin continues to make millions of units, but India, Canada, Indonesia are still possible.
As I Canadian I would love to see Tesla come here but unfortunately they are prejudiced against Elon at the Federal level presently. I hope I'm wrong
Canada is very unlikely. Between Fremont, Austin, Reno (batteries and Semi), and Monterrey (Tau), North America is done.
Berlin will drive the European market. China has some political challenges, so likely limited expansion there. But there will likely be one more SE Asia factory in addition to India (they can sell a lot of Tau in India).
Why Canada? It's not any cheaper than in the US. That's why they chose Mexico. More likely India or Vietnam is next.
I think Mexicio will do great beacuase Tesla and Chinese EV makers are rushing to set up factories there.
Tesla is against bribery, that's why they are slow to start. The Chinese, not so much. Mexico practically lives off bribery.
BYD is checking out real estate in Mexico to set up a mega factory
Having all those great jobs in Mexico will work a hell of a lot better than a wall.
Lol imagine driving a car made by mexicans. I love how this dude never says a bad thing about tesla even if their cars are depreciating into the dirt. The terrible wind noise in the cabin when driving. Low grade materials and fabrics. Tesla using "minimalistic" design as an excuse to cut manufacturing cost down and make their profit margins higher. That's why they are able to cut their prices so much.
Mexico needs solar and battery storage. Imagine the number of mega pack batteries and powerwalls Tesla could sell there
More important than Mexico's market is the market in the rest of Latin America. Mexico has free trade agreements with Central America and many South American countries (Colombia, Peru, Chile, Bolivia, Uruguay). Mexico has an automotive free trade agreement with MERCOSUR (Argentina, Brazil, Paraguay and Uruguay), but I don't I don't think Mexico can export solar and batteries to Brazil, Argentina and Paraguay without tariffs.
@@amosbatto3051 True VW ships some models of cars from Germany without driveline installed to Mexico where it is installed which then makes it possible to export to Brazil without tariffs because the value added in Mexico meets the criteria
Why when they can produce fossil fueled electricity more cheaply and it can run factories around the clock!
@@philipdamask2279 better to export the oil
Yep
Austin is already working out the next-gen bugs out of the factory lines
Once worked out, these factory lines will be exported to all future factories
Cautious optimism in the economy is the reason for the slowdown in factories
Next year '24 will show whether things are stable enough to expand factories elsewhere
Agreeing to build supporting infrastructure isn't exactly a gift to Tesla, it's required for all related extra development. Temporary cutting taxes is a gift, a sensible one. Government taking some risk along with Tesla and the rest, they have skin in the game and incentive to help make it payoff.
This is like stealth made in China.. Lots of Chinese companies are in Mexico already that will make up the supply chain for Tesla.
The USMCA raises regional value content (RVC) requirements to 75 percent for passenger vehicles and light trucks, compared to 62.5 percent under NAFTA.
Even the Australian government, that has NO auto industry, subsidises cars by around $5/km.
The Mexican government would also have to guarantee the safety of the workers, Tesla's top researchers and engineers and also protect the vehicles being made. There are a huge number of drug cartels and criminals in Mexico which have deterred other companies from moving there in the past! I hope it goes well for both Tesla and Mexico and everybody is guaranteed safety!
Really
????????? Ford and GM are already making their cars and Pickups there. I belive this is stereotyping
@@hedleypepper1838agreed!
I personally know 2 people who left Mexico to move to the US not because of economic issues but because of the Mexican mafia. One man was told to hand over his motorcycle because the mafioso wanted it, but he refused and raced away, they found out where he lived and threatened his father who handed over the bike, but they still wanted to kill him. Another was a small rancher and when the mafia decided to steal his cows he got into a gunfight and shot and killed one of them, the local police ignored the fact they were selling and went after my friend.
@@hedleypepper1838 Mexico is INFESTED with cartel corruption. It permeates every industry, ever gov official and every law enforcement agency. They have their hands in everything and control everything. Stereotypes exist for a reason.
@@hedleypepper1838 It's not "stereotyping" if it's true.
Great vid!
While I don't see any too difficult reason why Tesla shouldn't set up manufacturing in Mexico, I don't believe that the price of a car made in Mexico can be half its price than in the US (as you said). Even if the wages would be half, a significant part of car price are materials. On top of it, it's as if you forgot that the bots will replace many labor intensive positions in Tesla soon.
So this clip is what I call a "yell into the darkness".
Giga NV is 650 miles from las Vegas. Just an FYI as you're not from around here 😊 thanks Sam, Merry Christmas Brett
Neither are you apparently! 435 road miles from LV to Sparks.
@@stevebloom5606 damn that Google maps! Lucky for me I have never had to drive it. Thanks for the update. Happy holidays
BYD has a bus factory in Lancaster, California.
You r totally right sir
hi, VIking , couple of EV news that suprised you didnt cover, Xiaomi car is just around the corner , a lot discssion in China. Also Nio CEO personally drove the car for more than 1000km in a single charge.
He a Tesla king bot, doesn't cover positive news on rivals
@@ciybersal3499not true, he does cover a fair amount of news of other brands
It was such a weird revelation to me when I realised how such an insanely complicated solution to transportation ever won in the first place. So many secondary systems are there simply to get around the inefficiencies of the combustion engine. Transmissions with gears, turbo and super chargers, special fuels and lubricants etc. and all the trillions that has been spent in R & D over the last century just to supply a system that supports the oil industry basically! Such ingenious, complicated mechanical and electronic systems to try and make such a hugely inefficient solution be just that tiny bit more efficient! Imagine where we would be now if the industry had focused on electric motor and battery technologies over the last century instead of all that! And that’s not even mentioning the pollution!
What you don’t know about Mexico… You never want to have a bad day in Mexico.
Thanks for covering Electrifying news Sam ⭐️
Thanks!
FYI gigafactory is nowhere close to Las Vegas, it's just outside of Reno.
About 7hrs north of Las Vegas
I expect Tesla next gen car will be the most produced car in the world but i also expect it to be built 99% automated. The car will be designed to be built in high volume by automation it’s the only way to get cost down that much
The unboxed process sounds like it'll reduce steps by a lot.
The manufacturers who are stagnating can shift production, Tesla needs to add production. Still operating Fremont at capacity, after building Shanghai, Berlin and Austin.
Cheers mate
Really? Seems more likely they'll build a plant in Mexico & see how it goes.
1) The investment in Texas & California is considerable & the plants are profitable, bugs ironed out.
2) Labor costs are - if not insignificant - not crucial. Labor cost is
yer right on, simple, Tesla's in biasness to make money, cheap labor, no regulations
Nuevo León is 76 miles from Salton Sea, which was in the headlines recently as the worlds largest lithium reserve.
BYD building factory in Mexico too... can supply both u.s and S america
I live in Mexico and quite aware of what is happening. Tesla will only be a small component in the Monterrey area. That city and area is booming as is all of Mexico thanks to near shoring. But a huge concern is the strength of the peso; lack of educated work force and lack of water. And, you are dreaming if you think Tesla will lessen existing production in the US.
Morning mate
I wouldn't bet against the USA, not now. USA is about to come back as undisputed industry leader on Earth.
Fair point...............
The only payroll tax in Texas is the unemployment insurance tax. Nevada doesn't have a state income tax.
For Model 2's context, Tesla CEO Elon Musk sat down with Sandy Munro of Munro & Associates shortly after the Cybertruck launch event this past week.
The first production line will be in Austin, Texas, according to Musk, with the second line going into Mexico. “It will take too long to complete the factory in Mexico.”
Thanks for pointing this out. The Mexican bureaucracy simply cannot move fast like China. I remember when Giga Mexico was announced, some were predicting the first cars by end of the year. Not even Tom Zu could accelerate the progress in Mexico. Here we are at the end of the year and ground has not even broken. Dictatorships can clear the red tape faster than democracies which is why Giga China went up so fast. I predict it won't be until 2026 until the factory in Mexico is producing. By that time, a line will be up at Austin perfecting the new processes.
@MrCPPG Let's see if you are right on timeline. If the building itself takes a year, mid 2025 seems solid.
But they should be producing batteries and megapacks before then. Decent ramp by mid 2025 on that, sounds good.
If they can produce 4680 earlier, that will help.
But in the spring Musk and executives said the hard part is the supply chain, the logistics, harder than the factory. So your timeline is meaningful in that regard
@@tireddad6541 The factory is useless without material inputs and logistics.
Tesla doing mucho manufacturing in Mexico will almost certainly help reduce the immigration pressure into Los Estados Unidos. A good thing IMO.
Honestly, as much as i want manufacturing in the US, it's nearly impossible to do it profitably unless it's a niche item with high markup. It's common for me to be able to buy finished goods from China or India and have it shipped here for the same price as the raw materials in the US. My buddy and I both own small businesses and hate sending work overseas, but often there is no choice. Prototype in the US and then outsource the production overseas, or don't get the job.
A year ago it was explained there was a large auto industry there.
The glory of the free market. Capital moving to where is is treated best. Warren Buffet would be proud.
Thinking a small percentage of Mexico's units to North America and sending the majority to Central and South America while increasing its infrastructure. Primarily with inexpensive autos, bots and chargers.
Well with the UAW threatening to try to unionize all the other non-union manufacturers in the US, this makes a lot of sense.
When BYD installs in Mexico they will certainly compete for Americas market, regardless of politics, Tesla is getting its main China's competitor at home
Jobs for production in Monterrey will be limited. This will ONLY have Tau production, and the Tau design is focused on Optimus for automation. The jobs will be in supervision, as well as from suppliers. The supervisor roles will pay well, but the volume will be limited.
The factory will be a large boost to Mexico. But not nearly as much from direct production employees. And there will be zero production moving there from the US.
Maybe for legacy auto. Tesla is using increasing automation, will use robots, is not hindered by unions and dealerships, and likes a short supply chain. Sure Mexico auto production will increase, but I think Tesla, Aptera, and Rivian will have manufacturing in the United States for quite a while.
Aptera😅
Aptera is having it's body manufactured in Italy, the motors in Slovakia, and the battery cells probably from China.
Assembled in US.
I have a reservation.
Nah. Re moving production outside the US, on the one hand it's expensive to move factories, on the other Tesla's stated plan is to have many gigafactories all around the world so it makes no sense to over-concentrate in a given country, and on the third hand leaving the US would be politically disastrous for them.
Why would it be politically disastrous? GM and Ford do it not just in Mexico but in Canada. Don’t worry about politics worry about making good affordable vehicles. Worry about the unions driving all of the existing auto operations out of the country. Why do you think everybody is building in China? They have a big domestic market, but they also export heavily. If you don’t believe me look at Japan. They have a worldwide market.
None have ceased production in their home countries.@@royphillips7644
Absolutely horrible how the US government is treating Tesla
nevada gigafactory is in sparks. 7 hour drive through the desert from vegas
Here in Europe, there are strict rules for pollution. Here, the companies must comply with strict rules for production. Who will pay for this in the long run, it will be the citizens who live there and society as a whole. This can have far-reaching consequences!
Yeah unfortunately not th whole of Europe. Here im Croatia companies pollute like crazy, pay a tiny fine amd continue to pollute like crazy. There is no control, no inspections, all of those probably get paid to be silent... Mafia state
Companies like Volkswagen. Diesel gate and they cheat on emissions test.
It is kind of surprising at the current animosity demonstrated by the current U.S. president and his administration towards Musk.
Spot on. I can see this happening soon. Elon has had enough of battling in the US,
Correction Tesla's Nevada factory is near Reno or 439 miles from Las Vegas!!!
Sam, Sparks is 417 miles from Las Vegas
What the Chinese need to know is that setting up shop in Mexico is NOT going to be a work around into getting into the US auto market and expect IRA or state incentives.
And all but the LFP Teslas are going to qualify for the incentives. It's just that they can't say it until after the year is over in order to sell as much as they can for this final quarter. It's already being worked on.
For 20 million cars you need some factories, and all eggs in one basket is a bad idea. The investments done in the US, China and Germany have to pay off, look the constructiom in Austin and Grünheide, massive amounts of money get buried there.
More game changing news!?😯"The "Big Three" (General Motors, Ford and Chrysler) have been operating in Mexico since the 1930s, while Volkswagen and Nissan built their plants in the 1960s."
Musk already stated that the model 2 built in Mexico is NOT for the US, but for South of the border countries.
The Tesla enployment effect on local economies is to boost boost the education and the quality of life by attracting and training their workforce on how to approach and achieve seeming impossible goals through innovative engineering and creative design processives 😊
I expect that the Tesla future master plans will transition every manufacturing site to meet what works best at their particular location.
Everything that has been displayed since the CyberTruck reveal shows manufacturing capabilities way beyond what other companies would consider "state of the art" 🤗
Tesla brings economic and environmental benefits to people all round the world...and they make the safest cars...no wonder Legacy Auto are running scared !
What about Optimus? I thought all Tesla factory workers will be replaced by robots very soon.
🤣One thing about Elon....
He lies.
If a Tesla plant unionized, I would not be shocked if that production moves to Mexico.
Are you sure there is no corruption / extortion in Mexico?
Companies move to the low cost maker all the time. It's not complicated. Also, moving manufacturing to Mexico is more about not having that manufacturing take place in China. This isn't a US vs Mexico thing.
I can see it now. Mr. Tesla salesman? My Cybertruck says Corona on six of the panels. What are they shoving into that gigapress?
Well put. Wester countries are becoming harder and harder to invest in. Labor unions are the paramount reason for large companies considering Asia and now Mexico.
Wrong
Tesla doesn’t have a factory in Las Vegas ya goof
The UAW hasn't managed to kill the U.S. auto industry in 90 years.
Yet.
"Half the cost [in Mexico]" is quite far-fetched, particularly since labor is about 5-7% of the cost of vehicle assembly, and labor contribution is falling due to annual increases in automation.
Bananas, a rather old Guatemala reference 😎
USA should be for battery and bot manufacture....in the future
Chinese auto makers are also moving to Mexico-for cheaper labour and probably weaker or no labour laws and lower pollution standards
Not sure how much moving to Mexico, but growing in Mexico, is a must. It opens many markets to free trade. And let's add that Tesla has no market penetration in South America.
Tesla needs to grow megapacks substantially to meet its goals. And a sub 25K price, probably sub 20k price is needed to compete with cheap ICE.
BYD is already moving into this market. And there are quality sub 20k available in China.
So while Marra Barra can't figure it out, Germans can't figure it out, the Chinese are already doing it. Elon himself said they are crazy good at this.
I believe Mexico is a little cheaper than China wage wise. They need to build their suppliers. Who will be local just like everywhere Tesla builds.
Look at the cheapest cars sold in the US. Nissan, Kia, right? Sub 20k though close to it.
So if the US insists CATL not build in the US, they will build in Mexico. Then in other countries.
I doubt that any U.S. plant will be idled, or not be making autos in 2 years. The company is going as quickly as it can to make new forms of cars. We still have to see vans and delivery vehicles and a full sized SUV, the Semi will need its own line, maybe 2 lol.
We need another Factory entirely for cars/vehicles and one entirely for 4680 battery production- storage, semi, ct and what about the model 2.... with a desired 10 million a year production?
No, regulation headache as America is we need every factory line and more in the U.S.
Move is the wrong term. Build out is the right term. They plan to build 20M cars. They build less than 2M today so 90% of their capacity has yet to be built.
There will be a lot of issues in Mexico...meaning that reduction of production in the US quite unlikely; especially with Optimus!
Transportation time, cost, and environmental damage reduction are changing global business, reversing the last 30-year experiment with globalization. Many countries have been left out.
International trade, travel, and connectivity will continue to enrich a new world culture.
Tesla has seized an opportunity to become a worldwide business by aggressively responding to the environmental crisis.
This will enrich every place they are welcome, as they are a local employer. Tesla factories and services will be everywhere.
Mexico means no more waiting 18 years for the building permits to be approved.
Any auto parts and components going from China to Mexico will attract huge tax to protect American and Mexican jobs.
I remember the environmentalist outcry in Gruenheide over smooth snakes and water usage, excessive COVID shutdowns in Fremont, and arbitrary shutdowns and expansion blockages in Shanghai. Mexico makes great sense for Tesla. Optimus robots will likely be welcome in Nuevo Leon as a display of national technology innovation. In Gruenheide the robots may face stiff opposition from unions and works councils. In Fremont and Shanghai the robots will likely face excessive regulatory oversight and media coverage. I expect Tesla's Mexico factory to be their largest and most productive when fully ramped.
I'm not sure if they will move the US production to Mexico, but more like expending Tesla production to new location. In future they will produce additional volume there, not the same amount of cars like last year but in Mexico this time.
Other point I'd like to make is that they are moving to Mexico to have more freedom what to build and how, in less regulated developing country economy, and cheaper labor force, but with change of governments the conditions can quickly change too. They might need to higher union workers only, or pay new high environmental fees, etc. Recently there was a prime example how bad business can go in such countries. Environmentalists/local activists in Panama won case in courts and government had to stop a big copper mine operation there. A multi-billion dollar business, which got all the right permits from the government at one point and was welcomed there as foreign investment. Regardless how much prosperity to local families this foreign investment was bringing it was shut down.
Cheers
PS Rely enjoying your programs. Thanks
What the Electric Viking is telling me flat out is Amprius Battery needs immediately to set up in Mexico. Since it will push a Cyber Truck twice as far it must leave California. California has the most anti-business atmosphere known to man. We can actually afford a Cyber truck built in Mexico with Amprius batteries making the truck wonderful. If half the cost of now it will go whole hog.
I think you're right Sam!! This seems like a big dollar soap opera!!
Don't think that Tesla can build cars for half the price in Mexico, Labour cost is not so a big part of the highly automated productions.
They just need to scale production to meat future demand, they need all the factories they can build around the world, they will properly increase then number of jobs in US also.