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Musk: Tesla will have a factory in China

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11–20 of 40 posts

Re: Musk: Tesla will have a factory in China

#11
post #8

Earlier quoted context omitted.

Yes, because Apple lost their trade secrets by having their factories in China, right?

Perhaps they actually did lose some manufacturing process secrets, how are we in a position to tell?

OEM/ODM contract manufacturers do most of the heavy lifting of figuring how to make things cheap. Most of the time they cut corners creatively and save everyone money and it works out, but sometimes the low-volume shops go too far and break functionality.

Re: Musk: Tesla will have a factory in China

#12
The next-to-last sentence caught my eye:

"The automaker recently announced that import tariffs and transportation costs will push the price of its Model S in China to $121,000, or roughly 50 percent more than the plug-in sedan costs in the U.S."

We'll never hear it mentioned in American news, but we had import tariffs up until the 80s when we adopted supply-side economics as our ideology. We wonder why our manufacturing has all gone overseas, well there is actually a very simple explanation. Other countries still protect their manufacturing with tariffs while we don't. American workers can't compete with countries that have no minimum wage, no environmental protections, and few (if any) anti-corruption laws that are actually enforced. In fact if you go back far enough (and this might appeal to skeptics with a libertarian slant) tariffs were a primary form of taxation before income tax. I wish we could at least have an open debate about bringing some of them back, with projections and an honest analysis of what it would do for American industry. But with corporations seeking ever-lower costs by design, and politicians ramming through the TPP at top speed, I don't see it happening any time soon.

Re: Musk: Tesla will have a factory in China

#13
post #8

Earlier quoted context omitted.

Yes, because Apple lost their trade secrets by having their factories in China, right?

Perhaps they actually did lose some manufacturing process secrets, how are we in a position to tell?

Because Apple is notoriously secretive and it still uses China for manufacturing. And because it hasn't brought any litigation against some Chinese for something like this.

So, even if they did lose something, it shouldn't have been much. Which means "making Tesla there == there go your trade secrets" is not necessarily correct.

Re: Musk: Tesla will have a factory in China

#14

The next-to-last sentence caught my eye: "The automaker recently announced that import tariffs and transportation costs will push the price of its Model S in China to $121,000, or roughly 50 percent more than the plug-in sedan costs in the U.S." We'll never hear it mentioned in American news, but we had import tariffs up until the 80s when we adopted supply-side economics as our ideology. We wonder why our manufactur…

I hope no one else thinks this is a good idea. The problem isn't corporate control of government stopped this but the fact it would do so much damage to the American economy and maybe start a trade war.

Re: Musk: Tesla will have a factory in China

#15

The next-to-last sentence caught my eye: "The automaker recently announced that import tariffs and transportation costs will push the price of its Model S in China to $121,000, or roughly 50 percent more than the plug-in sedan costs in the U.S." We'll never hear it mentioned in American news, but we had import tariffs up until the 80s when we adopted supply-side economics as our ideology. We wonder why our manufactur…

It's worth noting that despite the price increase compared to what Tesla charges in the United States they will, according to Tesla, actually be charging significantly less than other car manufacturers are charging for comparable vehicles in China.

http://www.teslamotors.com/blog/fair-price

Re: Musk: Tesla will have a factory in China

#16

The next-to-last sentence caught my eye: "The automaker recently announced that import tariffs and transportation costs will push the price of its Model S in China to $121,000, or roughly 50 percent more than the plug-in sedan costs in the U.S." We'll never hear it mentioned in American news, but we had import tariffs up until the 80s when we adopted supply-side economics as our ideology. We wonder why our manufactur…

I hope no one else thinks this is a good idea. The problem isn't corporate control of government stopped this but the fact it would do so much damage to the American economy and maybe start a trade war.

It would absolutely start a trade war, that America would lose very quickly. The incorrect assumption here is that America has more to gain than lose from doing that, when such couldn't be further from the truth. America is temporarily riding on a fake consumer driven economy supported by the cheapest debt in world history and cheap imports from other countries like China; emphasis on temporary. Our ability to rapidly scale up domestic manufacturing is non-existent, so in the midst of a serious trade war, nearly every single thing Americans buy would skyrocket in price and decimate the already tapped-out consumer, leading to millions of laid-off service sector workers.

This is going to happen anyway, as China and others can increasingly afford their own cheap goods and don't need to export them to us, and the days of cheap debt are coming to an end very soon. It would just accelerate the erosion of what's left of America's economic fantasy. And none of this even touches on the dumping of US Govt. junk paper by a country like China, which would collapse the economy instantly into either an Argentina / Venezuela style inflation nightmare (as the Fed has to print ever larger sums to keep the government solvent), or a Greece slash & burn scenario.

Re: Musk: Tesla will have a factory in China

#18
post #8
post #5

There goes any trade secrets.

Yes, because Apple lost their trade secrets by having their factories in China, right?

Since when has Apple relied on trade secrets? They are all about product, branding, image, and experience.

Re: Musk: Tesla will have a factory in China

#19

The next-to-last sentence caught my eye: "The automaker recently announced that import tariffs and transportation costs will push the price of its Model S in China to $121,000, or roughly 50 percent more than the plug-in sedan costs in the U.S." We'll never hear it mentioned in American news, but we had import tariffs up until the 80s when we adopted supply-side economics as our ideology. We wonder why our manufactur…

I'm not an American and I'm what most people would call a "libertarian", but if you really do believe in "protection tariffs" then ask yourself if you're prepared to pay ~$1,800 for a PS4, for example. (http://www.destructoid.com/playstation-4-will-cost-1-850-in-...)

Re: Musk: Tesla will have a factory in China

#20
post #8
post #5

There goes any trade secrets.

Yes, because Apple lost their trade secrets by having their factories in China, right?

" If we published patents, it would be farcical, because the Chinese would just use them as a recipe book" - Elon Musk
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