Toyota to invest $1.3B in Kentucky factory to build battery packs and new EV

Post by thfuran » Wed, Feb 07, 2024, 3:03 PM UTC

anonylizard wrote: post #18

suoduandao3 wrote: post #14

Earlier quoted context omitted.

I do believe that Tesla's success in the last decade was in large part due to the fact it was the only technology company that could use all the money people were throwing at technology companies.

Softbank's belief was that throwing capital would just make things work. But from wework to many other of their startups shows its not the case. Telsa had to deploy their capital very efficiently in a capital intensive industry. Say their bet on the Shanghai factory, despite obvious IP leak risks and spawning deadly competitors like BYD, was their only choice to reach scale at a low cost.

Post by itsoktocry » Wed, Feb 07, 2024, 3:05 PM UTC

kjksf wrote: post #7

$1.3B seems like a lot of money but it isn't for a car factory, especially spread over many years. For context: Tesla is guiding for $10+B a year capex spending for the next 3 years. Nevada factory took $6.2B and Tesla plans to spend additional $3.6B Toyota is still under-investing in EV. $1.3B is nothing. https://www.tesla.com/blog/continuing-our-investment-nevada

Post by jonnycomputer » Wed, Feb 07, 2024, 3:07 PM UTC

earthwalker99 wrote: post #9

itsoktocry wrote: post #6

Earlier quoted context omitted.

> Ford made these same promises 2 years ago then bailed when the interest rate rose. Sometimes investment makes sense, and then things change and it doesn't make sense anymore. That's fair, isn't it?

Fair? What would that even mean? These empty promises are how we ended up electing Trump the first time and it's virtually guaranteeing that we'll elect him a second time. Rural Kentucky is in horrible shape and a lot of people here were placing hope in this, much like they have so many other empty promises from their leaders, so at least stop acting surprised when the consequences show themselves.

Post by brandonagr2 » Wed, Feb 07, 2024, 3:08 PM UTC

itsoktocry wrote: post #23

kjksf wrote: post #7

$1.3B seems like a lot of money but it isn't for a car factory, especially spread over many years. For context: Tesla is guiding for $10+B a year capex spending for the next 3 years. Nevada factory took $6.2B and Tesla plans to spend additional $3.6B Toyota is still under-investing in EV. $1.3B is nothing. https://www.tesla.com/blog/continuing-our-investment-nevada

> For context: Tesla is guiding for $10+B a year capex spending for the next 3 years. I know people around these parts think that Tesla has uncovered some magical factory building ability, but can you even consider the fact that maybe Toyota knows what they are doing? > Toyota is still under-investing in EV. $1.3B is nothing. This is one factory.

Post by newsclues » Wed, Feb 07, 2024, 3:10 PM UTC

api wrote: post #15

itsoktocry wrote: post #5

Earlier quoted context omitted.

I don't think there is such thing as manufacturing investment without subsidization any more. And it most often results in the Winner's Curse: the entity providing the greatest subsidies win's the "investment", but they give up so much in the process that the economic benefits are wiped out. See: Tesla in Buffalo, VW in Ontario, FoxConn in Wisconsin.

It's true globally too. China heavily subsidizes their industrial base as do many other countries. When everyone else is subsidizing you have to subsidize too or you lose.