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1/The benefits of increased localized production for $TSLA is not cumulative, its synergistic.
- Much lower shipping costs
- No tarrif costs
- Localized supply chain
...all contribute to lowering costs of the product...which enables a lower price for the same margin as before
- Much lower shipping costs
- No tarrif costs
- Localized supply chain
...all contribute to lowering costs of the product...which enables a lower price for the same margin as before
2/...those costs were greatly reduced. A lower price, in turn, makes $TSLA more competitive in the local market which, in turn, expands the addressable market. A 
market opportunity 
higher volumes built + sold which, in turn, lower the fixed cost per unit sold....
market opportunity higher volumes built + sold which, in turn, lower the fixed cost per unit sold....
3/...and in time, also lowers variable costs as Tesla needs more of all their parts as scale .
These cost savings, in turn, lead to higher margins - enabling another opportunity to lower price while maintaining margin.
We see this playing out right now in China. The same..
. These cost savings, in turn, lead to higher margins - enabling another opportunity to lower price while maintaining margin.
We see this playing out right now in China. The same..
4/...will happen in Germany, and eventually again in North America with Austin pushing out high volumes of Model Y.
Local production also enables a shorter sales cycle (time from when product is built to when product is sold). This, in turn, improves Tesla's cash flow. Higher...
Local production also enables a shorter sales cycle (time from when product is built to when product is sold). This, in turn, improves Tesla's cash flow. Higher...
5/...rate of cash flow is good because Tesla can better finance its operations and even invest in growth opportunities from cash it generates vs. relying on debt. As Tesla is less reliant on debt, its fiscal health will improve and it becomes less risky. As risk 
, it will get..
, it will get..
6/...an improved credit rating, and better terms on future loans/lines of credit. Better terms on debt means less interest costs, which help Tesla's profitability.
I can keep going, but you see the point.
The kicker? Tesla's plan is to generate downstream sales from all of...
I can keep going, but you see the point.
The kicker? Tesla's plan is to generate downstream sales from all of...
7/...their vehicle sales.
FSD, insurance, robotaxi and eventually SaaS/games will all drive additional, high margin sales from cars already on the road. Once this becomes a reliable stream of income, Tesla will be able to FURTHER drop price while maintaining margin. At a...
FSD, insurance, robotaxi and eventually SaaS/games will all drive additional, high margin sales from cars already on the road. Once this becomes a reliable stream of income, Tesla will be able to FURTHER drop price while maintaining margin. At a...
8/...much lower price than competition and with leading technology/range/specs, Tesla will hold a very high share of the market, and an even higher share of the VALUE in the market.
All of this enabled, in large part, to localized production.
Other noteworthy benefit:
All of this enabled, in large part, to localized production.
Other noteworthy benefit:
9/ A diversified manufacturing base and supply chain will reduce business risk. We saw what happened in Q2-20 when Fremont was shut down for 50 days...
$TSLA $TSLAQ
$TSLA $TSLAQ
