Miscellaneous News

vincent

Grumpy Old Man
Staff member
Moderator - World Affairs
Please, Log in or Register to view URLs content!

This is significant on surface. And it is more significant in what it means to global war on manufacturing or sourcing or offshoring or re-shoring, which are all relevant to what Trump wants.

In short, given what China already has in manufacturing eco-systems and technological eco-systems, it is very hard for high-cost models to compete against Chinese models in the same vertical business sector. NEV is just a classic example. I could have recalled electronics manufacturing service industry in good old days. The longer the timer ticks, the more acute this issue manifests to those high-cost competitors.

In this particular story of NEV, Tesla, like other electronics OEMs or ODMs before its being, has gained tremendous competitive advantages from Shanghai Giga Factory. If there were no Chinese native competitors, Tesla would have been sitting pretty. But facing formidable competitors such as BYD, Tesla global cost model is no longer efficient enough. In other words, it becomes a high-cost competitor.

I will let you guys translate what it actually means 5 years, 10 years down the road ......
Tesla has access to the full Chinese supply chain.
 

4Runner

Junior Member
Registered Member
Tesla has access to the full Chinese supply chain.
Well, technically, half-Tesla enjoys Chinese manufacturing eco-system, very similar to Flextronics in 2000 when Foxconn was second tier. Flex kept other half in high-cost area and Foxconn moved all-in to mainland. The rest is history ... I am pretty sure Tesla would end up in a similar bind ...
 

vincent

Grumpy Old Man
Staff member
Moderator - World Affairs
Well, technically, half-Tesla enjoys Chinese manufacturing eco-system, very similar to Flextronics in 2000 when Foxconn was second tier. Flex kept other half in high-cost area and Foxconn moved all-in to mainland. The rest is history ... I am pretty sure Tesla would end up in a similar bind ...
Tesla enjoys a walled garden (US and Canada) for its high cost production which Flex didn’t have the privilege of.
 
Last edited:

supercat

Major
Please, Log in or Register to view URLs content!

Never forget Copium Zone's comment section... :cool:

View attachment 148043
The average Americans know so little about China, it's ridicules. Even the poorest families in China have access to free basic healthcare service and most of them own their own homes.

LMAO. First the Houthis found out why Americans have no healthcare. Now they know why America's education system is a sh*tshow. BTW, how many years have Saudi Arabia and its coalition been fighting against the Houthis? Ten years?

Anyway China can probably block this deal. Some people may find this shocking but I don't. I lost count the number of times western governments blocked Chinese companies acquiring western semiconductor firms that weren't even that big. So why can't China do it too?
I doubt China can block such deals unless the port is majority owned by a Chinese SOE, such as the Port of Chancay.

Freedom of speech in the US, today's case in point:
 

siegecrossbow

General
Staff member
Super Moderator
Please, Log in or Register to view URLs content!

Never forget Copium Zone's comment section... :cool:

View attachment 148043

They are reaching the acceptance stage regarding CHAD though. Some of them even grudgingly acknowledged that it might be more formidable than American birds but since he is so sick of Chinese propaganda rubbing it in their faces he wants Boeing to revive the Bird of Prey as propaganda counter fire.
 
Top