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agsr

Elon Musk says 2 or 3 more Tesla Gigafactories are coming to the US

Fred Lambert 

- Jul. 15th 2017 3:17 pm ET 

Struggling to to fulfill demand for hot Tesla model 3, Musk is desperately looking to increase production capacity for his batteries by opening massive gigafactories.  This surpising decision to open in the US is certainly Trump-friendly and consistent with America first policy, but does US truly scale in cost and supply for something like this as compared to China?  Since Tesla is struggling really hard to keep model 3 as affordable, will decision to manufactur in the US put Tesla at disadvantage to other manufacturers who ate aggressively getting to electric car business and have large manufacturing outside of US?

I am on the fence for this one, happy to be persuaded one way or the other.

islander507

It is a really smart strategic decision. 

Musk needs strong support for Tesla and his other businesses from the government- regulations can make it or break it.  He just became Trump's poster child for creating Amercan jobs. What can be a better political story for Trump on his America First job creation strategy than this hugh butt chick kiss from Musk himself?  Now that Musk is a poster child he bought himself a nice seat at the real Trump table.  Win-Win.
Alternatively, if he would declare hugh new factories outside of US, he would effectively declare war to the new administration, and that is not something he can afford right now.