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Tesla's Mexico Gigafactory is still a key piece of the company's future [Business Insider]
Last tesla, inc. earnings: 4/29 04:11 pm
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US:NASDAQ Investor Relations: ir.tesla.com
This article is part of " The Future of Supply-Chain Management ," a series on companies' manufacturing and distribution strategies. Tesla's Mexico Gigafactory is taking longer to come online than expected, but building south of the US border is still likely to be a key part of the company's future. An assembly plant in Mexico, where workers are typically paid less than in the US and which is closer to Tesla's Texas Gigafactory, may offer a cheaper manufacturing hub in North America that can still supply major markets like the US with more inexpensive vehicles. Efforts like the Mexico Gigafactory are part of a trend toward " nearshoring ," described as moving production closer to consumers to reduce costs and logistical complications. That's especially important as Tesla aims to keep its costs down to protect its profit margins at a time when customers are more price-conscious and more likely to consider hybrids over electric vehicles. Importing cars from China could create
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