The big challenge no one speaks about is the auto workers' unions which will change the cost structure to produce these cars. This cost increase is coming in the next few years.
I disagree, although it may be potentially a problem in the future. It seems like Tesla however isn't using manufacturing techniques/processes that the rest of the industry follows.
Most of the assembly is done using advanced robots, the cost increase seems to be the support and the development of these robots.
The reason I appreciate tesla, is because it doesnt have all the legacy and baggage a traditional car manufacturer has, and thus they have the ability to try bold things. On top of it, they are doing it all in america.
Most car manufacturers have production plants in the US. I live in Alabama there are Mercedes, Honda and Hyundai plants. BMW is in South Carolina. Toyota Prius is built in Mississippi.
The land and power are cheap, the wages are reasonable and there is not a lot of union activity.
