Tesla’s problem, Australia’s missed opportunity
In between manipulating the stock market through his Twitter feed and snorting Provigil through a paper straw, Elon MusK has been building out his manufacturing capacity in China to service EM EV demand. China in and of itself isn’t a driver of Tesla’s profits. In August they made only 8,621 deliveries to Chinese customers.( https://www.investopedia.com/tesla-tsla-turns-on-the-charm-in-china-5203303 ). It seems like conspicuous signs of wealth are losing popularity in China. Wonder why? Ask Jack Ma.
Considering Tesla’s facing supply chain disruptions in China due to coal shortages (LOL) the honeymoon phase for Elon Musk and Xi Jinping may be over. His investment in China wasn’t just financial. They actually cut a tourism commercial for Xinjiang ( https://mobile.twitter.com/teslacn/status/1406277513517494272?lang=en ). See no evil, hear no evil, speak no evil. Cost of doing business in China.
But what options does Tesla have? What other country has the rare earth minerals, the space, and Elon has a serious fetish for solar panels so through in lots of sunshine as well. Only one country country fits the bill. That being Australia ( https://www.theguardian.com/environment/2021/apr/17/the-race-for-rare-earth-minerals-can-australia-fuel-the-electric-vehicle-revolution ). Sure they don’t have as big a population, but these factories are highly automated anyway.
So Australia is perfectly situated to ascend into EV dominance, except for one crucial ingredient. That being a functioning society. Elon hates covid restrictions, threatening to pull out of their Fremont California plant all together if exemption were not made ( https://www.cnbc.com/2020/11/20/tesla-gets-exemption-from-new-california-covid-19-health-orders.html ). I have a sneaking suspicion that if Australia ever got it’s shit together, a Tesla Gigafactory would spontaneously emerge in Melbourne from the machine elf dimension. But for now Elon’s stuck in China, sucking Xi’s dick, plotting his escape.
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September 29, 2021 at 09:42AM