Sending Tesla Model 3 production to Europe and hiring a contractor could solve Tesla's logistics problems and free up US capacity for Model Y.
needs to focus on production of its Model Y crossover, the market for which could be much larger than for the Model 3 in the US.Model 3 production to Europe and hiring a contract manufacturer could solve some of Tesla's logistics problems and free up US capacity for Model Y.
While BMW, Audi, Mercedes and other premium marques have stuck with their stalwart sedans, they've also been on a tear of introducing crossover SUVs. Meanwhile, Detroit is jettisoning mass-market saloons: Fiat Chrysler Automobiles, Ford, and GM have each moved in this direction over the past two years.
BUT ... what about Model 3? Well, in Q1 Tesla struggled to get the vehicles from California to Europe, contributing to a $700-million loss. Outside the US, there could still be some Model 3 demand to exploit. But any time wasted manufacturing it in the US is time robbed from Model Y.Magna is the world's largest auto contract manufacturer.Enter a contract manufacturer. The world's biggest is Magna. This Canadian firm builds vehicles for a variety of big names, including BMW and Mercedes.
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