Part 5/11:

Historically, this move reactivates plans that had been put on hold due to tax incentives in the United States—highlighting how geopolitical and fiscal policies influence corporate decision-making. Reinvesting in Germany signals Tesla’s commitment to a robust European manufacturing ecosystem.

A Strategic Move Against Cost and Time Pressures

While manufacturing in Germany is approximately 30% more expensive than in China or the US—largely due to higher labor and operational costs—Tesla’s decision underscores the importance of resilience over short-term cost savings. Historically, companies consider low-cost regions to optimize margins, but Tesla’s approach prioritizes independence from supply chain risk and geopolitical vulnerability.