Part 6/10:
While the German government is unlikely to shut off power to Tesla’s factory outright, the real issue lies in economic viability. High electricity prices substantially increase operational costs, especially in Europe, where consumers and companies are more sensitive to energy prices. For instance, in recent months, European households and businesses have experienced electricity costs multiply by five compared to last year.
This escalation impacts consumers’ willingness to purchase electric vehicles (EVs), potentially dampening Tesla’s European demand. The key question is how sustained high prices will influence Tesla’s sales volume rather than whether the factory will halt production.