Having components built domestically should also improve upon just-in-time production as they won't need long lead times to ship product from overseas. They may realize more profits from not having to tie up capital in transit.
Perhaps the products might cost more to produce domestically, at first. But, in time they could drive down cost. And, they would make up for lower margin by being able to produce faster.
The advantage to technology is that costs tend to get driven down. While there are no guarantees in this instance, it is still likely.
Plus the economies of scale do enter. So if Tesla is constantly ramping up their production, they will gain there.
For now, I guess the gov't handing out money makes it viable to shift production.
Posted Using LeoFinance Beta