Why is Berlin selected for the next Gigafactory?

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  • เผยแพร่เมื่อ 29 พ.ย. 2019
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ความคิดเห็น • 257

  • @CuriousElephant
    @CuriousElephant  4 ปีที่แล้ว +44

    The battery problem really is the most interesting for Giga Berlin, is Tesla Going to work with a Chinese company in Berlin for battery production? Let me know below. On a side note, although China now has 73 % of the world's Li battery production, China is by no means "dominant" as the industry depends on the accumulation of patents and Chines companies don't own most of the patents. In the patent field, China is growing fast, but the Korean & Japanese companies do still dominate with the sheer number of patents they have invented over the past decades. I would be happy to see more of Tesla's contribution here.

    • @pawegraczyk6050
      @pawegraczyk6050 4 ปีที่แล้ว +1

      Not that you are ugly or anything, but some video from Berlin wold be much better.

    • @akshit133
      @akshit133 4 ปีที่แล้ว +2

      The article is just one sided and motivated to give off bad impression of the company overall.
      And plus it's an electric car company and its like really at the front of the revolution of EVs so who the hell wouldn't want to buy it and at local manufacturing and plus the lower cost.

    • @grzegorzkapica7930
      @grzegorzkapica7930 4 ปีที่แล้ว +1

      Please cut your episodes to be shorter, if you have nothing else to say. Or is there a reason you prolong the episode@

    • @mattmcc7930
      @mattmcc7930 4 ปีที่แล้ว +3

      I think Tesla is moving towards producing their own cells.

    • @ekaa.3189
      @ekaa.3189 4 ปีที่แล้ว +2

      I'm betting both expanded battery production here in the US, and at Giga Factory 4 will be Tesla's own production.

  • @tillmannhein439
    @tillmannhein439 4 ปีที่แล้ว +104

    Hey Lei, this is Tillmann from Germany, and I think the problems for Amazon, Walmart and other companies are not the regualtions, rather the differrent work culture. When you are assembling for Mercedes, VW or Audi, you are used to 30 days off a year, extra pay for christmas and holidays, lots of right for the worker, (it is really hard for the Companie to unemploy someone if he is doing a good Job) and lots of other benefits that worker in US and China are not used to. German car manufacturing is a different story.

    • @ksinatra928
      @ksinatra928 4 ปีที่แล้ว +10

      Exactly. Manufacturing with dignity, not simply slavery.

    • @nilsfrederking62
      @nilsfrederking62 4 ปีที่แล้ว +6

      Tesla is working on reducing workforce as much as possible, take for example the new cable patent, to enable robots to install the cables - which did not work with flexible cables. 9000 employees is still a lot, but if Tesla manages to further automate they can afford to pay common wages in Germany. The wages in Germany are by the way not so high. And furthermore, there will soon be a time where traditional car makers will need to reduce workforce, so the unions will not have a very strong position.

    • @Ankit1pal
      @Ankit1pal 4 ปีที่แล้ว +1

      @Tillman Hein, you have said the absolute right thing! And moreover the developing countries like China and India don't treat the manufacturing workers well. They employ them as laborers and they most of the time won't have the basic rights because if he loses the job, there are 10 or maybe 100 others to take his place.

    • @antyspi4466
      @antyspi4466 4 ปีที่แล้ว +3

      Guys, you miss one thing:
      The Gigafactory is located NEAR Berlin, in the federal state of Brandenburg. East Germany (and especially Brandenburg) got hammered by the deindustralization following the fall of the wall, which resulted in a higher unimployment rate than in West Germany, which in turn means that federal governments and potential workers will go great lengths to secure these 9000 jobs.
      East German employees get lower wages, less vacation days and accept fewer rights than their western colleagues, even within the same company (yes, even when it comes to car makers like BMW).
      So Tesla will have a bit of an easier time then e.g. Ford in Cologne or Saarlouis.

    • @freegrammer6714
      @freegrammer6714 4 ปีที่แล้ว

      If Mcdonald & Burgerking can survive in Europe, so will Tesla. It is a new species and it will cut all the burocrat and political shits. People will queue to find a job in local gigafactory. Central banks will print money to feed dailylife. Now People work for dream... No body will provide tesla such forest land if it is a traditional car maker. European carmaker are wetting pants and hurrying to beg asian providers.

  • @CuriousElephant
    @CuriousElephant  4 ปีที่แล้ว +65

    and I know its not in Berlin precisely, but the city is 20 miles from central Berlin, clearly chosen to tap into the Berlin talent pool. :)

    • @Nonas63
      @Nonas63 4 ปีที่แล้ว +17

      Dear Curious Elephant, as a German (living in Berlin City), this is a major difference (for us). I am more than happy to see the GigaFactory to be in Brandenburg, but I am sad seening how the left (red)-wing politics here in Berlin (preventing any inovation) are now claiming this great investement for themselves. Unfortunately you will see only bashing against Elon Musk (Tesla, SpaceX) here in Germany. I am ashamed of our press.
      Nevertheless, I very much like your videos and looking forward seeing more of them.
      Best regards
      Tom

    • @BjorckBengt
      @BjorckBengt 4 ปีที่แล้ว +7

      Talents from all over Germany and beyond will be happy to move to Brandenburg if there are attractive positions. Few people expect to get attractive jobs in the place where they happen to live.

    • @clavo3352
      @clavo3352 4 ปีที่แล้ว

      @@Nonas63 Very interesting comment Tom. I applaud your candor. I suspect E. Musk has some international amicable cooperation in mind. He seems to be aware of how society interacts with technology and industry. Also Wasn't Einstein a Patent agent in Germany? They must have a good set of Patent laws and intellectual Property treaties Musk's investment team wants to take advantage of.

    • @glujaz
      @glujaz 4 ปีที่แล้ว +2

      I might be biased here as an aerospace engineer, but the talents a more located in Hamburg and Munich, not Berlin, where it's mostly service jobs, not engineering...

    • @aussie_al
      @aussie_al 4 ปีที่แล้ว +1

      I've always wondered if Elon has ever spoken to Skeleton Technologies in Germany. They produce the best ultracapacitors in the world apparently and I'm sure it would be a company that Elon would love to own.

  • @mariokajin
    @mariokajin 4 ปีที่แล้ว +51

    Meh as low is my knowledge of Germany, Berlin is certainly not a technology center. Those centers are Munich, Stuttgart, Wolfsburg and the Ruhr region. Berlin is a political statement to the iron curtain. Hence there’s an airport in construction for at least 10 years near Berlin and no end of construction in sight for another 5. And about Business Insider, they don’t have a clue about Tesla.

    • @carholic-sz3qv
      @carholic-sz3qv 4 ปีที่แล้ว +4

      I totally agree with you mate

    • @tillmannhein439
      @tillmannhein439 4 ปีที่แล้ว +5

      dude Berlin is just the largest City of Germany. that's like saying new York is just a buisness City. just not true. Certainly the Citys named are Citys with automobile industrys, but the whole supply chain is streched over the whole country

    • @Kuschi97Eli
      @Kuschi97Eli 4 ปีที่แล้ว +6

      Your statement is true for traditional car manufacturing but Berlin is the second largest start-up hub in Europe with over 40.000 new companies being incorporated every year. This attracts a lot of IT specialists. Cisco, Microsoft, several banks and Volkswagen have innovation labs there and Tesla is looking for exactly these types of employees to resolve technological and supply chain problems

    • @briannabernaola5597
      @briannabernaola5597 4 ปีที่แล้ว

      100% agree

    • @meamzcs
      @meamzcs 4 ปีที่แล้ว +2

      @@Kuschi97Eli Berlin has a lot of BS Start ups... The only start up that made it into the DAX in the last few years is from Munich... Berlin has "innovation labs" (if you speak german, listen to gunter duecks talks to hear more about these labs in big companies...) but where are the german Headquaters of the vast majority of the big (german and non-german) companies?... Most are in munich, Hamburg, near Stuttgart or in the ruhr area... Berlin is 100% not the IT hotspot in germany... Munich probaby is...

  • @TheMrGameszocker
    @TheMrGameszocker 4 ปีที่แล้ว +27

    "Berlin is at the center of Europe's supply chains and Population"
    - shows map where Berlin is quite far from the Center which looks to be Stuttgart

    • @michelbruns
      @michelbruns 4 ปีที่แล้ว

      「x」 that’s not how tesla is doing stuff..

  • @YR2050
    @YR2050 4 ปีที่แล้ว +49

    Not giving a damn about Bearish Insider.

    • @aussie_al
      @aussie_al 4 ปีที่แล้ว +2

      They are probably a subsidiary of CNBC. All in Tesla bashers with hidden agendas and cash for comment

  • @cucco1
    @cucco1 4 ปีที่แล้ว +15

    The Model 3 was the best selling car by far in not only the Netherlands but also Switzerland this year.

    • @kuunib7325
      @kuunib7325 4 ปีที่แล้ว

      How then can't I seem so lay my eyes upon a Tesla when I step outside? There are way more Teslas in The Netherlands. trust me I live in Switzerland and parttime in The Netherlands. Swiss people like SUVs more than EVs and natural gas more than nuclear energy, quite inexpliqable.

  • @alexfactory5426
    @alexfactory5426 4 ปีที่แล้ว +2

    Superb video and very well researched!
    Keep up the great work, Lei!
    (By the way: Where did you get these Tesla Manufacturing Videoclips from?)

  • @liketobi178
    @liketobi178 4 ปีที่แล้ว +23

    Berlin isn't that special when it comes to engineers and stuff. Most of the engineering companies are located in the south of germany. Not in Berlin, so I can't really understand where you got that from.

    • @adrianruthe.
      @adrianruthe. 4 ปีที่แล้ว

      The factories are now in the south because of the second world war.. when it comes to education, the techincal universities in germany are very equal (I am at the Technichal University of Berlin).

    • @liketobi178
      @liketobi178 4 ปีที่แล้ว +1

      @@adrianruthe. Yea I didn't mean that the Berlin's are less educated. But Berlin isn't the most famous in Germany when it comes to engineering.

    • @adrianruthe.
      @adrianruthe. 4 ปีที่แล้ว

      @@liketobi178 yeah thats true! Berlin is more famous for party haha

    • @derbou7589
      @derbou7589 4 ปีที่แล้ว

      Even if the "Berliner" are not that smart, there will be a few thousand acceptable engineers available for this kind of work. The processes in this plant will be simple that there will be not that much brain needed. The production line will be build by Grohmann engineers. No Problem. And I could imaging that several tens of thousands of engineers will be fired at other german automakers until the plant will start production.

    • @liketobi178
      @liketobi178 4 ปีที่แล้ว +1

      @@derbou7589 Yea that's all clear. I just wanted to clear things up with my comment. Of course there are many talented people in Berlin, but it is false to say that Berlin is the hotspot of german engineering.

  • @evaristegalois8600
    @evaristegalois8600 4 ปีที่แล้ว +7

    Another advantage of building a factory in Berlin is that Tesla will not have to Paid a taxe for imported cars
    ( less cost=more demand)

  • @jamieoglethorpe
    @jamieoglethorpe 4 ปีที่แล้ว +3

    The factory will be in Brandenberg, formerly in East Germany. The area is still catching up with the West, so labour costs are lower and I expect that the locals will be more excited working for Tesla than their compatriots in the west. It is entirely analogous to setting up in Nevada vs California.

    • @tillmannhein439
      @tillmannhein439 4 ปีที่แล้ว

      this is not true. Its not like the eastern Part of Germany is stuck in the past decade,espacially in the town around Berlin. the cheaper Labor cost is not an argument for building the factory where it is right now

    • @jamieoglethorpe
      @jamieoglethorpe 4 ปีที่แล้ว

      Tillmann Hein, I was thinking of getting permission and support from the authorities in the East, and that the people would be more excited by the prospect.
      I speak from ignorance.
      If salaries were at all important, Tesla could have gone to the Czech Republic or Silesia. I believe that access to suppliers and expertise was as important as labour in the decision.

  • @archanamehrotra741
    @archanamehrotra741 4 ปีที่แล้ว +17

    Well I'm totally in Tesla's support but Netherlands does have the highest incentives for evs

    • @pleasednut3881
      @pleasednut3881 4 ปีที่แล้ว +1

      it was a hard decision for sure, but in the end Berlin had better expertise in engineers, not *just* a growing market.

  •  4 ปีที่แล้ว +24

    I love to see how you're developing your skills, prime content my friend, keep it up!

  • @ironqueen_osrs
    @ironqueen_osrs 4 ปีที่แล้ว +17

    0:30 I don't think this map is right, the Netherlands (west of Germany) is the most densely populated country in the EU

    • @cucco1
      @cucco1 4 ปีที่แล้ว +1

      Same thoughts. Switzerland only has about half of theirs

    • @byronperry8931
      @byronperry8931 4 ปีที่แล้ว

      England is 2nd most densely populated in eurooe as well

    • @nicolaspeart3910
      @nicolaspeart3910 4 ปีที่แล้ว +1

      and Poland density is 124 people/km2 while Finland is only 18 people/km2.. in map it shows wrong

    • @cucco1
      @cucco1 4 ปีที่แล้ว

      Maybe they flipped the points and the colors 😂

    • @antyspi4466
      @antyspi4466 4 ปีที่แล้ว +1

      Also, the description of the coloring scheme is weird. ">20%" of what? Population density??
      That doesn´t make any sense.

  • @callysadventures6315
    @callysadventures6315 4 ปีที่แล้ว +8

    I live in Berlin but at the moment the big industry players like siemens /PM Motorola... Closes their factorys here due to the high labor cost... I don't know but there are a lot of cheaper places in Germany with an equal amount of high skilled workers and engeniers

    • @cdefgah4343
      @cdefgah4343 4 ปีที่แล้ว +1

      Well, usually the tech viants and big companies are in the south, especially Munich. So I thought this was too expensive and Elon choosed Berlin instead. But yes, it's still better (and more expensive) than the Saxony region.

    • @kuunib7325
      @kuunib7325 4 ปีที่แล้ว

      Y not build the factory in the Czech republic?

    • @fjellyo3261
      @fjellyo3261 4 ปีที่แล้ว

      Siemens is investing in Berlin again. The Siemensstadt 2.0 is going to be constructed. Siemens is going back to its roots.

  • @danielm2058
    @danielm2058 4 ปีที่แล้ว +4

    Arround two years ago there were rumours that it would come to my hometown in Portugal

  • @abhishekdev258
    @abhishekdev258 4 ปีที่แล้ว +38

    Did Elon Musk refuse to donate to business insider.

    • @r-saint
      @r-saint 4 ปีที่แล้ว +6

      Tesla doesn't buy any ads. That's why all 'business' outlest can be easily outbought by big oil.

    • @IvanIvanov-yd2wv
      @IvanIvanov-yd2wv 4 ปีที่แล้ว

      For sure!! As well to CNBC and bunch others

  • @thesadboxman
    @thesadboxman 4 ปีที่แล้ว

    What are those books in your background BTW?

  • @Jack-tx6ei
    @Jack-tx6ei 4 ปีที่แล้ว +5

    I think Tesla will have problems with unions, which are traditionally very big in all automotive companies in germany. Tesla especially had a lot of issiues with worker treatment, so if they dont adapt right from the get go, they will have a very rough start.

  • @glujaz
    @glujaz 4 ปีที่แล้ว

    There is one critic here about the location. Electric vehicles are used to reduce CO2 emissions. It has a flaw thought : production, mostly because of the electricity use. Germany is very bad on that as it uses mostly coal.
    There are only 3 countries in Europe which have a low carbon emission electricity: France, Norway, and Sweden (add also Finland). Although the last countries are quite far of Europe's economic Center, east of France might have been a very good option in my opinion, and france's automotive industry is definitely not bad at all... so yeah, that's my only critic here ^^

  • @ohnowell
    @ohnowell 4 ปีที่แล้ว

    I'm honestly fascinated by these statements from 'journalists' because they seem to forget (or didn't even bother to look into) that Tesla has an assembly factory in the south of the Netherlands, and has had an EMEA team for years. Sure, they might come across other (cultural) obstacles with building a gigafactory, but it's not like they're just diving into this blind.
    On the other hand though, I truly would like to know why they chose the Berlin area and not the south of Germany. You can even see on the maps in the video that the south is definitely the more 'automotive area', and this is also what my German friends told me (that are in the automotive field).

  • @jizzlecizzle1388
    @jizzlecizzle1388 4 ปีที่แล้ว

    There's a massive problem regarding the 2:06 statement.
    It can't be a car unit volume, yet it is implied it is.
    In 2018, 443.812 were sold in the Netherlands:
    carsalesbase.com/total-market-sales-country/netherlands-car-sales-data/

  • @zainasani2206
    @zainasani2206 4 ปีที่แล้ว

    Thank you for the clarification... I was a bit skeptic after reading the article... Other than that, what do YOU think will be the location for giga factory built after Berlin?

    • @leifjohnson617
      @leifjohnson617 4 ปีที่แล้ว

      My instincts tell me the next Tesla gigafactory will be built close to Austin, Texas and it will produce the Cybertruck. Why? First, the demand for Cybertrucks in Texas will be huge. Second, Austin is chock-a-block with engineers. Third, Texas is close to a lot of the farm states where pickup truck sales will also be ginormous.

  • @cyrilio
    @cyrilio 4 ปีที่แล้ว

    Could you do an analysis of the sales projections for Cyberteuck in Europe? Is there even demand for such a thing?

  • @testbild9652
    @testbild9652 4 ปีที่แล้ว +10

    Greetings from Germany. You are so right. Everything you told us is correct. Thx for clarification.

    • @superitgel1
      @superitgel1 4 ปีที่แล้ว

      German engineers are the best. Proof: see ilmango

  • @SanidhyaKPatel
    @SanidhyaKPatel 4 ปีที่แล้ว +10

    recently even bmw announce a partnership with chinese CATL,

    • @steveo6034
      @steveo6034 4 ปีที่แล้ว

      That’s exactly how China gains its tech know how. Before long China will copy the tech and kick BMW to the curb.

  • @TheThirdLieberkind
    @TheThirdLieberkind 4 ปีที่แล้ว +6

    looking forward to see weekly drone footage updates of Gigafactory Berlin :)
    also, music is slightly too low in this one

    • @limiv5272
      @limiv5272 4 ปีที่แล้ว +3

      I like the low background sound, makes it easy to understand what he's saying

    • @theawsomemax
      @theawsomemax 4 ปีที่แล้ว +1

      Limi V same, it’s perfect the way it is

    • @berndm9411
      @berndm9411 4 ปีที่แล้ว

      No Way you can do that in Germany. Its almost impossible to fly drones legally, because every new technology gets restricted here

    • @FreeStuffPlease
      @FreeStuffPlease 4 ปีที่แล้ว

      I've never noticed a youtube channel that does this but if they used a separate audio editor like FL Studio, they could mix the background music and voice over, allowing the background music to be louder except when they are talking. Shame everyone focuses on video editing and not as much when it comes to audio.

  • @EinChris75
    @EinChris75 4 ปีที่แล้ว

    Technically it's not even Berlin, but Brandenburg they are building the factory.
    Brandenburg is the federal state which surrounds Berlin. The map you have shown right at the beginning, outlines Brandenburg, Berlin is the small area in the middle of it.

  • @jakobmiddelberg2938
    @jakobmiddelberg2938 4 ปีที่แล้ว

    Hi Lei,
    it's Jakob from Germany. First of all let me say that I really like the way you approached the topic. Talking about overcapacity and demand of the automotive industry in all of Europe is a great opener. Especially now, since certain german cities start banning diesel engines and infrastructure for electric cars is being expanded rapidly, electric mobility is a topic that is widely discussed in Germany. In 2018 the amount of new electric cars being registered grew by 24% compared to 2017 (new numbers aren't out yet...), so you can see how the interest in electric cars is growing.
    (www.stuttgart.de/en/diesel-ban; www.vda.de/de/themen/innovation-und-technik/elektromobilitaet/elektromobilitaet-in-deutschland.html)
    But still: As someone who is currently going to university to study mechanical engineering, it annoys me to hear somebody say that Berlin is "the automotive heartland of the european continent". To be fair, as a german I am proud of the quality and reputation of german engineering. But let me tell you this: The city of Berlin isn't exactly famous for it's engineering and industry. In fact, it's famous for everything but a strong automotive industry. Most automotive companies and suppliers are found in southern states like Bavaria and Baden-Württemberg. Here you will find massive factories of Audi, BMW, Mercedes, Porsche, Bosch and many other huge companies. If you're looking for bright engineers, you'll be seearching in the south and in the west, too. Probably the most renowned universities are situated in Aachen, Munich, Karlsruhe and Darmstadt - look it up on a map, they're nowhere near Berlin. So saying Berlin has a pool of the best and brightest engineers in the world isn't exactly true since a) there are over ten times as many students graduating in engineering n countries like India and China compared to Germany every year, and b) in Germany the most talented engineers are nowhere to be seen near Berlin, especially in the automotive industry.
    Sooo, speaking of Berlin as the center of european automotive industry seems like a long shot to me, and a lot of my friends feel the same. Sometimes, you make it seem like you are confusing Berlin with Germany, for example when you're talking about labour laws and regulations: " If GM and Ford can do well in even China [...] Tesla can truly do well in Berlin." or "building [...] even more factories in Berlin, in China, in the United States [...]".
    I feel terribly sorry to say this but please, when you talk about factors that come into consideration for a new production plant, just look up at least a couple of your facts on a map. Here are some:
    www.marklines.com/en/global/deu
    www.meyer-industryresearch.com/top-100-automotive-suppliers-germany/
    www.google.com/maps/d/u/0/viewer?msa=0&mid=1GqKhN_qT6FsLh1XZE6udzWTwLU0&ll=50.67877522295477%2C9.861061500000005&z=6

  • @senthilkumarn4u
    @senthilkumarn4u 4 ปีที่แล้ว

    Thanks for the info...

  • @nilseller2206
    @nilseller2206 4 ปีที่แล้ว +1

    As a German, the things Tesla underestimates in my opinion and which could lead to long term problems are the strict regulations in Germany, labor union, work ethic and really long bureaucratic processes for permissions ... i hope they can solve those ✌🏼

    • @briannabernaola5597
      @briannabernaola5597 4 ปีที่แล้ว

      I was thinking the same.... the work's culture in Berlin is not as strong as in the south (Bayer and Baden Wuttenberg).

  • @runhome2251
    @runhome2251 4 ปีที่แล้ว

    Can you make a video on the cyber truck?

  • @JoshGrossman
    @JoshGrossman 4 ปีที่แล้ว

    The fundamental question raised is whether it's more efficient to retrofit an existing factory near Berlin or to build a new one. This assumes that another car manufacturer would sell an underutilized factory to Tesla in the first place. Assuming that Tesla would need to replace all equipment in any existing factory, we are left with the cost of a new and empty building, vs the cost or buying a used factory and emptying it. I don't think this difference is on a scale that would significantly impact Tesla. I imagine this would be on the order of 10s or millions of dollars. As for which is faster, building a shell should be under 6 months and emptying a factory is much less. Finally, the form factor of an existing factory is challenging to the efficient layout of a giga factory. Since Tesla is concerned with optimizing the "machine that makes the machine", each new Giga Factory built is another chance to refine this core skill, while a retro fit is a one off process.

  • @paulaugustino3381
    @paulaugustino3381 4 ปีที่แล้ว

    by the time Berlin gigafactory is built, the level of AI robotics involved in the manufacturing process will only require a small percentage of labour to run it compared to freemont and gigafactory 1
    Elon has stated that Teslas goals have always been to evolve the automated aspect the manufacturing process.
    So the best engineers to design and maintain the robotics is the critical thing here. The writing is on the wall. its clear to see how things will play out unless some unforeseen disruption occurs. Vertical supply chain integration culminating with FSD direct delivery from factory to customer essentially eliminating multiple layers of labour.

  • @gearloose703
    @gearloose703 4 ปีที่แล้ว +3

    I find it funny when someone tries to assess musks decisions through reason.

  • @Malcolm61
    @Malcolm61 4 ปีที่แล้ว +1

    Overcapacity of Car Manufacturing is not a Government Issue. The individual car manufacturers need to produce the Cars (Electric) that consumer want. The strongest will survive the weakest close, merge and close down plants. The EU does not produce competitive Electric Vehicles. BMW, VW, and Mercedes, Renault, Peugeot are trying but are not comparable with Tesla on range, performance and price. Therefore Tesla has a great chance to take market share before the European car manufactures can produce one. There is also a bigger market for Model 3 and Model Y in Europe than their is in USA.

  • @bandvitromaniaios1307
    @bandvitromaniaios1307 4 ปีที่แล้ว

    I heard that an a Gigafactory will open in Romania too..

  • @Star-Man
    @Star-Man 4 ปีที่แล้ว +3

    I love the quality of your videos. Keep up the amazing work!!

  • @mmanjin
    @mmanjin 4 ปีที่แล้ว

    The vehicle market saturation argument made by Business Insider for the European market may be true for ICE vehicles but is not a logical or valid argument for EVs. In fact for EVs is the exact opposite which is validated by Tesla's surging sales in the European market and worldwide for that matter where it's crushing the ICE vehicle competition.

  • @nilsfrederking62
    @nilsfrederking62 4 ปีที่แล้ว +1

    "The market is saturated" They have really no clue, the EV market is starting to open up, it is relatively small now, but will grow exponentially soon. I suppose Tesla does not need the equipment of factories from other car companies, but would need to pay for it. And I suppose it makes more sense and is faster to replicate a successful design (Shanghai Gigafactory) than retrofitting an existing plant which would always result in negative compromises.

  • @hans-martinadorf3834
    @hans-martinadorf3834 4 ปีที่แล้ว

    Why do you think the best (technical) experts can be found in Berlin? As far as I know, based on international ratings, the Technical University of Munich (TUM) has a higher reputation than both Berlin-based universities.

  • @nyancat2403
    @nyancat2403 4 ปีที่แล้ว

    The german car market is really difficult today due to factors like renewable energy shift, a changing political system, the VW scandal etc.
    Mercedes and Audi have both declaired to give up jobs in the next years (Audi for ex. 9500 jobs).
    Germany has high potential but is also a high risk..

  • @wholenutsanddonuts5741
    @wholenutsanddonuts5741 4 ปีที่แล้ว +2

    Fascinating look at the EU cost/benefit problems. Do you think Eastern Europe is a potential local market for this factory?

    • @jmonsted
      @jmonsted 4 ปีที่แล้ว +2

      Quite a lot less than western Europe. Germany makes perfect sense for reaching the rest of Europe.

  • @zalphero618
    @zalphero618 4 ปีที่แล้ว +2

    Netherlands has the best EDM hardstyle music shows.

  • @takanara7
    @takanara7 4 ปีที่แล้ว

    One of the reasons Tesla went with a battery "supplier" is intellectual property laws, something they'll be able to get around with their purchase of Maxwell. One of the interesting things is that Tesla isn't even using Lithium Ion batteries in China, but rather NMIH batteries from LG Chem. But that said, Chinese battery makers, who sell their batteries in the Chinese domestic market probably don't need to worry about western patents.
    But the funny thing is Tesla basically makes it's own batteries and pays a licensing fee to Panasonic. Like literally, They're made in Tesla's factory, Tesla designs the production line, Panasonic just "leases" space in the factory for the batteries. Most likely, Tesla can't wait to get rid of Panasonic, which they think has made the batteries too slowly.

  • @vitodibernardo9807
    @vitodibernardo9807 4 ปีที่แล้ว

    I'm not sure if the population density map of Europe is correct...

  • @AnthonyGriz
    @AnthonyGriz 4 ปีที่แล้ว

    Gigafactories outside of the USA makes sense, because of the coming US depression, and both European and Asian markets will be more likely to better survive the $USD collapse and ensuing depression starting 2020. Of course, the US will likely start another major war to try to rebuild from the largest depression since 1929, but hey, either way, Tesla going outside the US for production makes complete sense to me.

  • @danielcrow6219
    @danielcrow6219 4 ปีที่แล้ว

    This is a great channel

  • @wengin
    @wengin 4 ปีที่แล้ว

    I’m so happy about Tesla’s decision because it will put a lot of pressure on our car manufacturers here in Germany. Many people still think that electric cars are not the solution of the environment problems. Having a successful EV company around should help to prove them wrong. Also it’s a great opportunity for our engineers to learn about EV technologies plus Tesla can benefit from our German engineering skills from the old car industry. Was so happy to hear the announcement from Elon Musk at the “Goldene Lenkrad “ event.

  • @theoschijf8155
    @theoschijf8155 4 ปีที่แล้ว

    Great channel. You need more views. Please share!

  • @ironqueen_osrs
    @ironqueen_osrs 4 ปีที่แล้ว +4

    2:00 The Netherlands had a few tax benefits for tesla's that will run out in january 2020, so the sales of tesla's will go down drastically

  • @macjonte
    @macjonte 4 ปีที่แล้ว

    Could get interesting if they cooperated with northvolt. 🇸🇪

  • @kenyup5424
    @kenyup5424 4 ปีที่แล้ว

    Please do a video about why Panasonic no more supply batteries to the Tesla Shanghai factory

  • @Gabriel-iq6ug
    @Gabriel-iq6ug 4 ปีที่แล้ว +3

    OMG this time the European cities seams to be well located on the map 😉

  • @zoharion8644
    @zoharion8644 4 ปีที่แล้ว +1

    Je valide à 100% ton analyse.

  • @luism5514
    @luism5514 4 ปีที่แล้ว +1

    Tesla could potentially be a storer of value, appreciating asset like Elon described. This will bode well for any coming global financial crisis given the already heavily debt laden global markets.

  • @lowlandtech
    @lowlandtech 4 ปีที่แล้ว

    I think most of you are missing half of the business plan for Tesla. Its not about cars. Its about tesla's business convergence with its sister companies, boring (transport), energy (storage, transmission and generation) and communication (spacex). The synergy of these companies will make tesla the biggest richest companies this world has ever seen in the 21st century. The giga factory is just a means to an end. Cars are just the trojan horse Tesla inserts to get a foothold in this new market. If you really want to know what tesla really is go watch Now You Know channel's series on elon musk, tesla and its sister companies. Its really a breathtaking plan. A master plan on such a scale the world has never seen before.

  • @shannonlove4328
    @shannonlove4328 4 ปีที่แล้ว +4

    Arguably, electrical vehicles don’t compete head to head with IC vehicles in that consumers have demonstrated a special demand for electrical vehicles.
    The over saturation argument doesn’t really apply because people that wouldn’t bother to upgrade to an IC vehicles will upgrade to a Tesla.

  • @VictorECaplon
    @VictorECaplon 4 ปีที่แล้ว +23

    Business insider is so biased against Elon it’s not even a reliable source anymore. I like criticism but not toxic obsession !

  • @konseq1537
    @konseq1537 4 ปีที่แล้ว

    Buying overcapacity from other car manufacturers is simply not possible in a short term perspective. In automotive industry manufacturing lines are highly specified for one manufacturers needs and car models. This can't be retro fitted quickly (if at all) to a different model. So you might as well build your own factory and then have full control over the plant. The guys at business insider clearly have zero knowledge about automotive industry. Their suggestion might work for things like smartphones but not for automotive.

  • @DDD-wt7ly
    @DDD-wt7ly 4 ปีที่แล้ว

    They will be making their own batteries by 2021

  • @superitgel1
    @superitgel1 4 ปีที่แล้ว +1

    German engineers are brilliant. Just see the factories made by ilmango in Minecraft.

  • @erichaynes7502
    @erichaynes7502 4 ปีที่แล้ว

    Another great video Lei, this is the first time I've seen you a little confused about what's exactly going on in the worldwide battery market. I think it's simply a case of Elon getting a foothold in the three biggest markets - U.S., China, and now Europe.

  • @richardalexander5758
    @richardalexander5758 4 ปีที่แล้ว

    Tesla is set to become one of the biggest manufacturers of batteries themselves, as evidenced by the acquisition of Maxwell Technologies and Hibar Systems.

  • @alexmckenna1171
    @alexmckenna1171 4 ปีที่แล้ว

    That Population Density chart looks wrong to me.. The chart is probably the percentage of population who eat German sausage, or Italian equivalents.

  • @KoZeroSM
    @KoZeroSM 4 ปีที่แล้ว

    Wish those guys from BI see this

  • @akashjoseph1313
    @akashjoseph1313 4 ปีที่แล้ว

    Growth of Huawei after restrictions ?

  • @VilleHyytiainenInvesting
    @VilleHyytiainenInvesting 4 ปีที่แล้ว

    The real question is what is the price difference on building new factory or buying an old plant and how much more efficient the new factory is producing EVs?

    • @BjorckBengt
      @BjorckBengt 4 ปีที่แล้ว

      The machine that makes the machine must follow the GF3 blueprint. This probably includes the factory building. A traditional factory has twenty smaller buildings. Gigafactory 3 has two buildings. The logistics are probably superior. Fremont is a mess due to the inherited layout.

    • @VilleHyytiainenInvesting
      @VilleHyytiainenInvesting 4 ปีที่แล้ว

      @@BjorckBengt Yes I know all of that it didn't asnwer to my question.

    • @BjorckBengt
      @BjorckBengt 4 ปีที่แล้ว +1

      @@VilleHyytiainenInvesting The Fremont factory cost $50 million, i.e. nothing, which was a huge incentive at the time due to financing difficulties but I am quite certain that building a new factory pays off, regardless of if you get an old one for free. Retooling is a large part of the cost and also takes time. If production cost is $10 000 per car at 500k/year a 10% efficiency ($1000/car) improvement pays off the difference for a new factory in 2-4 years. Easy decision. We don't have any figures to work with but we can still make estimates.

    • @VilleHyytiainenInvesting
      @VilleHyytiainenInvesting 4 ปีที่แล้ว

      ​@@BjorckBengt Thats quite good way of doing quick estimate. If they saved 1 billion by buying an old plant. With 300 000 yearly production and 1k savings per unit would pay it back in less than 4 years. 10% savings per unit are too high but only around 3% unit saving should make it worth it with these number assumptions. If the new plant cost 2 billion more thats still only 7 years payback time which would give the investment double digit ROI.

    • @BjorckBengt
      @BjorckBengt 4 ปีที่แล้ว

      @@VilleHyytiainenInvesting I think 10% is on the low side. Inefficiencies accumulate. If parts are not in place for assembly it becomes costly. If you have to transport the bodies between lines and storage etc you loose a lot. If you damage the bodies due to awkward handling the cost is huge. There are so many ways you can lose efficiency. Some is time and manpower but there are also inefficiencies in mistakes and damages and rework if not everything lines up perfectly. Most old plants are expanded and rebuilt over the years and may have started out with some logic but lost it over the years as more buildings have been added.

  • @Peter-oh3pm
    @Peter-oh3pm 4 ปีที่แล้ว

    Population Density picture seems to be very much wrong.

  • @kloetzchenbauer1798
    @kloetzchenbauer1798 4 ปีที่แล้ว

    Finally someone, who pronounces Volkswagen korrekt...

  • @flippert0
    @flippert0 3 ปีที่แล้ว

    The European market maybe overcrowded for combustion-engine cars, but Tesla manufactures electrical vehicles (duh), it has with the exception of VW no real competitor at the moment. BMW and Mercedes are selling luxury vehicles not electrical vehicles for the mass market. This being said, Berlin is not the technological center of Germany (as others alreday have pointed out). That would be the south (Stuttgart, Munich, Ingolstadt), but also Wolfsburg. The choice for Berlin is a political statement and (probably) cheap real estate prices and taxes may have helped, too.

  • @RoscoeJames
    @RoscoeJames 4 ปีที่แล้ว

    We must never forget how many times Elon has said building the car is easy. The hard part and important part is building the machine that builds a machine. Makes no sense to me, and I bet it makes no sense to Elon, to take a factory you have to tear the inside down in order to rebuild and adapt. Very clear to me. The problem of local laws? I was surprised when he went to China. But it appears he got the concessions he wanted. Including the most important no other US company has - 100% ownership. No partnership with the Chinese government. So I imagine he's considered the possibilities and has a game plan for Germany. Consider this - I imagine Elon could get shuttered GM, Ford, or Chrysler plants anywhere he wants and cheap. He could probably get one right in the heart of Detroit really cheap. But he won't. Because the machine he builds to build the machines is more important. I expect Freemont will eventually be replaced with a new giga factory.

  • @dlewis8405
    @dlewis8405 4 ปีที่แล้ว

    I think the Berlin factory will be the last big factory Tesla builds from scratch. With a car factory on every continent they will shift the production mix to match the demand (Model 3, then Semi, then Cybertruck....). Look how Model S and X production shrank as Model 3 demand cannibalized those sales. The Tesla story will be about autonomy and technology in the 2020s, not production. As a boutique automaker they will always struggle to be profitable, especially with big players bringing EVs to market soon.

  • @teyibmhd9797
    @teyibmhd9797 4 ปีที่แล้ว

    I know now where all the other youtubers get their Tesla's informations.........from you......good job

  • @neilfordan
    @neilfordan 4 ปีที่แล้ว

    Why do we always assume people will fail?

  • @gerrycrisostomo6571
    @gerrycrisostomo6571 4 ปีที่แล้ว

    This is an outstanding strategy for Tesla. Electric vehicle demand in Europe is increasing rapidly especially for Tesla cars. Yes there is a rapid decline of vehicle sales in Europe but that is only for the fossil fueled cars. Most of the people want electric cars these days and the great demand for EVs in Europe especially for Tesla is much greater than the current production capacities so Tesla needs to build a plant there that will cater to the European people. Now regarding the battery concern, that is not a problem. Since Tesla acquired 2 battery manufacturing companies, Maxwell (U.S.) and Hibar from Canada, they now have the capability to manufacture their own higher quality batteries. So all in all, this is a good move for Tesla.

  • @hans-martinadorf3834
    @hans-martinadorf3834 4 ปีที่แล้ว +1

    In view of the relatively small population of the Netherlands, your annual Tesla sales figures cannot. be correct.

  • @emanuelvlaicu9319
    @emanuelvlaicu9319 4 ปีที่แล้ว

    An where should I change it?
    I won’t buy a electric car till I can charge at any gas station!

    • @abhishekdev258
      @abhishekdev258 4 ปีที่แล้ว

      Where ever Tesla operates it first opens charging stations

    • @helmshardover
      @helmshardover 4 ปีที่แล้ว

      Why? Your Tesla monitors your destination & state of charge & informs you of all options along your route.

    • @emanuelvlaicu9319
      @emanuelvlaicu9319 4 ปีที่แล้ว

      Scott Brown Lets just say I don’t want to plan my trip around charging stations and I would like to know I can charge my car in “less developed” countries too. I live in Europe.

  • @helmshardover
    @helmshardover 4 ปีที่แล้ว

    They will be aiming for "own brand" batteries. Why else would they purchase Maxwell Technologies and Hibar Systems?
    Elon said recently "if there's one thing for sure, Tesla now knows a LOT about batteries".

  • @Ferelmakina
    @Ferelmakina 4 ปีที่แล้ว

    Should have been in malaga

  • @Idontgivechainsaw
    @Idontgivechainsaw 4 ปีที่แล้ว

    Too bad its not Poland :( It is close though.

  • @MTerrance
    @MTerrance 4 ปีที่แล้ว +1

    Gigafactory dammit. Tesla needs an integrated facility (which blows the idea of taking over some existing plant and retrofitting it) in which it will manufacture batteries, car bodies, control systems, you name it. It will be making its own batteries (either directly or through a partner) so forget the question of where it will get batteries (That was one of Elon's first conclusions). Don't think Elon has given up on a highly automated production process - he backed up when he over- automated, but everything he has done in refining vehicle design has been aimed at reducing the labor cost per vehicle. The whole thing with reducing the wiring costs was to allow far lower labor costs for the wiring. That means he intends to offset higher labor unit costs in Germany by needing far less labor overall per vehicle. Finally, if Elon has ignored the complexities of European manufacturing or regulations, it will be the first time he has been that stupid, which I really doubt is the case. It reminds me of the countless couch potatoes watching the NFL every Sunday confidently second guessing coaches as though they could do better. Guess again.

    • @gearloose703
      @gearloose703 4 ปีที่แล้ว +1

      If anyone knows how to do those things, it is germans. At least this time tesla won't need to be flying german engineers back and forth all the time.

  • @MyName-mo7fw
    @MyName-mo7fw 4 ปีที่แล้ว +1

    How could 17 million buy 427 million?

  • @killernat1234
    @killernat1234 4 ปีที่แล้ว

    Business insider is wrong, Germany is the home of some of the biggest vehicle manufacturers, BMW, Audi, Mercedes and VW just to name a few, Tesla could buy a factory but it might not have the vehicle output capacity, Europe is a hotspot for electric vehicles, having Tesla’s production thousands of miles away isn’t cost effective to ship them across the world, and goes against the reduction in emissions

  • @indycar1007
    @indycar1007 4 ปีที่แล้ว

    Help me out why can Formula E racing have a power plant 2.5 time the power and more then 1/2 the weight then the best Tesla? The power unit has regeneration and is small enough to fit a very height challenges racing body. So why the heck is Tesla forcing lower power, heavier in weight and much less power 85 vs 200 ( peak 250 ! )? Think how far you could go... E buddy head out of your backside, if you were serious you would use a blend of tech as yes colder temps also need to be considered. But that amt of power can keep the batteries in range at all times.

  • @grzegorzkapica7930
    @grzegorzkapica7930 4 ปีที่แล้ว +10

    Most of the workforce will come from Poland. You'll see.

    • @timgreller
      @timgreller 4 ปีที่แล้ว +3

      Deutschland eben.
      /s

    • @adalmar
      @adalmar 4 ปีที่แล้ว

      Then tell me why tesla will not build the factory in poland?
      Doesn't it make more sense to build the factory where the workforce is?

    • @volkhen0
      @volkhen0 4 ปีที่แล้ว +2

      It’s only 45 minutes from Poland. Already many Polish people work in Berlin and drive home to Poland. I would work for Tesla myself if I had lived close to the border.

    • @adalmar
      @adalmar 4 ปีที่แล้ว

      @@volkhen0 Maybe you are right.
      Maybe they don't want anyone from the berlin region with 4.5 million inhabitants, maybe they are really interested in the polish border region.

    • @hanhdhsj
      @hanhdhsj 4 ปีที่แล้ว +1

      @@adalmar They want the german engineers and polish workers. Do you think an engineer wants to drive to Poland every day? ;)

  • @jaybyrdcybertruck1082
    @jaybyrdcybertruck1082 4 ปีที่แล้ว

    They have to build their own factory. They are designing the factories to create the cars, the factory has to be custom to provide efficiency they need in building the models they want.
    Retrofitting someone elses design to fit your own is stupid and costly and Tesla would run into logistics, and manufacturing issues using someone elses.

  • @gunjanshrivastava5821
    @gunjanshrivastava5821 4 ปีที่แล้ว +5

    Tesla: Factories everywhere
    Other gas gaslers: we're going bankrupt

    • @carholic-sz3qv
      @carholic-sz3qv 4 ปีที่แล้ว

      I totally disagree with you moron gas powered vehicles are still here to stay for a very long time until we are able to make cleaner, better batteries and electricity and finally the transition is going to take a very long time. The main problem is going to be ships and aircrafts that even pollute more than cars so stop talking shit, and don't forget that the roads materials, paint and many other products are made out of crude oil

  • @collin7343
    @collin7343 4 ปีที่แล้ว

    You are kinda wrong the Gigafactory isnt in Berlin its going to be in Brandenburg.

  • @brinkshows2720
    @brinkshows2720 4 ปีที่แล้ว

    I find it very exciting Tesla comming to Europe. It will cut the cost quite allot when import tarrifs etc drop.

  • @rlicon1970
    @rlicon1970 4 ปีที่แล้ว

    Who is smarter tesla or business insider? Time will tell.

  • @MrMarkusmulder
    @MrMarkusmulder 4 ปีที่แล้ว +1

    Good set-of.... BMW MERCEDES VW

  • @IvanIvanov-yd2wv
    @IvanIvanov-yd2wv 4 ปีที่แล้ว

    Tesla’s sells are skyrocketing in EU. What is the Insider talking about? The old plants are not built for such a level of vertical integration and autonomy. He is building the mega machine that builds the machine..
    Soon enough tesla will start mining in producing it on batteries.

  • @Poxenium
    @Poxenium 4 ปีที่แล้ว +6

    Taking over existing factories is a nightmare. What works for an inefficient ICE car factory, will not work for EVs, especially for Tesla. Retooling and rebuilding the interior costs more than a new building, designed for Tesla assembly lines from the start.

    • @cucco1
      @cucco1 4 ปีที่แล้ว +1

      It would indeed make no sense for Tesla to take over existing factories. A lot of this backlash is probably because companies here are getting pretty scared of them. I see a lot of fake news and fearmongering about Tesla here and it's laughable to see their incompetence. They had their chance and they did nothing

    • @carholic-sz3qv
      @carholic-sz3qv 4 ปีที่แล้ว

      Can you please explain how the fuck ICE car manufacturing plants are not efficient ? That's a very dumb argument wtf!!!

    • @Poxenium
      @Poxenium 4 ปีที่แล้ว

      @@carholic-sz3qv In most places ICE car makers are forced to keep a certain number of workers, thanks to unions, so the whole thing was built around that fact, to give people jobs first, be efficient second.

    • @carholic-sz3qv
      @carholic-sz3qv 4 ปีที่แล้ว

      @@Poxenium ist already very efficient and has been that for decades and companies like Bosch, AISIN, ZF, BREMBO are very well experienced suppliers with many different car parts and tousands other suppliers because of the size and the manufacturing plant locations, it's very efficient, tesla doesn't make every parts of their cars and many if them are made in Germany for example.

  • @MrR233
    @MrR233 4 ปีที่แล้ว +2

    Best engineers of Germany live in Munich and Stuttgart. Only hippies and hipsters live in Berlin.

  • @MyMd1111
    @MyMd1111 4 ปีที่แล้ว

    Business Insider😂😂😂😂😂

  • @reinplat
    @reinplat 4 ปีที่แล้ว

    If Berlin is so rich in tech and engineering talent, why is it taking them 15+ years to build a mid-sized international airport? The Chinese complete airports twice this size in a fifth of the time.

  • @ivanhartley4378
    @ivanhartley4378 4 ปีที่แล้ว

    Cannot see myself every buying a Tesla made in Germany, only due to my car history, maybe it’s bad luck, but every car I have owned made in Germany has been a lemon ☹️

  • @nenadmylink
    @nenadmylink 3 ปีที่แล้ว

    Tesla should come to Serbia :)

  • @dingdong3857
    @dingdong3857 4 ปีที่แล้ว

    In my opinion Hungary is the best place in Europe for multinational factory investment.Hungary is in the center of Europe with modern infrastructure ,low taxes and guvernment economical support.Soon Hungary will be the door of Asia in Europe.That means Europe and Asia in one place= Massive oportunities.