Labor cost is a part of course… But the bigger thing is that the entire manufacturing process from near-raw materials, through individual component manufacturing, and final product assembly are all located within just a few miles of each other. Things aren’t being shipped across the country multiple times through the process. When manufacturing transportation cost is essentially zero, there is a lot of inherent cost and time savings.
Labor cost is a part of course… But the bigger thing is that the entire manufacturing process from near-raw materials, through individual component manufacturing, and final product assembly are all located within just a few miles of each other. Things aren’t being shipped across the country multiple times through the process. When manufacturing transportation cost is essentially zero, there is a lot of inherent cost and time savings.
I think the bigger things are the nearly slave labor and the temporary government subsidies and the general manufacturing capability and the jobs.
That said, I sure would like cheap, ubiquitous electric vehicles.