I hope Tesla soon builds GigaFactory 4 in Europe - seriously. Damn it build it already. We need to deliver as many Teslas on Europe's road as we can before VW will mass producre electric vehicles.
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Then we still have at least 10 years...
Don TLR
Active Member
EVNow
Well-Known Member
Fact Checking
Well-Known Member
But in what way is that mathematically connected to reserve currency status? It isn't.
You can have reserve currency status but a current account surplus. The two are not directly related - and to suggest that there's a strict mathematical, accounting identity connection is a fundamental misunderstanding of modern monetary and trade systems.
I believe the confusion comes from this part:
Why would that be the case? For foreigners to trade in dollars they simply have to hold some dollar reserves to facilitate trade, and many of them prefer to hold them in NY bank accounts.
No way is a trade deficit required for that to happen: dollars get created by loans, there's no fixed supply of them.
I maintain: "the claim that reserve currency status forces persistent trade deficits is not just counterintuitive but also wrong."
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Pllease please please don’t build it in France. That country has the worst work ethic and most antiquated labour rules in western Europe. My own company in The Netherlands is confronted with their laziness and incompetence on a daily basis. I do business in the whole of Europe and the French are by far the worst. Eastern Europe would be a much better choice. Poland is my favorite.
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Todd Burch
14-Year Member
I imagine Tesla has learned a lot observing the Amazon HQ search process. Hard to understand how it would be more attractive to locate in Rust Belt/Ontario (even with building almost free) vs. a booming, growth area like Texas — assuming geography and skilled/tech labor availability are important. What is improved access to Michigan really worth in the long run?
EVNow
Well-Known Member
Well, MI has more skilled auto labor than TX. Moreover, how will Cruz help Tesla in anyway ? I'd prefer TN - lots of not just auto labor, even EV auto labor available. BTW, we should not discount the possibility that Tesla could open shop in Mexico.
ZachF
Active Member
You really don't know what you're talking about here.
Trade always equals zero. This is very, very, very basic. It has to.
You can theoretically run a current account surplus and be the world's reserve currency if the private side of the capital account is enough to counteract the the need for new dollars. This is what happened in the US in the 1950s, but those were special circumstances... The US was ~40% of the world economy, and nearly the entire rest of the world lay in ruin, so there was a giant need for American capital, but those circumstances ended in the 1960s, then the US started "paying for it" by drawing down it's gigantic prewar forex/gold reserves until the system broke in the 70s.
You need a certain amount of dollars to fund global liquidity, and unless the world economy is shrinking and there is no inflation, this number always grows. In order to supply these dollars you increase your capital account, which requires mathematically a decrease in the current account.
It was easy for the US to do so when we were 40% of the world economy, and ~20% was under communist rule and therefor not really in the global trade scheme per se, and most of the world was ruined and in need of more capital than dollars. That's not true anymore. The US is now 25% of the world economy and pretty much the entire world is in the trading scheme. This means the need for dollar liquidity as a percentage of the size of the US economy is always larger than any private capital flows could reconcile. The US being the reserve currency in this situation guarantees a current account deficit.
You arguments here make no sense because you aren't properly tracking your identities. Those foreigner that hold dollars in NY bank accounts need to trade their own currencies to get them, therefore affecting the current/capital account mechanism.
There is no fix supply of dollars, but that does not change accounting identities wrt trade.
EVNow
Well-Known Member
If so, pretty sad one. Now Tesla is above NASDAQ. The big drop off in NASDAQ starting at 10:03 had no impact on TSLA.
BTW, can we take the current deficit talk elsewhere during market hours, pls ? Thx.
Who's Boat is that Boat? Are we really in that ZEV boat?
I'm trying to understand impact of ZEV credits threat from Trump. Good info here What is ZEV? (mostly Cal specific, but also explains other states).
It says that Tesla sold many of it's ZEV credits, so then minimal impact on Tesla to Trumps threat because we've been cashing in all along? Hence ahead of the game? Meanwhile others may be stockpiling. So anyone know if GM is in that boat? (Sitting on Credits that become worthless?)
I'm trying to understand impact of ZEV credits threat from Trump. Good info here What is ZEV? (mostly Cal specific, but also explains other states).
It says that Tesla sold many of it's ZEV credits, so then minimal impact on Tesla to Trumps threat because we've been cashing in all along? Hence ahead of the game? Meanwhile others may be stockpiling. So anyone know if GM is in that boat? (Sitting on Credits that become worthless?)
Krugerrand
Meow
Except that auto labor is used to the bloat and laziness of unions, and the old way of doing things. It is more difficult to teach old dogs new tricks.
Don TLR
Active Member
The question is who has the workforce available to fill the location, it would seem like the logical place would be a town that just lost a big employer that was used to building cars. I'm not saying it can't happen somewhere else but reemploying those people who are ready to work again makes sense..
Good to see Tesla Green
ZachF
Active Member
SW2Fiddler
We Are Cognitive Dissidents
Fixed. CVS builds stores across the street from Walgreens whenever they can.
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Todd Burch
14-Year Member
As long as it's still heavily-shorted, I think there will be big players making big trades to push the price down in an attempt to scare weak longs. Not sure why it mostly seems to happen in the first hour or so of trading, but it seems perhaps they're trying to set the tone of the day. It's amateur hour for a reason I guess.
Edit: By making them big trades, you get that long steep drop, which is scarier. Weak longs see that, assume some big bad news is about to break, and panic sell, making it worse.
Moral of the story: Exercise testicularity* when possible.
* Trademarked
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Yup. There is a lot of pie left. No matter how good Tesla is they can't supply cars to everyone due to styling, market segmentation etc.
Buckminster
Well-Known Member
Did Michel Barnier approve this? I thought the EU thought as one? I spy a gap that Teresa May can exploit.
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