Link to underlying research: https://research.gavekal.com/article/unraveling-chinas-produ...

I actually wonder how much labor costs impacts profitability. I need to look at the financial reports. But if it (worker salary) is a small part, maybe improving the 1:2 production ratio could be more useful? Is there any reason Chinese workers are producing double the number of cars per worker? Does the Chinese super factories have better automation?

I suppose it would be way less if you only compared to U.S. prisons labor, but a race to the bottom is not to be admired.

There might be differences between the Shanghai and California factories that muddy the comparison:

- California factory was made in previous Toyota/GM factory, not sure how much of it is completely optimized compared to Shanghai factory

- Shanghai factory is built much more recently (2010 vs 2019)

- California factory also makes low-volume S and X vehicles in addition to 3 and Y

- California (especially the area around the Tesla factory) is not representative of most US auto manufacturing, most companies including Tesla have factories in other US states