[zamfi]

> "and basically removed Customs tax" > This is not how custom taxes work. The EU is one of the biggest free trade zone in the world. If Mercosul joins, it is the biggest.

Wait, isn't this is exactly how custom taxes work? Say the EU charges a 10% tax on all imported passenger cars (it does, and 25% on pickups and other trucks). Now, if Tesla sells cars to the EU that were made in the USA, wouldn't it trigger that import tax?

Now, say Tesla builds a factory inside the EU and makes cars there (as it plans to do). When sold in the EU, those cars wouldn't be charged an import tax because they're not being imported.

Right? What am I missing?

[propercoil]

You’re right on both. Just as an added plus Tesla will have better tariffs to other countries while taking advantage of each of its hosting jurisdiction’s bilateral deals, so the impact is larger.