[kawhah]

The experience of Tesla clearly shows that this is a completely inaccurate picture of what motivates R&D. For decades big automakers took steady profits but declined to spend much on R&D, preferring to make incremental refinements to a conventional product. When they were challenged by an efficient upstart with an innovative product, the threat to their steady profits suddenly made them decide that they were prepared to spend on R&D.

[pembrook]

Except, what also allowed Tesla to grow was lack of unions and Chinese manufacturing.

Even in the US, Tesla workers make an average of $45/hr while Detroit automakers have to pay $67/hr due to the UAW.

I agree, incumbents are typically lazy and stifle innovation, however that’s not the full picture.

OP is correct. Unions are also interested in profit maximizing for their members. So a foreign competitor or upstart without union concerns is at an advantage. Even if you like unions and think they are generally good, this is an undeniable fact given the global market for consumer products.