Baglino: US-China factory labor differential is under 10% of COGS
Drew Baglino · The Founders Who Left Tesla to Rebuild America | a16z · May 13, 2026 · at 10:34
Drew Baglino, former Tesla senior executive and founder of Heron Power, analyzes manufacturing cost structures when comparing modern US and Chinese automated factories.
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“Yeah, I mean, these, today's factories are really automated. If you're building a new factory today, you know, in China or the U.S., the labor differential is less than 10% of cost of goods sold. It might even be less than five percent.”
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