3. Tesla Motors is a relatively young firm in a mature industry. The auto industry is capital/asset intensive, utilizing production equipment that is tangible and is useful to other firms. Unlike other car firms, Tesla is growing at a rapid pace such that the value of this growth is not reflected in Tesla's balance sheet. Also, Tesla has yet to generate an operating profit (positive EBIT). However, like all car companies, Tesla's sales are subject to variation due to fluctuations in the business cycle where consumers are more likely to purchase a car when the economy is strong and less likely during a weak economy. Relative to Ford, GM, and its other competitors, should Tesla finance its operations with relatively more debt and less equity) or more equity and less debt (justify your answer)