Tesla, Inc. is an electric vehicle and clean energy company. Tesla produces vehicles and uses a standard costing system. The standard cost to produce one vehicle is as follows:

• Direct materials: $30,000 per vehicle
• Direct labor: $10,000 per vehicle
• Variable overhead: $5,000 per vehicle
• Fixed overhead: $2 million per month

During the month of March, Tesla produced 1,000 vehicles and incurred the following actual costs:

• Direct materials: $28 million
• Direct labor: $10.5 million
• Variable overhead: $5.2 million
• Fixed overhead: $2.1 million

Requirements:

• Calculate the direct material, direct labor, variable overhead, and fixed overhead variances for Tesla, Inc.
• Analyze the variances and provide possible explanations for the differences between standard and actual costs for Tesla, Inc.

Discuss the implications of the variances on the company's performance and management decisions for Tesla, Inc.