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Tesla, Inc. is considering expanding its manufacturing capacity by building a new Gigafactory. The construction of the Gigafactory is expected to cost $2.5 billion and

Tesla, Inc. is considering expanding its manufacturing capacity by building a new Gigafactory. The construction of the Gigafactory is expected to cost $2.5 billion and will take three years to complete. Once operational, Tesla estimates annual revenues of $1 billion and operating expenses of $800 million for the next ten years. Additionally, there's a 15% probability of construction delays, which would result in additional costs of $500 million. Calculate the expected net present value (NPV) of the Gigafactory project for Tesla, Inc., assuming a discount rate of 12%.

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