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Tesla is assessing the costs associated with expanding its electric vehicle (EV) production capacity. The expansion project includes fixed construction costs of $2 billion and
Tesla is assessing the costs associated with expanding its electric vehicle (EV) production capacity. The expansion project includes fixed construction costs of $2 billion and variable production costs of $30,000 per vehicle. Tesla plans to produce 100,000 EVs annually, generating $5 billion in revenue.
Requirements:
- Structure the construction and production costs in a paragraph format.
- Calculate the total investment and variable costs for manufacturing the EVs.
- Determine the gross profit margin per vehicle and total gross profit.
- Analyze the market demand and competitive landscape for electric vehicles.
- Discuss the strategic implications of expanding Tesla's manufacturing capacity.
- Evaluate the financial impact of the EV production expansion on Tesla's cash flow.
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