• Tesla is considering launching a new solar energy product with the following financial projections:
  • Development Costs: $1 billion
  • Production Costs per Unit: $10,000
  • Selling Price per Unit: $20,000
  • Estimated Annual Sales: 100,000 units
  • Fixed Costs: $500 million annually

• Requirements:
  1. Calculate the total annual revenue and production cost for the new solar energy product.
  2. Prepare a break-even analysis for the new product.
  3. Analyze the profit margin per unit and overall for the new product.
  4. Discuss the strategic importance of the new solar product for Tesla’s energy division.
  5. Evaluate the potential market risks and regulatory challenges for the new product.