Question: A) Tesla opted for a major capacity increase - following an expansionist strategy. (AIMING FOR 500,000 CARS/YEAR CAPACITY). Do you think it was a good

A) Tesla opted for a major capacity increase - following an expansionist strategy. (AIMING FOR 500,000 CARS/YEAR CAPACITY).

Do you think it was a good idea? Why or Why not? Should they have phased out expansion? Maybe added capacity in chunks of 100,000 cars per year? What would have you done if you the decision-maker?

B) When considering capacity decisions is it just the number of cars they should be worried about? What about charging stations?Service requirements? Are these decision part of the capacity expansion of the factory?

Anything that you would have done differently?

C) Tesla is building another Giga Factory in China. Given the company's financial situation, was it a good idea to embark on another major project? Will they end up having excess capacity? Discuss the pros and cons and state your conclusion.

Tesla in the News:

https://asia.nikkei.com/Business/Companies/Tesla-and-Panasonic-freeze-spending-on-4.5bn-Gigafactory

https://electrek.co/2019/07/09/tesla-mysterious-production-capacity-increase/

https://electrek.co/2019/09/16/tesla-preparing-expansion-gigafactory-3/

https://cleantechnica.com/2019/03/21/tesla-service-struggles-to-keep-up-with-sales-volume/

https://www.latimes.com/business/autos/story/2019-08-16/in-germany-tesla-buyers-complain-about-service-and-quality

Video Link:

This isElonMusk's key to Tesla's future

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