Homework $4$

Please carefully read the article titled "Tesla Applies to Expand Shanghai Plant, Add Pouch Battery Cell Output" by Reuters, published on May $16,2023,$ at $4$:$19$ AM EDT.

The article discusses Tesla's expansion at its Shanghai plant and raises concerns regarding wastewater treatment within the facility. Additionally, environmental organizations in Germany have voiced opposition to the expansion of Tesla's Gigafactory Berlin$-$Brandenburg, addressing concerns related to water usage, forest preservation, and the broader implications of electric vehicle $($EV$)$ supply chains. ${?}^1$

Based on externalities and market failure that you have studied in chapter $18,$ please answer the following questions.

Thinking critically $(20$ points$)$:

What social, environmental, and$/$or ethical considerations are associated with the establishment of Tesla's plant in Shanghai, China?

What social factors should be considered to comprehend Tesla's overseas expansion, including employment prospects, cultural influence, urban growth, and$/$or environmental implications?

How might the establishment of Tesla's new plants impact local cultures and lifestyles in China?

What recommendations or strategies would you offer to address the potential issues identified for Tesla?

How can the proposed solutions be effectively implemented by Tesla?