needs to be in your own words! please do not copy anyone! Thank you!

1) Tesla, an American automobile manufacturer based in California, has hired you as a business strategy consultant. Tesla is the leader in electric luxury cars across the world. Over the last five years, their sales have increased due to consumer and political concerns over the environmental impact from combustion- based automobiles. Increased demand worldwide has resulted in increased competition from established companies (Ford; GM; Mercedes; Toyota; etc.), as well as smaller start-ups. Because of the Covid-19 pandemic, lags in the supply chain, and a doubling of fuel prices, recent costs have skyrocketed. Consider the following question:

B) Costs for Tesla manufacturing in the US have increased by 50% over in the last 18 months. Tesla employs a labor force of 5,000 people across 3 factories (California; New York; Texas). Tesla utilizes both general and custom-made parts to manufacture its cars. General parts have increased in price by 30% and custom parts have increased 500% in the last year alone. Another costly input is computer electronics which accounts for 25% per machine. The cost distribution is as follows:

Total Cost: $50,000

Labor Cost: $25,000 Electronics: $12,500

Parts / Other Inputs: $12,500

Discuss your top 3 strategy options for combating the rising cost of their US manufacturing.