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9 March, 19:33

Tesla is building a battery factory in nevada with an enormous capacity far exceeding current and, some say, also exceeding future battery demand. explain why you think elon musk is pursuing this factory and how it plays in with tesla's overall strategy.

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  1. 9 March, 19:55
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    Musk is pursuing this overall strategy because he thinks the market for the batteries will be higher than forecasted. Tesla not only plans to power their cars with these batteries, but also consumers’ homes. Tesla also builds and installs solar panels. This will create a product ecosystem much like Apple did with the iPod, Mac, iPhone. iPad, Apple Watch and Apple TV. The idea is that by buying one of the company’s products the consumer will be more likely to buy the other ‘parts’. In addition to this sales plan, by building a large facility he will employ the economies of scale and thus have the cheapest batteries available. By doing so he will secure market capitalization (the total amount of batteries sold by all companies).
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