Can Tesla Achieve Economies of Scale and Keep its Promise?

Can Tesla Achieve Economies of Scale and Keep its Promise?

Expert Solution

Yes,I personally believe that Tesla will be achieving with the economy of the scale because it can be reflected into its recent quarterly earnings that the companies trying to make a profit and it is expected to report profits in its incoming quarter so the company is trying to generate a higher rate of return on its overall debt capital which will be helpful in determining the growth rate of the company in the long run.

so I am highly hopeful that the company will be achieving the economies of the scale because it will be cutting onto its cost and it will also be maximizing on to its profits due to increase in its sales because of sophistication of its output as these electronic car makers are not substituted by other company so this company will always be having a premium in the near future because this is into production of such products which are han highly demanded and not substitutable so it may be e asserted that cost of these goods will be going down as the company will be going to get mature so there would be a learning curve which would be applicable in the overall production of the company and I am highly hopeful that the company will be achieving the economies of the scale and it will meet its projected estimation in the coming years.

jeff jeffy answered 1 year ago

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