Question

what are some specific Market risk (equity, commodities, legal, interest risks) and how it has impacted tesla. what is one of their most successful strategy and major failed strategy?

Answer 1

answer-

what are some specific Market risk (equity, commodities, legal, interest risks) and how it has impacted tesla. what is one of their most successful strategy and major failed strategy?

EQUITY RISK-

Equity price risk refers to the risk arising from the volatility in the stock prices.the following points can impact the tesla under euity risk-

• decrease in demand of cars can cause fluctuation in the stock prices of the tesla.
• high prices of fuel can cause fluctuation in the stock prices of the tesla.

COMMODITY RISK-

Commodity Price Risk refers to the risk of unexpected changes in a commodity price, such as the price of oil.tesla has been very affected by this market risk because thier products are based in fuel & as well know world is facing crisis of limited fuel sources cause of that prices of fuels are increasing & need of fuel eeficient vehicles are increasing.

LEGAL RISK-

Legal risks are related to government laws & regulations. in the context of tesla, company should comply with the environmental laws in which company should manufacture cars which has lower emission of CO2 & nitrogen di oxide.with the breaking of such laws company would be liable for legal as well as social responsibilities.

INTEREST RISK-

Interest rate risk is the market risk that the value of a security will fall as a result of increase in interest rates.tesla is a automobile manufacturing company which rquired huge investment so company would get funds from banks & other financial organizations which needed security & thier interest are higher which decreases the value of security.

the one most successful stragey was to go digital & social media to increase the demand of tesla cars cause of that customers can shop,check prices, specifications etc.these virtual showrooms help the company to manage the equity risk.

the failure strategy was to build the car of model 3s which are built by hands which increases the cost of production & excuses was to do that the production line was not ready so they adopt hand build cars.

*above answer is written in my own language of hope this answer would help you.good luck & rate.