thquakes, which could pose some risk. (W)РРd. N/AРРe. Tesla’s costs are higher than its petitors in the automotive industry because the pany hasn’t reached economies of scale. Service costs are high due to their lack of dealerships. (W)РРi. Tesla needs to increase production/sales of the Roadster and new Model S cars to reach economies of scale and lower costs. Adding service facilities will increase costs in the beginning but save costs later on and into the future.РРii. The high costs resulted in a net loss in every year it has been in business.РРiii. Yes the pany is trying to increase growth and earnings through new joint ventures and new product offerings (Model S car).РРiv. The operations don’t yet provide the pany with a petitive advantage except for their proprietary technologies.
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