The Gamble on Teslas Gigafactory in The Nevada Desert - Article Example

Nevada was able to win the tender by providing 980 acres of rocky, barren land that donated by the private landowner (O’Connell 1). From estimations, Tesla sold 18,750 of its Model S roadsters in 2014 at a sticker of approximately $70,000.It also states that batteries will help bring the cost of the future car that model, 3 down by $35,000. The partnership between Tesla and Nevada intended to hire more than 300 interns and students believing that the job requires working in the facility and then returning to open one Reno.

The article also indicates how much secretive Tesla Company is secretive by carefully guarding their secrets. (Adapted from http://www.sparknotes.com/economics/micro/supplydemand/equilibrium/section1.rhtml)          The above graph shows the market demand for Electric cars of the Tesla Company in the market. The demands of Tesla Cars are in demand because of the economic advantages. For instance, the vehicle does not use which is economical to the customers.

The Tesla Company makes an agreement with the University of Nevada at $1million and $37.5 million to improve the education. On the other hand, this will cut their cost on the supply of labor in the factory as the company gets the demanded labor from the intern from Nevada University (O’Connell 1). Again the supply of the battery from the factory is also anticipated to reduce the cost of production of Telsa car Model 3 saving reducing the company’s expenditure.