Premium Essay

Gigla Factory

In: Business and Management

Submitted By arinb91202
Words 469
Pages 2
Executive Summary

The paper regards the construction of a gigafactory by Tesla Motors. The gigafactory will be at a cost of $5 billion and will be operational in 2020. Importantly, the gigafactory will reduce the costs of the electric cars produced by the firm by 30%. This will increase the marketability of the vehicle to a broader market. The paper will seek to undertake an analysis of the demand and supply of electric cars as well as the price elasticity of electric cars. Hence, the paper will conclude with an evaluation of the viability of the construction of the plant.

Table of Contents
Executive Summary 2
Construction Of Gigafactory For Tesla 4
Purpose 4
Methodology 5
Results 5
Conclusion 5
References 5

Construction Of Gigafactory For Tesla

Tesla Motors has selected Storey County, Nevada, as the location of the construction of its gigafactory. The gigafactory us set to be operational by 2020 and will be highly significant in the reduction of the production costs of Tesla by 30%. Given the current pricing of the vehicles produced by the firm such as the Model S, which priced at $69,900 would drop to $48,930. This is a significant drop and will be essential towards the launch of future models by Tesla such as the Tesla Model 3. The Tesla Model 3 will be priced at $35,000 to $40,000. The model will be launched in 2017 and thus, on the full launch of the gigafactory the model will cost $24,500 to $28,000. The lower pricing of Tesla models is quite integral to the increasing penetration of electric cars produced by the firm. Currently, electric cars face challenges in penetrating the car market. This is due to the high cost of the vehicles as well as the limited range of travel. Despite

Similar Documents

Premium Essay

Manufacturing Essay

...Macintosh computer which Steve Jobs described as “a machine that is made in America”. In 2004, when the company was not nearly as financially profitable as they are today, they decided their best option was to start manufacturing their products in other countries. The company, who is now a leader in foreign manufacturing, was lagging behind many American companies in terms of manufacturing abroad at that point in time. The majority of their foreign manufacturing takes place in Asia, specifically in China. In the New York Time’s article, “How the U.S lost out on iPhone Work,” Charles Duhigg described Apple’s move to foreign manufacturing from the words of a former Apple executive, “For Mr. Cook, the focus on Asia “came down to two things,”… Factories in Asia “can scale up and down faster” and “Asian supply chains have...

Words: 1270 - Pages: 6

Premium Essay

Making It in America

...takes time to interview different employees at Standard Motor Products to determine how it is treating them and how factories are changing in time. Adam is receiving a tour of the plant by manager Tony Scalzitti where he sees many factory workers in blue lab coats, hair nets, and protective eyewear. This is where Adam first runs into Madelyn Parlier. Madelyn Parlier was a 22-year-old woman working in the assembly line at the factory. Her occupation was seemed to be an unskilled job and didn’t require much education or experience. It was all about quickness and effectiveness for Madelyn and that was something she was great at. Madelyn grew up in Greenville, SC and was attending high school and planning on going to college when she got pregnant her senior year. Because of this she couldn’t go to college so like most people there she got a job working at the local Standard factory. Madelyn’s job was to run the laser-wielding machine. All she did was place the parts in the machine and press a button for them to be wielded and if correct a green light appears and she passes the part to the next line in process. With this being such an unskilled job there is always that chance of Madelyn being replaced by a robotic arm or machinery that can do this job for her and in turn create less wages for the company to pay for. Over the last 30 years employment of people in factories have gone down 1/3 because of machinery and computers taking their places in line. They are more productive and less...

Words: 657 - Pages: 3

Free Essay

Managing Across Cultures

...PEOPLE OF THE PHILIPPINES, appellee, vs. CARMELITA ALVAREZ, appellant. D E C I S I O N PANGANIBAN, J.: In illegal recruitment, mere failure of the complainant to present written receipts for money paid for acts constituting recruitment activities is not fatal to the prosecution, provided the payment can be proved by clear and convincing testimonies of credible witnesses. The Case Before us is an appeal from the January 28, 2000 Decision[1] of the Regional Trial Court (RTC) of Quezon City, Branch 93, in Criminal Case No. Q-94-58179. The assailed Decision disposed as follows: “WHEREFORE, the foregoing premises, the court finds the accused CARMELITA ALVAREZ guilty of Illegal Recruitment committed in large scale constituting economic sabotage. Accordingly, the court sentences her to serve [the] penalty of life imprisonment and to pay a fine [of] P100,000.00. She is further ordered to indemnify the following complaining witnesses in the amounts indicated opposite their names: Arnel Damian P 16,500.00 Joel Serna P 18,575 plus US$50.00 Antonio Damian P 6,975.00 plus US$50.00 Roberto Alejandro P 47,320.00”[2] The July 18, 1994 Information[3] was filed by State Prosecutor Zenaida M. Lim. It charged Carmelita Alvarez with “illegal recruitment committed in large scale,” under Article 13(b) in relation to Articles 38(a), 34 and 39 of the Labor Code of the Philippines, as follows: “That sometime between the period from November, 1993 to March, 1994, in Quezon City, Metro...

Words: 4806 - Pages: 20

Free Essay

Business Ethics

...Labor Practices Factory workers endure abuse on the job lacking a voice or ablility to do anything about it. Since Nike contracts out for their factory managers, it has been hard for Nike to regulate what goes on when they are not on their tour or walk through. “A Korean supervisor in a Vietnam factory was found guilty of beating 15 Vietnamese about the head with a shoe “upper”, and another Korean supervisor was charged with sexual molestation.” (Saporito 3) In this instance it was not an U.S. supervisor, nor was it a military officer but someone of a different nationality. The hard part is that there are no independent unions and meaningful corporate codes of conduct to discipline management. So workers must turn to the courts for help which is a long fought battle that no one wants to attempt. In one case that made it to, a Vietnamese court recently found a Korean supervisor guilty of beating workers and extradition may be sought for the accused sexual molester who fled. In Indonesia 24 discharged Nike workers are challenging the legality of their dismissal before the country’s Supreme Court (Saporito 3). These are major breakthroughs in the court systems to have someone tried and convicted in these distant countries whose courts are often corrupted. Factory conditions are consistently getting press here in the U.S., as many are angry with Nike for not providing for their overseas employees. The following account is of the conditions in a Chiniese factory: Twelve hour...

Words: 2183 - Pages: 9

Free Essay

A Simple Life

...bad, well I wish they were around to see what all we had compared to what they have today. The Morse code for example we didn’t have that but they do and they can send messages to people all over the country. They have iceboxes which also mean they have fresh food for weeks. They have running water in the house so no more running to the well to get fresh water. Bathrooms in the house, no more running outside late at night to use the bathroom. The time is changing so much. An industrial revolution is happening right before my eyes. Things are being produced more rapidly and efficiently. Factories are hiring large amounts of workers which means a lot of new houses are being built. There are apartments for people who don’t need houses and large housing facilities for people with large families. Our lives are changing so much that I hardly get to see my wife, I come in from the factory, eat and go to bed to get up early in the morning to head off to work...

Words: 302 - Pages: 2

Premium Essay

Delivery Delay

...from China frequently, you may know delay in delivery happens a lot here. There are many reasons. But I can list some basic examples here for your reference. 1) The manufactory has many production missions. They need to arrange the production according to their schedule. 2) The factory couldn't manage the production agenda properly. Like they are short of material and need to order from their suppliers 3) The order is not easy to produce due to its high technology and strict requirements then many problems occur in the production. 4) The force majeure or the external factor, like typhoon, on fire, shortage of power. 5) Your order for the supplier is not profitable, they let other VIP or profitable orders produce first. So if the delivery time is very important to you, you need to avoid it when you would like to place the order. How to avoid the delay in delivery? Just like what I suggested to my buyer, I wrote follows: "As I talked to you much earlier, you should sign a contract and write all the terms including the delay in delivery and penalty with your supplier, especially when the 1st order had problem. This will make this supplier to sign the contract with their worked factory and each party will be under the pressures to make things right and properly." Then he asked me...

Words: 606 - Pages: 3

Premium Essay

Intro to Pom

...Procurement Engineering Design Industrial Engineering Process Engineering Entry-Level Jobs in POM • Purchasing planner/buyer • Production (or operations) supervisor • Production (or operations) scheduler/controller • Production (or operations) analyst • Inventory analyst • Quality specialist 5 Historical Milestones in POM • • • • • • The Industrial Revolution Post-Civil War Period Scientific Management Human Relations and Behaviorism Operations Research The Service Revolution 6 The Industrial Revolution • The industrial revolution developed in England in the 1700s. • The steam engine, invented by James Watt in 1764, largely replaced human and water power for factories. • Adam Smith’s The Wealth of Nations in 1776 touted the economic benefits of the specialization of labor. • Thus the late-1700s factories had not only machine power but also ways of planning 7 and...

Words: 1065 - Pages: 5

Free Essay

The Factory on the Hill

...into a situation where the only place they afford to live is next to factories. And they are paying the cost in their health. I’ve heard many stories about pollution issues in Richmond, and I always wonder why these residents decided to live there at the first place and why they still live there. I learned from the article the reason was much more historical than that I thought. People started to move to Richmond before WWII. There was racism and people in color especially African Americans could not live in certain neighborhoods. Simply they did not have a choice. Also from this article I saw that because Richmond is such a poor neighborhood, it seems like the society even don’t care about the fact so many residents are suffering from pollutions. After some toxic air pollution incident, no one came to check up on their health. It looks to me that the society don’t value the residents’ life or health. In addition, this article reminds me of the news report that I’ve read a while ago. It said that it’s very expensive for factories to reduce pollutions so large corporations chose to pay fines to the government instead of solving these issues. I understand businesses are always looking for ways to reduce expenses, but these unethical behaviors of corporations need to be stopped. And I didn’t see the companies in Richmond are reaching out to help these people who are suffering from toxic pollution from their factories. 2. How does it relate to one or more environmental health...

Words: 503 - Pages: 3

Premium Essay

Development

...RECENT DEVELOPMENTS In 2010, MAGGI® launched its “Happiness is homemade” communication campaign which was developed from the brand’s vision of uniting Malaysian families through cooking and sharing moments together around the dining table. “Happiness is homemade” was applied to every strategic move and executed in every piece of communication. MARKET Malaysia is a melting pot of cultures united through their love for food. Through homecooked food, families come together and share simple joys of life. In today’s fast-paced lifestyle, the struggle for time has made such occasions rare, slowly dissipating the beauty of homemade meals and togetherness. MAGGI®’s mission is to bring back the charm and wonders of cooking and sharing by offering a wide range of products and solutions to support mothers in meeting various lifestyle needs. MAGGI® helps mothers to prepare tasty and balanced meals for their families every day, the key to continuing the tradition of great family values. Positioned as the leading culinary expert in Malaysia, MAGGI® has entered the homes and hearts of every Malaysian. MAGGI® is dedicated towards supporting mothers and their role in raising children who are the future of Malaysia. All MAGGI® products are locally produced in Malaysia and are halal. yellow background, are recognised throughout the country as a stamp of quality and mark of assurance. MAGGI®’s reputation is also strongly endorsed by chefs, its range of sauces and liquid stocks are widely...

Words: 613 - Pages: 3

Premium Essay

Aaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa Aaaaaaaaaaa

...Executive summary In this case, there are two major problems that I can analyzed. Firstly, Kiki and Houida which are two of major loyal customers of Couture Fashions Bhd (HCF)’s were writing to Jeffrey to inform him that they may looking to China to “contract manufacture” for them as the prices there were very competitive. Second, the previous adverse perception of “Made in China” labels had slowly changed as China now manufactured clothes that are higher quality at substantially lower operating costs. There were some recommendation that are going to implemented which are proposal to expand to China, proposal to close down HCF’s factories in Malaysia and Thailand or manufacturing its own label for Malaysian and Asean market. Statement of Problems HCF may lose their big major loyal customers which is Kiki and Houida as they may looking to China to “contract manufacture” for them as the prices there is cheaper. Apart from that, nowadays China was produce high quality product with cheaper price so then makes the perception of people about the “made in China” goods changed to a good view. This is because of the labour cost in China is cheaper rather than Malaysia. HCF now is very confusing to make decision but based on the problems they have to make accurate decision. According to these problems they have to deeply make consideration of their short term and long terms decision. As far as I am concerned, the short term problem is HCF may lose their big major loyal customers...

Words: 1003 - Pages: 5

Premium Essay

Industrial Revoluion

...grounds for most of the technology we know of today was created in this time period. The reason that steam power was pushed into society then was because of the textile industry. The sheep provided the wool, but it had to be transported to water powered mills built near streams and rivers; this caused an issue with textile cost because transportation was so expensive1. “In 1698, British inventor Thomas Savery patented a steam-powered pump, which he described as an ‘engine to raise water by fire.’1 “ The perfecting of the steam engine is what many believe marks the beginning of the industrial revolution. Steam meant that factories could be built anywhere and were not bound to rivers for water power, or open fields for wind operation. Transportation was a very large industry that was taken over my steam power. Steam engines were compact enough to move out of factory work by the early 1800’s1. The first steam powered locomotive was on rails in Britain in 1804, this was the first time things were transported over land purely by non-human or animal means1. “The United States was the pioneer in shipping, putting a passenger steamship on the water in 1807.1” That thirty-two hour one hundred and fifty mile journey was the reason for the boom in the rail travel industry. Communication was a huge part of the industrial revolution, it allowed for people to transfer ideas. The Envelopes were made of cloth, animal skins or vegetable parts2. Adhesive Stamps were invented by...

Words: 767 - Pages: 4

Premium Essay

Quiz

...Instructions: 1. The following pages have answer areas for the chapter quizzes and selected matching exercises from the chapters for this workshop. 2. You will need to use your textbook to find the actual quiz and matching exercises. 3. Note that the answer to the quizzes are shown at the end of the chapter under “AIS Action Solutions”. Check your answers for the chapter quizzes before you upload the completed document. 4. Your instructor will evaluate your submitted work and determine the points you will earn for this activity. Chapter 1 quiz Question No. | Answer | 1. | B | 2. | C | 3. | C | 4. | B | 5. | A | 6. | B | 7. | C | 8. | B | 9. | A | 10. | B | Problem 1.4 Match the description in the right column with the information characteristic in the left column. Two of the questions, Numbers 2 and 4 have two acceptable answers. _F__ 1. Relevant | a. The report was carefully designed so that the data contained on the report became information to the reader | _E__ 2. Reliable | b. The manager was working one weekend and needed to find some information about production requests for a certain customer. He was able to find the report on the company’s network. | _D___ 3. Complete | c. The data on a report was checked by two clerks working independently | _G___ 4. Timely | d. An accounts receivable aging report that included all customer accounts | _A___ 5. Understandable | e. A report checked by 3 different...

Words: 619 - Pages: 3

Premium Essay

The Impact of the Industrial Revolution on Western Society

...The Industrial Revolution had a significant impact on Western society and the effects were numerous and mainly positive. The Industrial Revolution began in England in the 1790’s and spread throughout Europe and eventually to America. The extensive effects of the Industrial Revolution influenced almost every aspect of daily life and human society in some way. During this time period, widespread transportation such as railroads became available and important for the movement of goods and people. Also, new social reforms came about, dealing with critical issues including that of child labor. In addition, the effects of the revolution resulted in a great improvement in living standards for many people. Although the positive affects of the Industrial Revolution were plentiful, there were also several negative affects concerning the issues of railroads, child labor, and certain living conditions. The railroads built during the Industrial Revolution allowed for widespread transportation to now be available for goods and people. Consequently, the coal burned in train engines created great pollution resulting in an unhealthy and dangerous environment for the people. In addition, as European governments became involved with the creation of railroads, taxes increased resulting in the lower classes experiencing greater burdens. Despite these negative repercussions, railroads were beneficial to society in a variety of ways. Railroads created a way for people to quickly and easily move throughout...

Words: 1367 - Pages: 6

Free Essay

The Sandwich Factory

...sandwich factory In the short-story The Sandwich Factory by Jason Kennedy, we are shown the negative sides of the work in a factory. We get an insight through an unnamed narrator. The narrator works, obviously, at a sandwich factory. The theme of the story is very vague, if existing at all. What might be a clue to the theme is that the work that is being done at the factory is something a machine easily could do, so something with the view of factory workers. It isn’t really the best job he could think of, but after being fired from the last one, he takes the job at the factory even though the pay is bad. The narrator seems like a rather intelligent person in contradiction to the ones you find at factories; he listens to Joy Division and read novels originally written in Japan, which tells me that he is too clever to be fit for the monotonous work the factory provides him with. This certainly isn’t his goal in life. As the story is told from the eyes of the narrator, it is also tainted with his views and thoughts. We know the narrator is a man as he says, “I had zero confidence with women anyway” in line 96, and the elderly lady at the factory, Dot wishes to find a girl for him amongst the female workers. Again we see the narrator differing from the rest of the workers, as he allows himself to be shy towards girls instead of looking down their tops (lines 109-110 ). He is more humane. I think we are given a picture of what happens if you should happen to stay in the factory for too...

Words: 790 - Pages: 4

Premium Essay

Pdf, Docx

...defined 200 Group Technology (Cellular) Layout Developing a GT layout Virtual GT cells 202 203 Fixed-Position Layout Retail Service Layout Servicescapes Ambient conditions Spatial layout and functionality Signs, symbols, and artifacts 206 207 215 216 Office Layout Conclusion Case: Soteriou’s Souvlaki Case: State Automobile License Renewals technical note TECHNICAL NOTE FIVE cha06369_tn05.qxd 3/4/03 11:05 AM Page 187 FACILITY LAYOUT technical note 187 PLANET EARTH ORBITING THE ASSEMBLY LINE IN A GLOBE FACTORY. THE GLOBES ARE MOVING THROUGH THE FACTORY USING A TRANSPORT SYSTEM SUSPENDED FROM THE CEILING OF THE FACTORY. Layout decisions entail determining the placement of departments, work groups within the departments, workstations, machines, and stock-holding points within a production facility. The objective is to arrange these elements in a way that ensures a smooth work flow (in a factory) or a particular traffic pattern (in a service organization). In general, the inputs to the layout decision are as follows: 1 Specification of the objectives and corresponding criteria to be used to evaluate the design. The amount of space required, and the distance...

Words: 15017 - Pages: 61