Week 2 Discussion-Tesla Motors

WEEK 2 DISCUSSION-TESLA MOTORS Student name: Institution Name: TESLA MOTORS PART 1 The stock in Tesla was estimated to be in excess of 75 percent in the year 2017(LaMonica, 2017). Tesla's fairly estimated worth is presently $62 billion. Consequently, it makes the company wealthier compared to the three giant automakers. In view of its overall performance, Tesla is not worth its high valuation but it is priced too high because it is considered new and trendy. I would not personally invest in Tesla and would instead prefer investing in one of the already established companies like General motors or Ford. Based on the argument from Wasik, (2017), Tesla motors had so far made only two profitable quarters and lost to a tune of $17 million in the year 2016. On the contrary, during the same period, the giant General motors posted a huge $9 billion profit (Wasik, 2017). PART 2 I found this link /econ/cost/cost.html touching on economic concepts and particularly production cost very useful. It was great to learn that in economics, an organization’s cost heavily relies on the notion of economic cost. Further, it was important to learn that the calculations of economic cost heavily rely on opportunity cost which in essence is a fundamental principle of economics. Additionally, it was no...