Question
Tesla's risk mitigation plan in the electric vehicle industry has several practical applications. Firstly, it involves securing the supply of raw materials needed for mass-producing electric vehicles. For instance, Tesla has signed deals with mining companies to ensure a steady supply of nickel and cobalt, which are crucial for battery production. Secondly, Tesla is mitigating risks by investing in lithium battery recycling. This not only ensures a supply of materials but also reduces environmental impact. The company plans to recycle about 92% of battery cell materials using its own unique process.
This question was asked on:
For example, with all these new competitors, Tesla now has to prove to its stakeholders it has a strong mitigation plan. Part of Tesla's risk mitigation plan is to invest in the raw materials needed to mass-produce EVs. In 2020, Tesla signed a new deal with mining giant Glencore to secure its nickel and cobalt supplies over the next few years. But Tesla competitors Stellantis and Renault are now doing the same with lithium. So how does Tesla continue to mitigate risks? Lithium battery recycling. While Tesla used third party lithium recyclers for years, the company invested in its own plans to recycle about 92% of battery cell materials with its own unique process.
Receive new free presentations every Monday to your inbox.
Full content, complete versions — No credit card required.
