Tesla Motors is an electric vehicle company based in Silicon Valley. The company designs, manufactures, and sells electric cars like the Tesla Roadster. As an upper level manager, it is important to understand cost volume profit (CVP) analysis to maximize production and profits. CVP analysis examines how changes in sales volumes, costs and prices affect profits. Key components of CVP include volume, unit price, variable costs, fixed costs, and sales mix. Understanding these components helps predict profit margins and measure business success. Tesla faces high demand for its vehicles but must balance meeting orders while controlling expenses to avoid losing revenue or customer goodwill.