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Tesla recently announced that it was committed to building a new gigafactories in Austin, TX and Berlin, Germany where they will produce the Cybertruck, Model 3, and Model Y. While Tesla continues to be the leader in Battery Electric Vehicles (BEVs), they also continue to face the threat of mounting competition from exiting car companies who have announced plans to develop their own lines of BEVs. Explain from an economic perspective how the commitment to these new, large production facilities in Austin and Berlin can aid Tesla in maintaining their role as market leader. Your discussion should include a relevant discussion of the Stackelberg model, how Tesla can leverage its first-mover-advantage, as well as the economic value of credible commitments in fending off competition. (Hint: think about Tesla's optimal strategy in terms of being the first mover, and what this means for its primary rivals)
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