McKinseyIndustrial & Manufacturing25 min4 steps
NPV of a Gigafactory
An electric vehicle battery manufacturer has modeled the NPV of its gigafactory, which is currently negative. The client is looking for levers to turn it positive.
55 people tried it
Skills practiced
- business_sense
- graph_reading
- maths
- structure
The brief
Your client is EV-Power, a manufacturer of electric vehicle batteries. They operate a gigafactory where they produce their batteries.
The finance teams recently developed a Net Present Value (NPV) model in Excel, but the result is very disappointing.
The client's question
The CEO is asking you to identify the root causes of this negative NPV and to propose levers to improve it significantly.
4 steps to solve this case
Here are the questions you'll need to answer.
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