Tesla, Inc. is an automobile manufacturer, focusing on electric and clean energy vehicles. The American company has a worldwide presence, with five factories and numerous showrooms globally. In addition to electric and clean energy vehicles, the company, considered the world leader in plug-in cars, also manufactures other clean energy products, including battery energy storage products and solar panels.
Telsa had a large amount of manufacturing space being occupied by 7 installed furnaces that were sitting idle, no longer needed. The furnaces were highly specialized and could only be used by a handful of companies, so finding a buyer able to use them proved to be difficult. An added obstacle was trying to find one buyer for all 7 assets to eliminate multiple dismantling fees and pick-ups. Due to these obstacles, Tesla struggled to sell the equipment and came to EquipNet for help. While the cost of the furnaces combined with the removal cost was expensive to a potential buyer, the cost for Tesla itself to remove them or sell them for scrap metal could be cost prohibitive.
Rather than removing the furnaces, with a large overhead cost to the company, Tesla was ultimately successful in offloading the assets to a single buyer who was willing to take on the cost of getting all 7 furnaces out of Tesla’s facility. With the buyer paying 100% of costs, Tesla was able to break even while releasing the assets to a buyer who could extend the furnaces’ life and make use of them. Now, Tesla’s facility has over 1,400 square feet of floorspace open again to begin a new project, all while not worrying about the overhead cost of removal that they thought they would be covering themselves.