Tesla Model Car

Tesla is an electric car manufacturer, it provides expensive but high-quality electric cars. Tesla reduced its production in 2014, targeting to 33,000 vehicles, compared to its original goal of 35,000. Second, Tesla delayed the delivery date for its upcoming Model X once more, to the third quarter of 2015. It seems that Tesla is having a difficult time of manufacturing.

The main problem of the reduction in car production I think is that the supplier of Tesla did not finish the amount Tesla required. Because they do not think Tesla will last for a long time. At this time, they are in a hurry to finishing the production, but there are still some elements that need to be done in a relatively long time.

In addition, as Tesla generates positive externalities (it does not generate emission which means it is environmental friendly), government can give subsidies to the company to encourage the production of electric motor cars in order to reduce the pressure for its manufacturing.

In conclusion, Tesla is still facing many problems, but from a letter to shareholders: we prefer to forgo revenue, rather than bring a product to market that does not delight customers. I am convinced Tesla will still, win the popularity in the future.