The Struggle to find Equilibrium between Production and Finance

Tesla, arguably the top electric car in the industry, has recently released its second model, MODEL X.  This luxury car will come with features unavailable in other electric cars, and very rarely seen in the car industry at all.  These include falcon winged doors, highly effective ventilation, as well as many other features that add the the cars uniqueness.

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The new MODEL X, deemed the most important Tesla ever

This Focus type strategy centred on the fact that differentiation will make it or break it, is a gamble that the company is willing to make.  The cost to cover the cars production is immense, and the features of the car add to the cost making it a car that is unusually expensive compared to other luxury cars or its class.

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Features of the new Tesla MODEL X

The popularity of the car is the factor that will allow the production to go forward, as if individuals see this car as just an overpriced electric car, the model will be discontinued.  To add to this, Tesla had chronic production issues, that might deter customers from purchasing, as it would be a long wait until they actually had possession of the car.  Tesla is risking a very expensive luxury car, with the belief that its new features and uniqueness will be its selling point.

References

http://www.businessinsider.com/the-model-x-is-on-a-crucial-mission-for-tesla-2015-10
http://gazettereview.com/2015/09/tesla-motors-inc-nasdaqtsla-model-x-is-almost-here/

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