Here, I want to comment on   Shang Yu (Angela) Liu’s Blog about Tesla’s current pressing issue of lacking in production. As we have discussed in class, Tesla set those car-lovers on fire because its value proposition has convinced them. Being the first major electric car in the auto industry, Tesla has differentiated itself as its products being environmental friendly- non-gas filled cars. The pain comes when the rising demand has not been met with its low-speed production.

I agree with Angela’s opinion on that Tesla still needs to devote more to the project of lowering costs. As in class, our group agreed to that Tesla’s electric cars are designed for wealthy people. Taking a look at the big picture, Tesla’s affordability will become a huge issue in the future if the cost of production stays high throughout. Demand may become Tesla’s issue in the future. Also, once a new, less expensive electric car is introduced, Tesla will lose great advantages to its competitors. Thus, as Angela suggested Tesla should definitely invest and delve into its research in order to achieve prospective success.

picture: http://venturebeat.files.wordpress.com/2014/02/tesla-model-s.jpg?w=780