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  • William Maley
    William Maley

    Tesla Considers Increasing Production Of The Model S

    William Maley

    Staff Writer - CheersandGears.com

    July 26, 2012

    This week, Tesla announced that it's considering boosting production of its Model S sedan to 30,000 units in response to a waiting list that stretches for 10-11 months.

    Tesla CEO Elon Musk said in a conference call with analysts that the company is expecting to sell 5,000 Model S sedans by the end of 2012, with 20,000 sales expected next year. That could increase to 30,000 with the addition of a second shift. Currently, Tesla has 12,200 reservations for the Model S sedan.

    "Our key objective for the rest of the year is to ramp production with a focus on quality and to rollout the Model S experience to a broader audience through customer deliveries, test drives and store openings," Tesla said in its second quarter 2012 shareholder letter.

    Source: Inside Line

    William Maley is a staff writer for Cheers & Gears. He can be reached at [email protected] or you can follow him on twitter at @realmudmonster.

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    Yawn, a drop in the bucket for a car that is for the upper 1% category.

    I find it hard to get excited about this product line. If they were to report that their 300 mile range of electric technology was being licensed to GM and Ford than I would be the first to get up and dance!

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    Wonder who will buy them up? I just got this gut feeling that they are doing minimal while they wait for a large company to come in and buy their technology and assembly line so they can get a profit back to the investors.

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  • Posts

    • Yeah...Rolex too.  *sigh* I am not enraged by this kind of business model, though. I understand the reasons as to why some brands go for this.  If the marketing and the sales tactic itself is done correctly, it ensures that the brand is viewed as prestigious and in turn desirable and the limited object that is sold is  therefore rare and exclusive.  Which in turn makes more money than brain folk think they have an object that nobody can have and makes those that do not have it wish that they did have it which in turn creates a must obtain it before the other guy obtains it.   Ferrari has perfected this formula.  No matter what limited car they come out with next, anybody with some money and clout and obviously more money than brains will always feel like they need to own the next big thing Ferrari.  Ferrari has been doing this since forever.  Porsche and Rolex only figured this out recently.  They have some bugs to work out with their marketing though. Ferrari's marketing is unbelievably excellent in preserving the prestige it has created for itself.  The question of the the sales tactic itself?    Well... its a private club that the company wants to create for itself.  And that is all that it is.  The company wants to control who is to own their product. The company protects their image this way. At least in theory. It also protects the current club members ensuring that if they want to depart with their older classics, they will get top dollar for their purchase to buy the latest new desired product, instead of the top dollar money going to scalpers of you will...  This also prevents depreciation of the older product, increases desirability for the older product AND the newer product. It ensures that the older club members continuously buy newer more expensive product  ensuring the company have future sales of future newer products.   Creating desirability and creating new members to join that so called exclusive club.     Does this create brand loyalty? That is the hope. But it does create, if done correctly, brand desirability and prestige. 
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