DEMAND OF THE NEW TESLA CAR

DEMAND RISES FOR THE NEW TESLA MODEL 3



For those who do not know, Tesla is a company that makes electric cars, located in Silicon Valley, California. They recently launched a new model, called "Model 3", priced at US $ 35,000. However, model 3 will not be delivered even to the one who bought it, so Tesla has received about 350,000 reservations. It is believed that mass production of the product has begun by the end of 2017. (Source: Harvard Business Review). 

This news is related to the previous article, "OFFERING AND DEMAND", in which the demand exists thanks to the needs of the people, creating companies that offer products, to satisfy those needs. We can ask many questions about this article, related to the issue of supply and demand. For example, why was the price set at $ 35,000? The price of a product is a very important role and is decided by analyzing various factors, such as the price of inputs for manufacturing, labor, state, etc. Other relevant questions, Why was it decided to launch the product before? Of being able to deliver it and if 350,000 reservations have been received, is it a positive or negative result? Probably, the number of sea reservations is an important factor when making the decision of what quantity will be manufactured in the future. That is, perhaps Tesla expected 700,000 reservations, if so, perhaps the company reconsiders the amount that it had thought to offer and that having a lot of supply and little demand is very inconvenient.

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