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News Link • Business/ Commerce

Here's Why Surging Demand Could Be A Problem For Tesla's New SUV

• Business Insider

The all-electric vehicle, which has captivated the media and prospective owners with its "falcon wing" doors, is scheduled to begin rolling off the assembly line next year, alongside Tesla's already-in-production Model S.

At cleantechnica, Christopher DeMorro nails a looming potential problem:

Even with new manufacturing tools increasing production to as much as 3,000 [Model X] vehicles per week, the assembly line still has to be split with the Model S. If Tesla dedicates 50% of its total capacity to the Model X, it would take more than a year just to work through the orders it already has.

There's a very important business issue at play here. Demand is only useful if you have the capacity to supply it. Otherwise — as Tesla CEO Elon Musk has pointed out — you just have angry customers who are being forced to wait too long to get the cars. 

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