Ch. 11 Developing and Managing Products

 The Tesla Model S was first shown to the public in 2009, retail deliveries started in the United States in June 2012. The Model S was released in Europe in early August 2013, and the first deliveries was in, Switzerland and the Netherlands. Developing the Model S was a process because it was new and an alternative to internal combustion vehicles.  Elon has overseen product development and design from the beginning. Model S is unique as in the only car made the way it is. The chassis, body, motor and energy storage systems are unique to Tesla Motors. Tesla has told investors that Model S development would cost about $400 million. Model S is the top selling car in the electric car category. The company said it sold about 4,750 Model S sedans in the first quarter with, $383 million in revenue. Tesla CEO Elon Musk said, production will increase from about 400 cars a week to nearly 500 cars By the end of 2014. Tesla expects to be able to manufacture as many as 40,000 Model S units per year. According to Tesla, North America Model S demand is about 20,000 cars a year. European demand should be similar, and Tesla plans to set up distribution in China and Japan. The life cycle for the Model S is said to be long because they will constantly be upgraded over the years .