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Can Success Cause Tesla to Fail?


Tesla has unleashed a furore with the announcement of its entry-level Model 3. It received a quarter of a million pre-orders within the first 24 hours and it was surpassing the 325,000 for the first week. And counting. Can it cope with so much success? The first customers in the line will have to wait for one year to take delivery of their $35,000 purchase, which has risen to an average of $42,000 for the many options they have requested in their vehicle. The electric car-maker does not have the capacity to immediately meet this kind of demand. And its $1.1 billion cash reserve is too small a cushion to offer incentives that larger, traditional rivals like GM, Mercedes or BMW, can afford. And, most importantly, what if the product fails to meet expectations?


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