Tesla Model X In China Case Study

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Tesla Model X in China
Tesla Motors finally launched its Model X SUV on 29th September. The vehicle has some striking luxury features such as falcon-wing doors, independently operable second-row seats and an enormous front windshield. In addition to these Model X has a bio weapon defence system. The system reportedly creates a positive pressure inside the vehicle, which makes passengers feel as if they are in a healthy environment. It is also equipped with a medical grade High-efficiency Particulate Air (HEPA) filter in order to help remove the harmful bacteria, pollen, viruses and pollution from the outside air before circulating it in the cabin of the vehicle.
This bio-weapon defence system is a great idea incorporated in a passenger vehicle …show more content…

The segment has grown about 45 % since the start of the year. But seeing this phenomenal growth rate for a few years now, most local and foreign automakers have joined the party and increased competition. The intensified rivalry in the Chinese SUV market has now started to put a similar pressure on the SUV prices like we have been seeing in the case of car prices since long.
However, Tesla’s Model X should not be looked at simply as just an SUV. The tag of SUV is less relevant in the case of this electric vehicle. Thus its fortunes will be less dependent on how the SUV market in China is doing than on how the country’s electric vehicle market is shaping up. On that front, Tesla has some relief because the Chinese government is in full support of developing the new energy vehicle infrastructure in the …show more content…

In order to turn profitable, Tesla will have to increase volumes and drive down per unit cost. Once its Gigafactory is launched in FY17, the company will be able to manufacture 500,000 cars, which will lower its EV’s price by 30 %. Some analysts believe that such mass production would bring down the price by up to 70 %. Therefore Tesla will have to accept that at present Model X is not going to help it achieve its sales targets. But going forward only as it would put competitive prices to its cars and also launch the mass market Model 3, Tesla will see its efforts bearing fruits in China

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