Why Are Tesla Cars So Expensive?

TESLA is a company headed by a well known entrepreneur, Elon Musk. They good in producing all-electric cars. They have challenged the auto industry in so many ways.

But why are their cars so expensive?
Tesla cars are relatively expensive to buy. The flagship Model S sedan has a base price of $70,000 not including a $10,000 extended battery or other upgrades. But just why is a Tesla car so expensive?

Despite the fact that Tesla cars are expensive, there is still a high demand for them. Their sales record every month is high, and they seem to have new sales record every month.

One reason why they are expensive is because the cost to make an electric car is so high that when passed on to the consumer, the cars would be prohibitively expensive. This is a reason why Tesla cars are relatively expensive to buy.

Yet, when you compare Tesla electric cars to other companies' electric cars, you will see that there is still a massive difference in the prices. Tesla cars are more expensive than that of their competitors.

The reason is simply because there's a very high demand for Tesla cars than they can produce.

Unlike established car companies, Tesla motors does not have the manufacturing capacity to meet the current demand all at once. So because demand exceeds current supply, it will basically affect the price, so the price would be bid up.

Tesla seems to be constrained by production, and because there's a high demand, it made their cars expensive.

When do you think Tesla would have the manufacturing capacity to meet the demand?

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