To compete in the automobile​ market, Tesla must make many strategic decisions such as whether to introduce a new car​ model, how to sell and service its​ cars, and where to advertise. At​ Tesla's Fremont, California​ plant, managers must decide on the monthly production quantities of their S and X models. In making this​ decision, the managers

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At​ Tesla's Fremont, California​ plant, managers must decide on the monthly production quantities of their S and X models. In making this​ decision, the managers must face a trade-off, because producing more of one model means producing less of the other. So, there need to an optimum balance between production of model S and X and too will depend upon the demand in the market once, the variants are launched.

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