Gas Prices Are Making Tesla Sales Surge — And That Could Be A Problem
Tesla is seeing a massive increase in orders due to all-time high gas prices, and the risk of a bottleneck looms upon the company. The Russia-Ukraine war is driving the rise in gas prices in the U.S. due to sanctions on the country and bans on Russian oil and gas. The world is beginning to wake up to the reality, risks and consequences of depending on foreign gas.
One of the greatest appeals of electric vehicles is their potential to cut off dependency on fossil fuels entirely. The global transition from gas to EVs has historically been slow and progressive, and EV makers have been able to cope with demands. But in the past two years, the switch to green has accelerated. Even before Russia invaded Ukraine, EV carmakers were already having trouble keeping up with their orders.
Related: Why The Invasion Of Ukraine Will Extend The Chip Shortage
As Americans switch to EVs due to historically high gas prices, Elektra reports that Tesla is seeing an increase of 100 percent in orders. The company was already battling delayed orders but will now have to speed up the production double-time to steer its way out of a bottleneck. A gridlock in business is apoint of congestion in a production system caused by demands and a workload that comes in faster than the production line can handle. The impacts and risks for Tesla are severe. Increase in prices, loss of clients, brand depreciation, stock crash, insolvency, workers and supply chain problems, and even bankruptcy are linked to bottlenecks.
As Tom's Guide reports, from the first models to the Roadster and the Cybertruck, the company has always been vulnerable to delays and let deadlines fly by. During the first years of the company's operation, the demand for EVs was not yet
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