Case Part A: Tesla$$s Quality Challenge When Tesla announced the release of its new Model $3$electric car, over $276,000$people from around the world put down $$1,000$reservations for the car within three days. The innovative new car is a follow$-$up to the much more expensive Model S and Model X cars. Tesla, led by Elon Musk, the brilliant CEO of the company, now sells over $500,000$cars a year. The company will soon introduce the Cybertruck, another innovative product. The fledgling Palo Alto, California, automaker has struggled with ramping up manufacturing when new vehicles are introduced. Consider the problems that Tesla had with the Model X sport utility vehicle when it was introduced. The company reported that there were many sourcing changes made late in the process of planning production. Tesla tends to make items, such as the middle seats in the Model X$,$in$-$house rather than outsourcing them, which is done by many car manufacturers. The issues associated with the production of the cars are a complex combination of mechanical and computer software problems. Popular features of the cars include driving$-$assist autopilot functions, auto$-$parallel parking, and auto$-$braking. The cars even have an auto$-$summons feature that lets a driver park and retrieve their car with no one inside. Many post$-$production issues have been addressed through software updates downloaded to customers over wireless connections. Other mechanical problems are more difficult to resolve. Owners have complained that the Model X falcon$-$wing doors will not open. When owners have problems like this, Tesla typically schedules a time to pick up the car for repair and leaves a loaner for use by the customer. Another recent issue was a latch on the third$-$row seat that could come undone during a collision. Tesla decided to recall $2,700$Model X cars to replace the latches with a new design. This recall totally overloaded Tesla$$s service outlets with waits of more than two weeks to make the repair. Some customers were offered rental cars due to the long wait. So far, customers expect the $$white$-$glove$$treatment that Tesla currently offers, but a big concern is what Tesla will do when there are millions of vehicles on the road. Mr$.$Musk$$s Tesla cars have many loyal customers, even though problems have been encountered. But moving from hundreds of thousands of vehicles to millions may be difficult, unless some major service improvements are made.

After reading "Tesla's Quality Challenge" in Chapter $10,$ answer the following questions. "How can Tesla counter the recommendation to avoid new models in their first production year?" Ground your response in case details.