“The equivalent to AWS on the hardware side is China. Hardware start-ups are able to manage infrastructure limitations and scale much more quickly by tapping into Chinese manufacturing capabilities, either directly or by working with companies like the custom manufacturing design firm PCH. The smart thermostat maker Nest, for example, had only 130 employees when it was acquired by Google for $ 3 billion, largely because it had outsourced all of its manufacturing to China. In contrast, Tesla Motors has seen its growth held back by infrastructure limitations. Due to the complexities of its manufacturing process, Tesla’s production rates have lagged behind those of other automakers, the result being that its award-winning vehicles are almost always sold out, with back orders measured in months and even years. Demand generation is not a problem for Tesla; meeting that demand is.”