Tesla Motors Inc. as a Sustainable business model (Model S)

1. “… Tesla S Model it’s what Marty McFly might have
brought back in place of his DeLorean in “Back to
the Future” ...” Consumer Report May 2013

2. CONTENT
The
industry
1
The
Model S
The
Company
2
Conclusion
3
The
Triple bottom line
4
5

3. The
INDUSTRY

4. The EV Industry
 Most promising technology
 Revolutionize the cost of mobility
 Technology driven
 Full of uncertainties
 Full of competition
 Government deeply involved
 20 million EVs on the road by 2020
Source: EVI

5. The
COMPANY

6. Tesla Motors Inc – Elon Musk


Co founder of:
At 12 he sold a computer code for a video game
called Blastar


42 years old
Academic career:
 Queens university
 Wharton School
 University of Pennsylvania

President of:
He is actually being compared with the Marvel fictional character Tony Stark (Iron Man) for his actual work in
robotics and for being focused to protect the environment

7. Tesla Motors
 Established in 2003
 2010 Initial Public Offering
 Tesla Roadster
 Model S
 Model X
 Powertrain components suppliers

8. The
Model S

9. Tesla´s Model S

Second electric car

Basic Model price: USD 69.900

Released in June of 2012 (2.300 pre
ordered units)

Secret of success: a complex habitat of
batteries plugged into the car

The batteries last longer and can be
recharged faster

It can go from 0 to 60 mi in 4 seconds
Design + manufacturing are kept inside the company = Intellectual property
The new Ford Motors + Exxon Mobil (vertical integration)

10. Tesla´s Model S

Special pack of services
 Leasing option (US Bank and Wells
Fargo)
 Buy back option at a fixed rate
 Free lend of an Model S while
maintenance is being done

Vertical integration on sales focused on
customers experience

Wide range of stores all over the world: San
Francisco, New York, Geneva, Paris,
Berlin, Copenhagen, Hong Kong and
Sydney

11. Tesla´s Model S Positioning
 First Luxury car 100% electric
 Outstanding performance
 Package of services

12. The
Triple bottom line

13. TBL: Social
 Gas savings
 Federal tax credit
 Lower service and maintenance expense
 Time and hassle
 Impact on the community and economy
 Other incentives

14. TBL: Environmental
PROS
 Zero tailpipe emissions

Economic support from Federal and Local
governments

No noise pollution

Improve the efficiency of utilization of energy

Less waste
CONS
“Relocation” of environmental externalities:
 In the vehicle supply chain like metal depletion
 In the Power Plants that produces electricity

15. TBL: Financial
 Stock price increased 6 times from
its initial price
 Doubled its revenue in 2012
 Revenue Projection of Model S in
2013: 1.2 billion USD

16. Conclusion
“I thought: 'Well, what are some of the other problems that are likely to
most affect the future of humanity?' Not from the perspective, 'What's
the best way to make money?'” Elon Musk, Tesla CEO

17. QUESTIONS