2. Tesla Motors: An Introduction
• Ranked #3 on the 2015 Most innovative
companies by BCG 10th annual listing
• Electric Automotive, Renewable Energy Storage
Systems
• Founded July 2003
• Headquarters: Palo Alto, California, US
• Number of employees: 13,058 (2015)
• Key person: Elon Musk (Chairman and CEO)
3. Tesla Motors: Financial overview
• Revenue: US$4.04 billion (2015)
• Operating income: US$-716 million (2015)
• Net income: US$-888 million (2015)
• Total assets: US$8.09 billion (2015)
• Market valuation exceeds $30 billion
4. Elon Musk
• Born June 28, 1971, is a South African-born
Canadian-American business magnate, engineer
and inventor
• The founder, CEO and CTO of SpaceX; co-founder,
CEO and product architect of Tesla Motors; co-
founder and chairman of SolarCity, co-chairman of
OpenAI; co-founder of Zip2; and founder of X.com
• As of June 2016, estimated net worth of US$12.7
billion, the 83rd wealthiest person in the world
5. • States that the goals of SolarCity, Tesla Motors, and
SpaceX revolve around his vision to change the world
and humanity
• Goals include reducing global warming through
sustainable energy production and consumption, and
reducing the "risk of human extinction" by "making life
multiplanetary" by setting up a human colony on Mars
• Envisioned a high-speed transportation system known
as the Hyperloop, and has proposed a VTOL supersonic
jet aircraft with electric fan propulsion, known as the
Musk electric jet
7. 1
• Tesla figured out how to bring an 85kWh battery pack
to market at an affordable price point
• The Tesla Roadster has standard range of 393km for
one time charge
• Model S standard range varies from 335km to 426km
for one time charge
• It innovatively equipped Tesla Roaster with thousands
of laptop Lithium-ion cells and assembles them into a
performance and cost optimized battery pack
• Most other OEMs choose a 16-24 kWh battery pack
allowing a small range from 100 km to 160 km
8. 2
• Direct to Consumer Distribution Model
• Tesla feels as though there is a “fundamental conflict
of interest” for dealers trying to sell both traditional
gasoline vehicles and electric cars
• Sell cars online
• Save time and money by skipping the middleman
• Customers require a great deal of information and
education before making a purchase, and Tesla entrust
the responsibilities of “electric car education” to their
own employees
• Also has Apple-like retail outlets
9. 3
• Customer deposits up front—a year, two years,
three years in advance of production and delivery
• They are essentially no-interest loans, or free
money
• With 325,000 people signing up and paying $1,000
each for Model 3 reservations, the company just
hoovered up another $325 million—without
paying a dime in Wall Street underwriting fees
10. 4
• Building a mass-market vehicle with an aluminium
structure, and doing so profitably
• Aluminum does not corrode as easily
• Its lighter, Steel is about three times heavier per
volume than aluminum
11. 5
• Simple application updates – Customers can treat
a Tesla car as an App that can be upgraded on the
fly when bug or better algorithms are found
• Updated over the air
• Car can determine the distance to be covered and
the location and distance of nearest charging
station
• Screen offers advance features to control most
aspect of the car
12. 6
• Personalization – Customized experience for
different drivers with car seat, climate control, and
other features etc.
13. 7
• The Tesla Gigafactory 1 is a lithium-ion battery
production factory in Nevada
• Would enable Tesla to produce 1,500,000 cars per
year
• Earthquake resistant
• Highly automatic production using robots
• Solar and wind power generated for plant use
16. Appreciation rather than Depreciation
• Old adage that “a new car loses value as soon as you
drive it off the lot”
• Tesla continues to innovate by making cars that are
energy efficient AND extremely cool looking
• Cars are loaded with software. And because software
can be updated frequently and seamlessly, a Tesla’s
capabilities could potentially improve over time
• The longer you own your Tesla, the more features and
capabilities the car will offer you
