GROUP 5(Vandara Kam, Trenton Harris, Elias Osio, Yvonne Ongera, Sagar Patel, Delanie Joseph)

BRIEF HISTORY & OVERVIEW• July 2003 — Tesla Motors is founded in California by Martin Eberhard and

Marc Tarpenning.• April 2004 — Billionaire PayPal founder Elon Musk invests in Tesla and

joins the board.• August 2006 — Actor George Clooney is among those who put down

$100,000 deposits for the first 100 Tesla Roadster electric sports cars.• March 2009 — Tesla starts taking reservations for the Model S and says

production will begin in late 2011. More than 500 people reserve the sedans in the first week.

• June 2009 — Tesla gets approval for $465 million in low-interest loans from the U.S. Department of Energy to produce the Model S.

• January 2010 — Tesla registers for an initial public offering of stock.• June 2010 — Tesla shares begin trading on the Nasdaq Stock Exchange.

The IPO raises $226.1 million.• January 2011 — Tesla, reporting full-year financial results for the first time,

says it lost $154.3 million in 2010.

HISTORY (CONT’D)• Tesla Motors is the second oldest publicly

listed American Automaker (behind Ford).

• Tesla Motors’ stock is the third most shorted on American stock exchanges: 52.9% shares of float.

• Tesla Motors is an automaker based in Silicon Valley, California.

• Motor trend magazine named Model S 2013 car of the year

TESLA ROADSTER• First highway-capable all-electric vehicle

• The motor is air-cooled and does not need a liquid cooling system

• 0 to 60 mph in 3.9 sec.

• Base price of $109,000 in the United States

TESLA MODEL S• 0 to 60 miles in 4.4

seconds

• All Glass Panoramic Roof

• Designed as an alternative to BMW 5 Series, the Audi A6, the Mercedes-Benz E-Class

TESLA MODEL X• Delivery begins in 2014

• 0 to 60 mph in 5 seconds

• Doesn’t use a drop of gasoline

• Falcon Wings open up and out of the way

TESLA’S SERVICE INCLUDES• Annual inspection (or every 12,500 miles)• Replacement parts like brake pads and

windshield wipers (excluding tires)• 24 hour roadside assistance• System monitoring• Remote diagnostics• Software updates• New features

TESLA’S SERVICE PLAN

• Tesla Rangers can come to your home or office to perform most maintenance and warranty repairs

SUPERCHARGER NETWORK• A network of 480-volt fast charging stations to

aid the Model S in making long trip

WORK CULTURE• Pace is fast, the work is

stimulating, structure is limited, & innovation is expected

• Work in small, focused teams• Driven by work that

contributes to a global impact

• They are very passionate about their future in the industry

ENVIRONMENT

• Uses electricity however it is produced, can be from coal, solar, hydro, geothermal, or wind power.

• Zero emissions are released into the atmosphere.

• Electric cars does burn gasoline

CHARITABLE CONTRIBUTIONS2009 Renew America Road trip

• Purpose was to raise awareness about green technology and promote electric vehicles.

• An electric car made by Tesla Motors was driven from New York to San Francisco.

• The proceeds went to different charities: the American Lung Assoc., Parkinson’s Assoc., and local homeless shelters.

CHARITABLE CONTRIBUTIONS2011 Tsunami Relief Efforts• In 2011, Elon Musk, CEO of

Tesla Motors, donated $250,000 to the Musk Foundation.

• The donation funded a solar power project to bring low-cost, clean energy to Soma, Japan.

• The location in Japan was

severely destroyed by an earthquake and a tsunami just months earlier.

BUSINESS PROCESSESManagement Processes• Sell their own vehicles in

company-owned showrooms and online

• Sell their patented electric powertrain to other car manufacturers

• On June 29, 2010, Tesla Motors launched its IPO, raising $226M

• First American car company to go public since Ford in 1956

OPERATIONAL PROCESSES• No Tesla dealers

• No commissioned sales people

• No negotiation

• Transactions conducted online

• No inventory, built-to-order

• $5,000 deposit for test drive

• Wait list of months or even years to get a car

• Cars are marketed, not aggressively sold

• Marketed as a luxury sport car that can compete in the market

• Partnered with Daimler and Toyota

SUPPORTING PROCESSES & SUPPLIERS• Service centers

• Supercharger network

• Tesla Roadster uses parts from around the world

• Powertrain is designed and built in California

• Carbon fiber body panels made by Sotira, in France

• These panels are sent to England, where Lotus builds the chassis

• Cars arrive at Menlo Park, CA, where proprietary components are installed

• Battery cells made in Japan, by Panasonic, assembled in Palo Alto, CA

FACILITIES• Used $365M in federal low-

interest loans to build a Model S assembly plant in Fremont, CA

• Bought for $42M in May 2010, with an investment of $50M by Toyota

• First two retail stores in West Los Angeles, CA (April 2008) and Menlo Park, CA (July 2008)

WHY BUY A TESLA?• They do not require routine Oil changes.

• They do not have any tailpipe emissions and therefore do not require any muffler or exhaust system work.

• They do not require replacement spark plugs, pistons, hoses or belts.

COMPETETIVE EDGE• Dedicated employees- 6 day work week 10-12 hours a

day

• Advertising- Primarily word of mouth

• Customer feedback- Reviews promote the brand as a quality company with happy customers

• Rising gas prices

GAS VS. ELECTRIC

INFORMATION SYSTEMSProcurement• Send out Requests for

Quotation to multiple suppliers• Identify and maintain lists of

suppliers• Strategic sourcing approval

process• Issue Customer Purchase

Orders for parts and tools• Maintain day to day supplier

relationships through a Supplier Relationship Management System

• Asset Management System handles purchasing of equipment and technical infrastructure

Source: “Tesla Systems Integration Diagram”

INFORMATION SYSTEMSProduction• Build custom ERP solution systems• Requirements Management System (RMS) for Tesla planning• Product Data Management System (PDMS) to support the

engineering and preparation• Asset Management (AMS) handles commissioning, operating,

and maintaining equipment• Facility Management System (FMS) and Geographic Information

System for Tesla planning and building new structure

Source: “Integrated Information Management for TESLA”

INFORMATION SYSTEMSProject Management• Product Data Management

System allows for coordination of work packages by a workflow engine which optimizes the exchange of information

• Process Manager creates a Work Package and sends it to Project Team

• Project Team executes and document tasks on the information system which automatically sends the data to a Process Manager and Database Manager

• Requirements Management System allows physicists, engineers, safety regulators, and infrastructure managers to communicate and exchange information freely

• RMS also allows engineers and technicians to plan, design, and construct new infrastructure and buildings

INFORMATION SYSTEMSAccounting and Finance• Book payroll and benefits in

accounting system• Organize payroll system and

accounts payable• Accurate expense reporting• Improve Procure-to-Pay

process• Create and maintain proper

documentation for all business transactions

Source: “Tesla Systems Integration Diagram”

Sources• http://www.teslamotors.com/media/press_room.php?id=53&

js_enabled=0• http://www.teslamotors.com/about• http://www.plug-in.com/tesla-motors-roadster-for-charity/• http://www.teslamotors.com/about/executives/elonmusk• http://www.marketwatch.com/story/tesla-motors-revs-up-24

4-million-ipo-2010-06-28• http://scienceofrevenue.com/2013/01/20/tesla-model-s-the-

disruptive-marketing-of-an-electric-car/• http://www.mercurynews.com/business/ci_20919722/silicon

-valley-milestone-tesla-motors-begins-delivering-model?refresh=no

• http://arxiv.org/ftp/cs/papers/0306/0306079.pdf• http://www.slac.stanford.edu/econf/C0303241/proc/pres/38

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