Tesla Motors
Eric Baiden-Quayson | Kevin Gaiffe | Guillaume Heuzé | Corey Holloway | Zeya Sun | Fan Wu
Brand History & Company Overview
Nikola TeslaThe Roadster model uses an
AC motor descended directly from Tesla's original design
History● Founded in 2003 by a group of engineers in
the Silicon Valley - wanted to prove electric cars could be better than gas-powered cars
Image● Disruptive intersection of manufacturing,
innovation and capital experienced by the auto industry, well beyond the realm of traditional auto manufacturing
Value Proposition● Affordable driving as an exhilarating
experience
Elon Musk
Co-Founder of Tesla Motors
● Net Worth: $7.9B● Became CEO of
Tesla in 2008● 32% stake in the
company● First electric sports
car● Brought in Toyota &
Mercedes as investors
● Tech patents shared
● Working on consumer battery pack for home use
● Projected to sell 500K cars by 2020
● Believes Tesla could be worth as much as Apple in 10 years
Current & Future Tesla Models
Roadster $109K
Model S$71K
Model X$69.9K
Model III$35K
Tesla Model S vs. Lamborghini Aventador
Business Model & Financial Information
2014 Overview● Valuation: $25 billion● 32,000 cars sold● 35,000 cars produced● 2014 Turnover: $3.20 billion● Opened first battery swap
station in CA 2015 Outlook
● 10K pre-orders for Model S, 20K for Model X for 2015
● Production goal: 50,000 cars● Model X delivered by 3Q
Issues In Asia● Diminishing returns (in thousands) in
Asia: o 2011: 10162o 2012: 7613 o 2013: 1004
● Customers reluctant to switch to electric vehicles
● China was only 15% of global wholesales● Lack of sufficient refueling infrastructure● Expected combined sales in Europe &
Asia to be double those in N. America● Lack of governmental awareness in
green push in China continues to hurt
● Europe: 82● US: 124● China: 23
China’s uber-rich care more about luxury bells and whistles than having a car that is deeply green
Issues In Asia
● Sold about 120 cars in China in January 2015, well below target
● Imported only 444 units to China in the month of December, down from 747 the month prior
● About 45% of the Model S cars imported to China in 2014 are still unregistered with local authorities.
Rivals & Potential Competitors
Apple Titan BMW i8 LeTV Supercar Fisker Karma Chevy Volt
Gigafactory● Expected cost: $5 billion● Production of electric
batteries ● Adding 6,500 employees● Reducing the cost of
batteries by 30%● Eventually churn out
enough batteries for 500,000 vehicles
● The factory would produce 50 GWh
Tesla Gigafactory
Already spent an estimated $53.1 million on construction
Expected production to surpass 500,000 by 2020
Employees & Recruitment
Arnnon Geshuri, President of HR
● Tesla has seen a dramatic increase in number of employees over the last several years
● This development thank in large part to Arnnon Geshuri, former president of recruitment for Google.
● On the official Tesla website, many full-time job offers can be found.
184 offers at HQ (Palo Alto, CA)
The Future of Tesla
● No expected profit until 2020, when annual sales will reach 500,000
● They will sell “a few million cars” by 2025● Considerable speculation among industry
experts that Apple will buy Tesla or develop their own vehicle(s) ○ $75 billion in less than 18 months ○ 100+ former Apple employees○ Co-branding opportunities
Supercharging Milestones
● Largest fast-charging network on the planet
○ 20 mins. - Model S: charge 50% of the battery
○ 40 mins. - full charge
● Free charging service○ Conveniently
located○ 384 worldwide
● Strategic technology○ Spread costs,
open quickly
Mileage & Charge Duration
Supercharger Stations
North America
Asia-Pacific
Patents & Technology Sharing
From Elon Musk:
Tesla has "several hundred" patents related to all areas of its electric vehicles, including batteries and electric control systems
Tesla isn't worried a competitor could use patents to undercut the company
Tesla's patents for its vehicle supercharging stations could be shared with other automakers, which could help spread costs and more quickly open more stations
Additional Ventures
Providing electric powertrain components to Daimler, Mercedes & Toyota
They are strategic partners and competitors Motivation for these ventures:● Bring additional revenue● Make electric cars affordable
With Toyota
● Completed development services for the Toyota RAV E4 in early 2012
● Entered into a powertrain component sales agreement with Toyota for RAV E4
● Supplying electric powertrain systems (including the battery, charging system, inverter, motor, gearbox and associated software
Marketing/Digital Strategy ● Tesla has a very small marketing team● Spends significantly less on
advertisements compared to traditional car dealerships (brick-and-mortar spaces advertise the company in luxury malls and areas)
● Brand name is mostly promoted through curious journalists, consumers and word of mouth communication (through social media)
● Lastly, Tesla avoids the high cost of traditional advertising
Social Media PresenceFacebook: Nearly 800K likes and 20K people talking about brand daily
● Receives the most content and consumer interaction
Twitter: The brand has 490K followers and only follows 278 individuals
● Promote consumer awareness
Instagram: 109K followers and follows 0 individuals● Focus on the functionality of new products and the
stunning visuals of the productsOverall, social media strategy is to engage, inform and excite their current and potential customers
Smartphone Application
Tesla Motors App: allows for the customer to visually see their vehicle charge in real-time (consumers can start or stop charging from app)
- Essentially consumers can virtually work majority of the vehicle functions from the app (heating and cooling system, sunroof functions, lock or unlock from a far, etc.)
- App complaints consistent of infrequent glitches
- Overall, 10,000 downloads via Google Play and consumers rate Tesla Model S Beta app 4.5/5
Geographical & Product Expansion
● Geographically expanding their manufacturing production footprint in Tilburg and the Netherlands
● In 2020, Telsa’s gigafactory in Nevada is set to produce the more lithium ion cells than all of the worlds combined output in 2013
● Model X will be launched in 2015 for volume production
Our Visit to Tesla in Geneva
Thank You!Any Questions?
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