Tesla:Challenging dominant industry logic

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“To accelerate the world’s transitionto sustainable transport.”

Mission Statement

The generic automotive manufacturing business model is simpleWHO is the customer?

People and businesses with individual transportation needs

HOW is value created?

Manufacture of complete transport solutions through collaboration with various partners

Distribution of vehicles via third parties

WHAT is the solution?

Transportation from A-to-B with motorized vehicles

WHY is it commercially viable?

Price per vehicle unit based on custom-equipped add-on features

Tesla goes further ...

WHO is the customer? Ecologically aware car drivers Homeowners, businesses and utilities Stakeholders interested in increasing their use

of renewable energy

HOW is the value created? Own branch stores Network of well-placed charging stations Close customer relationship to meet specific

needs

WHAT is the solution? Clean energy ecosystems Sustainable batteries for homes and

businesses as well as self-driven electric cars

WHY is it commercially viable? Sales of sustainable energy units When fully operational by 2020, Tesla’s

Gigafactory will decrease battery cost by 30%

Tesla’s business model is more complex

Strategy

Build expensive sports car

Reinvest earnings into construction of affordable car

Reinvest in construction of more affordable car

Simultaneously provide zero-emission charging options

How did Tesla innovate?

AikidoElectric vehicles were considered inferior until Tesla built powerful, desirable cars. In so doing, Tesla became a successful leader in green tech.

Direct Selling

Tesla operates about 260 flagship stores worldwide. The goal is to expand retail operations with a company target production volume of 500,000 vehicles by 2018.

IntegratorAround 800 supercharger stations with more than 5,100 superchargers top up Tesla vehicles in minutes. The firm’s Gigafactory is powered by 100% renewable energy.

Solution Provider

The company’s first big push into energy was marked by the introduction of the Powerwall and the Powerbank. Tesla further acquired SolarCity to provide efficient solar roofs.

Open SourceTesla is fully committed to its vision. In 2014, Tesla made its electric vehicle patents open source – an unprecedented move for a for-profit company.

More information:www.bmilab.com