Annie Fu | anniefu

Problem

Electric cars do not perform as well as gasoline-powered cars.

Mission

“To accelerate the world’s transition to sustainable transport.”

- Tesla 2003

Roadster (2006)o Retrofitted electric powertrain into Lotus car

o 2,400 made, $110,000 each

o Riddled with production issues

Roadster (2006)o Retrofitted electric powertrain into Lotus car

o 2,400 made, $110,000 each

o Riddled with production issues

2008

“I was one of the first cats with a Tesla… But I’m telling you, I’ve been on the side of the road a while in that thing. And I said to them, ‘Look, guys, why am I always stuck

on the side of the f***ing road?”

“I was one of the first cats with a Tesla… But I’m telling you, I’ve been on the side of the road a while in that thing. And I said to them, ‘Look, guys, why am I always stuck

on the side of the f***ing road?”

“In other news, George Clooney reports that his iPhone 1 had a

bug back in ’07.”

Model S (2012) Model X (2015) Model 3 (2018)

• Full-size sedan• $71k – $137k• 210 miles (60kWh)

• Full-size SUV• $77k - $127k• 237 miles (75kWh)

• Compact sedan• $35k• 215 miles (? kWh)

Current Lineup

-2

-1

0

1

2

3

4

5

6

7

8

2014 2015 2016

Bill

ion

$Income

Revenue Gross Profit Net Income

-2

-1

0

1

2

3

4

5

6

7

8

2014 2015 2016

Bill

ion

$Income

Revenue Gross Profit Net Income

$1 billion from China

Valuationo Stock Price: $261.87

o Market Cap: $42.25B

Business Modelo Model S/X – sell few, sell high

o Model 3 – sell cheap, sell many

Business Modelo Model S/X – sell few, sell high

o Model 3 – sell cheap, sell many

o Sell direct-to-consumer

0

5000

10000

15000

20000

25000

30000

Q1 '15 Q2 '15 Q3 '15 Q4 '15 Q1 '16 Q2 '16 Q3 '16 Q4 '16

Un

its

Sales vs. Production

Total Sales Total Production

History

2003

Founded by Martin Eberhard & Marc

Tarpenning

2008

Elon Musk

becomes CEO

2010

IPO

2016

Tesla Gigafactory

1 opens

2017

Tesla Motors

becomes Tesla

Competitiono Domestic (GM, Ford, Chrysler)

o International (BMW, Nissan, Kia, Toyota…)

o Electric startups (Faraday Future, Fisker, NextEV…)

Tesla Model S Chevrolet Bolt EV BMW i3 Faraday Future FF 91

Price $71k $37k $42k $200k

Range 218mi 238mi 114mi 378mi

0-60 acceleration 2.5s 6.5s 7.0 2.39s

Free supercharging Yes No No No

Comparison (2017 models)

Tesla Model S Chevrolet Bolt EV BMW i3 Faraday Future FF 91

Price $71k $37k $42k $200k

Range 218mi 238mi 114mi 378mi

0-60 acceleration 2.5s 6.5s 7.0 2.39s

Free supercharging Yes No No No

Comparison (2017 models)

Secret Sauceo End-to-end control of production to sales

o Visionary business leader (Elon Musk)

o Emphasis on innovations in energy technology

Prediction: Successo On the verge of economies of scale (gigafactory)

o Succeeding in international markets (China)

o Continued innovation (solar roofs)

Mission

“To accelerate the world’s transition to sustainable transport.”

- Tesla 2016

energy

Sourceshttps://www.tesla.com/about

http://www.businessinsider.com/tesla-roadster-history-2016-3

http://money.cnn.com/2011/06/21/autos/tesla_roadster_selling_out/

http://www.businessinsider.com/tesla-the-origin-story-2014-10

http://www.businessinsider.com/tesla-solar-roof-solar-city-features-2017-2/#musk-said-at-the-event-that-each-french-slate-tile-was-made-using-a-process-known-as-hydrographic-coloring-a-process-that-uses-water-to-apply-printed-designs-10

http://www.sciencealert.com/tesla-just-updated-its-mission-statement

https://finance.yahoo.com/quote/TSLA/financials?p=TSLA

https://www.tesla.com/blog/tesla-approach-distributing-and-servicing-cars

https://www.ff.com/en/media/ff-91-press-release/

http://www.autocar.co.uk/car-news/industry/will-faraday-future-take-teslas-electric-crown

http://www.chevrolet.com/bolt-ev-electric-vehicle.html

https://www.tesla.com/models/design

https://www.bmwusa.com/vehicles/bmwi/i3.html

http://blogs.wsj.com/venturecapital/2010/06/28/tesla-motors-valued-at-133-billion-ahead-of-tuesdays-ipo/