By Ben Follett Executive Summary Tesla will most likely be having - PowerPoint PPT Presentation

By Ben Follett

Executive Summary Tesla will most likely be having another net loss in 2016 due to global expansion. Tesla probably wont see profits until the Model 3 is in full production. Tesla is in its infant stages of company. All free cash flow is put back into the organization in order to keep expanding globally and bring mass market EV’s to market. Tesla’s Gigafactory will help cut the costs of lithium ion batteries. This will allow for less expensive, more competitively priced Tesla’s in the future. Tesla wants their battery pack to become the universal “go to” battery pack used on electric vehicles. It released its patents back in 2014 for competitors to use “in good faith.” Battery Swap technology could make electric vehicles more appealing to an even larger audience.

Company Description Lines of Business Automotive Energy Storage Mission Statement Roadster “Our goal when we created Tesla a decade ago was the same as it is today: to accelerate the Model S advent of sustainable transport by bringing compelling mass market electric cars to market as soon as possible.” – Elon Musk, CEO of Tesla (2013) Model X Model 3

2003-2020 esla imeline Tesla employ’ s 10,161 - Gigafactory Tesla Releases the Tesla Introductio expected to be Tesla Elon Musk’s $6.3 Model 3 announces n of a new 100% functional Tesla Motors - Motors million dollar car lineup its purchase - releases the founded by investment Over 325k Elon Musk of the Giga- - Lithium Ion Battery Model S reservations in the Martin earned him a Pick up becomes CEO Factory price drop? - Eberhard spot on the first 7 days of Tesla - truck? - $413 million in and Mark board of - Motors after 3.2 billion in - Expected: 500,000 sales 13,000 employees Tarpenning directors recession Model Y? sales cars annually (2012) (2003) (2004) (2016) (2008) (2014) (2018) (2020) Powerwall Model 3 Tesla Motors Tesla employ’s Tesla Tesla Tesla Motors production is production releases the 5859 people Headquarters Roadster ramped up goes public. expected to Model X & - is located in released - - begin. Powerwall Tesla Motors is Palo Alta, (2006) Producing Annual sales - the 12 th most - California were $120 300,000- Gigafactory - shorted stock on (2003) million 400,000 cars a battery 4.05 billion in NASDAQ year (2010) production sales (2013) (2019) expected to begin (2015) (2017)

Competitive Strategy Supercharging Network Gigafactory Released Patents Battery Swap Program • Replace a battery after $4.5 billion to create Strategically placed • • Tesla standardizes the • 10 years for $10,000? – & 10 million sq. ft. recharging stations EV battery Heck no! WAY more space Quick & free charging • • Currently creates the • • Robotic machines that than Tesla currently Help diminish the fear of • safest & fastest swap an empty car battery in 3 minutes for a needs. range anxiety charging EV battery full one for $60 – Heck Create a low cost Find all locations (or the • • Accelerate the EV • yes! industry standard closest) through maps market • Battery Swap Program battery pack application in the car State and Federal • could become a global Imagine one battery All locations are free and • • Government enact new standard pack that was a 30 minute charge will legislation on the • Could be found at any supercharging interchangeable grant you 170 miles “Clean Air Act” station…let alone gas through all EV’s The 30 minute recharge • encouraging EV’s over stations Could Tesla get time kept Tesla from • gas powered • Competitors will want to selling much beyond other automakers on Gigafactory finds its • ride the wave when this board? earlier adopters and the volume…. technology is released to believers the public • Important source of new revenue for those who take advantage of this service • EV owners will demand it: not only for speed but to escape paying $10k

Firmographic Data Locations Employee Count Tesla Employee Count 14000 12000 10000 8000 6000 4000 2000 0 2010 2011 2012 2013 2014 2015 2016 2010: IPO: 899 employees 2011: 1,417 2012: 2,964 2013: 5,859 No North America: Europe: Eu United Kingdom Asia Pacific: As Ap April 1 st st , , Ex Expansion: 2014: 10,161 USA Austria Italy China South Africa Canada Belgium Luxembourg Hong Kong South Korea 2015: 12,521 Mexico Denmark Netherlands Japan New Zealand 2016: 13,078 Finland Norway Singapore France Sweden Ot Other: Ireland Germany Switzerland Australia

Financial Condition Key Performing Regions Europe United States 2015 2015 Gross Margin: 22.82% Operating Margin: -17% Net Income: $-888.82M Revenue Per Employee: $308,076 2014 2014 Gross Margin: 27.50% Operating Margin: -5.8% Net Income: $-294.04M Revenue Per Employee: $255,570 Registered Tesla’s per Key Performing Products 100 passenger vehicles Model S global sales passed 100,000 in December • 1. California: 1.00 2015 2. Washington: .93 Tesla Sales in Top 5 European Countries 3. DC: .84 Worlds best selling EV in 2015 • 1. Norway: 4,039 4. Hawaii: .52 2. Denmark: 2,736 5. Oregon: .42 As of December 2015, the Model S is the worlds 2 nd 3. Netherlands: 1,891 • best selling EV in history, behind the Nissan Leaf. 6. Connecticut: .40 4. Germany: 1,582 5. Switzerland: 1,556

Class & Industry Comparison High End Market Low End Market Macro Level Trends Employees 1. Increase in technology and Employees Employees Employees Employees Employees 80,000 software 136,941 122,244 344,109 13,000 149,388 2. Increase in regulatory requirements 3. Customers utilizing online Gross Margin Gross Margin Gross Margin Gross Margin Gross Gross Margin shopping 2015 Fiscal Year 22.82% 21.48% 2015 Fiscal Year Margin 18.89% Still Occurring Still Occurring 4. Customers expect seamless 19.89% shopping experience Net Income Net Income Net Income Net Income Net Income N/A Net Income $-888.68M $252.35B $170.76B N/A $65.98B Infant • • Distinguished Distinguished • • Distinguished • Distinguished Stages Distinguished • • Large Market Large Market • • Luxury Market • Luxury Market Expanding • Luxury Market • Share Share Key Takeaways: Tesla is still in its infant stages. Total revenue explains that they are still expanding at a high rate.

Competitive Assessment Advantages Disadvantages Battery supply chain Tesla is building Battery expense Technology leagues ahead of Charging your Tesla takes competition time Supercharging stations Range Anxiety Reputation for building products that “wow” people

Organizational Analysis Senior Level Management Tesla Sales 2012-2016 350,000 300,000 JB Straubel - CT CTO Elon Musk - CE CEO Co-founder of Tesla • 250,000 Oversees technical and • • South African Immigrant engineering design • BA in physics & Business at U Prior to Tesla, JB co-founded • Penn Volacam – an aerospace firm 200,000 • Dropped out of Stanford to BA in energy systems & masters • in energy engineering from start ZIP2, which he later sold Stanford. for 300 million at age 28 150,000 Accomplished Pilot • • Founder of Space X, Paypal, Built an electric Porsche 944 • and chairman of Solar City that held a world EV racing 100,000 record 50,000 0 2012 2013 2014 2015 2016 2017 2018 Model S Model X Model 3 Jason Wheeler – CF CFO Franz von Holzhausen – Se Senior Design Executive De Joined the Tesla team in • November 2015 • Joined Tesla in 2008 Former VP of finance at • • Worked as design director for Google Mazda, GM, and VW BS in Finance from • • Syracuse U grad with a Colorado State University degree in industrial design Model S MBA from Harvard • Model X Model 3 • Designed the Model S and X Frat star at CSU •