Tesla Motors Investor Presentation

Spring 2012
Copyright 2012 Tesla Motors, Inc.

Forward-Looking Statements
Certain statements in this presentation, including statements relating to the development, testing,
performance, pricing, attributes, schedule of development, launch, and volume expectations of Model S,
Model X and Gen III; the ability to achieve revenue, gross margin, spending and profitability targets; the
ability of Tesla to produce vehicles at its factory; the products and schedules related to, and the financial
results expected from, Teslas development programs with Daimler and Toyota; the sufficiency of current
available funds to develop Model S and Model X; and the ability of Tesla to execute on its new interactive
retail strategy and future store opening plans are forward-looking statements that are subject to risks and
uncertainties. These forward-looking statements are based on managements current expectations, and as
a result of certain risks and uncertainties, actual results may differ materially from those projected.
The following important factors, without limitation, could cause actual results to differ materially from those
in the forward-looking statements: market acceptance of electric vehicles in general and new Tesla vehicle
models, specifically Model S and Model X; delays in the design, manufacture, launch and financing of
Model S, including the build-out of its manufacturing facility; the risk associated with a decline in revenues
prior to the launch of Model S; achieving expected results from powertrain systems; competition in the
automotive market; Teslas ability to establish, maintain and strengthen the Tesla brand; the unavailability,
reduction or elimination of governmental and economic incentives for electric vehicles; Teslas ability to
execute on its plans for its new interactive retail strategy and for new store openings as well as the risks
and uncertainties identified under the sections captioned Risk Factors and MD&A in its Form 10-K filed
on February 27, 2012. Tesla disclaims any obligation to update information contained in these forwardlooking statements.

Copyright 2012 Tesla Motors, Inc.

Progress Timeline

Foundation for
Success

Past Success
Enables our Future

Copyright 2012 Tesla Motors, Inc.

Focused Value
Creation

Lead the
Way Forward

Past Success Enables our Future

Electric Vehicle
Intellectual Property

Roadster
Success

Range Leader
(single charge)

Branded Tesla as EV
leader

Cost Leader
(battery pack)

Safety & reliability

validated

Proven battery pack

safety, reliability and life

Proved EV driving could

be exciting & preferable

Platform For
Growth

Partnerships
Investments from
Daimler, Toyota &
Panasonic
(10% combined)

Tesla-owned stores &

service centers
Tesla Factory

Sales to Daimler &

Toyota validates our
technology

World Class Tech & Auto Management Team

Copyright 2012 Tesla Motors, Inc.

Progress Timeline

Foundation for
Success

Past Success
Enables our Future

Copyright 2012 Tesla Motors, Inc.

Focused Value
Creation

Deliver an Exceptional
Model S by July 2012

Lead the
Way Forward

Model S Better By Design

Battery
Pack

Powertrain

Copyright 2012 Tesla Motors, Inc.

Model S Redefines the Premium Sedan

Designed to be a better vehicle from the ground up
Harnessing ALL the benefits of an EV approach

Copyright 2012 Tesla Motors, Inc.

Model S Redefines the Premium Sedan

Stunning Interior

Seats 5 Adults + 2 Children

Storage Front & Back
17 Touchscreen Console

Copyright 2012 Tesla Motors, Inc.

Model S Redefines the Premium Sedan

Leading Performance & Handling

Copyright 2012 Tesla Motors, Inc.

060mph in 4.4 seconds (Performance Model)

Low Cg + High Torsional Rigidity
Smooth & Quiet

Model S Redefines the Premium Sedan

Goal: 5 Star Safety Rating

Copyright 2012 Tesla Motors, Inc.

Superior Frontal Crumple Zones

Minimal Side Impact Intrusion
Alum. Body = Strong & Lightweight

Model S Redefines the Premium Sedan

Improved Reliability

Copyright 2012 Tesla Motors, Inc.

Fewer Moving Parts &

Modular Design
= Service That Comes to You
No Oil Changes
Longer Brake Life

Model S Redefines the Premium Sedan

Lower Operating Cost

Saves $2,000*/yr in Fuel Cost

No Oil Changes
* - Operating Cost Assumptions
300 mi. range Model S operating cost is 3.3
cents/mi. (based on DoE Natl. avg. elec. cost of
11.8 cents/kWh )
Sports sedan operating cost is $0.20
(based on $4/gal gasoline / 20mpg = 20
cents/mi.)
($0.20 - $0.033) x 12,000 miles/yr = $2,000 /yr.

Copyright 2012 Tesla Motors, Inc.

Model S Redefines the Premium Sedan

More Efficient = Eco-friendly

Copyright 2012 Tesla Motors, Inc.

Significantly More Efficient than

Gasoline Power
Zero Tailpipe Emissions
Recyclable Battery Pack

Model X A New Vehicle Category

Functionality, Style & Performance
Worlds First 2-Motor All Wheel Drive
Over 500 Reservations in 24 Hours

Tesla Motors Model X

Copyright 2012 Tesla Motors, Inc.

Falcon Wing Doors Deployed

Progress Timeline

Foundation for
Success

Past Success
Enables our Future

Copyright 2012 Tesla Motors, Inc.

Focused Value
Creation

Deliver an Exceptional
Model S by July

Demonstrate
Economic Potential

Lead the
Way Forward

Demonstrate Economic Potential

Long Term Growth Targets
Global
Segment
Mkt. Share*

Year

Vehicles

Vehicle
Units

2012

Roadster & S

5,300+

< 1%

2013

Model S

20,000

1%

2014

S and X

30,000+

2%

Future

Lower Priced Third Generation Platform

Long Term Operating Margins Targets

Gross Margin
Operating Margin

25%
Low Mid teens %
Historical Plant Capacity Exceeded 400,000
Vehicles per Year!

Copyright 2012 Tesla Motors, Inc.

* - similar vehicles including

Mercedes E-Class, BMW 5
Series, Audi A6, Porsche
Cayenne, Land Rover, Audi Q7

Reservations Show Strong Demand

Cumulative
Model S Reservations

9,000

U.S. Signature Series Sold Out in Q411

8,000

7,000

6,000

5,000

4,000

3,000

2,000

1,000

Q1 09

Q2 09

Q3 09

Q4 09

Q1 10

Q2 10

Q3 10

Q4 10

Q1 11

Q2 11

Minimum $5,000 refundable reservation price

Limited marketing effort
Copyright 2012 Tesla Motors, Inc.

Q3 11

Q4 11

Sufficient Liquidity to Reach Our Goals

$493M of Total Liquidity
As of 12/31/11

Remaining
DoE Facility
$189M
Cash &
Restricted Cash
$304M

Sufficient liquidity to reach profitability

Copyright 2012 Tesla Motors, Inc.

Progress Timeline

Focused Value
Creation

Lead the
Way Forward

Deliver an Exceptional
Model S by July

Tesla: Built to Win

Demonstrate
Economic Potential

Foundation for
Success

Past Success
Enables our Future

Copyright 2012 Tesla Motors, Inc.

Electric Powertrain - Leadership on Range & Cost

Tesla Leads on Range (maximum miles per single charge)
Tesla Model S *+

300

Tesla Roadster +

245

Ford Focus

76

Nissan Leaf

73

Chevy Volt

* - Estimated
+ - EPA 2-cycle city/highway test
- EPA derived 5-cycle test

35

Tesla Leads on Cost (battery pack cost $/kWh)

$700

$650+

$600
$500
$400
[1]

Cost Survey: Roland Berger Study

LiB Value Chain and Cost Model (March
2011)

[2] Tesla Model S Projected cost not

disclosed. Includes all cells, electronics,
packaging and labor costs

$345

[2]

2020 [1]

Tesla Model S

$300
$200
$100
$2010 [1]

Copyright 2012 Tesla Motors, Inc.

Tesla Powertrain Proprietary from End-to-End

Integration = A System that is Greater than Sum-of-the-Parts

18650 Cells

Battery Pack

Power Electronics

Motor

Gear Box

Intellectual Property and Patent Protection Throughout

Unique Chemistry
Proprietary Cathode
Geometry
Automotive-Grade
Construction
Passive Safety
Features
Modified Cell Case

High Energy Density

Active Cooling
Mfg Trade Secrets
Charge Balancing
Active Safety Features

Power Mgmt Software

2 Way Inverter
Charge Mgmt Software
On Board Charger
Flux Phasing & Mgmt
Compact Design
Thermal Mgmt Software

Instant Peak Torque

A/C Induction Motor
No Rare Earth
Metals
87% Avg Efficiency
In House Mfg

Over 50 Patents Awarded

Over 230 Patent Applications Pending
Copyright 2012 Tesla Motors, Inc.

Proprietary Design
Up to 18,000 RPM
No Shifting
In House Mfg

EV Powertrain Business World Leader

Worlds Largest Vendor of EV Powertrains
Toyota RAV4 EV Available 2012

Providing full powertrain under multi-year agreement

Expanding Relationship with Mercedes-Benz

Copyright 2012 Tesla Motors, Inc.

Successful Smart fortwo and A-Class programs

Starting development program for a new M-B vehicle
with a full Tesla powertrain

EV Platform = Rapid, Low-Cost Development

Model S

Model X

Common
Powertrain

Fewer Parts

Revolutionary
Packaging

No Transmission

Adaptable
Chassis Platform

No Emissions
Control Systems

Leveraging the unique benefits of the electric powertrain

Copyright 2012 Tesla Motors, Inc.

High Product Refresh Rate

Shipping since 2008
Over 2,100 sold in over 30 countries
Over 20 million miles driven

Modified
Lotus Elise
Platform

Tesla Roadster

Available by July 2012* - Release Candidate phase in progress

20,000 units per year, pricing starting at $49,900*
Worlds first, production intent all-EV vehicle

Teslas
S Platform

Tesla Model S

Production begins late 2013/Deliveries early 2014*

10,000 15,000 units per year*
Based on Model S platform
Tesla Model X

Smaller vehicle platform; pricing starting at $30,000*

Positioned for mass-premium market appeal and volume
Availability TBD
Tesla Gen III
* - Estimated dates, volumes & pricing (net of US tax credit of $7,500 for purchase of alt. fuel vehicles; credit may expire)
Copyright 2012 Tesla Motors, Inc.

Teslas
Gen III
Platform

Fremont Facility Room for Significant Growth

Offices

Paint Shop

5 million ft2 / 200+ acres

400,000+ unit historical
capacity

Final Assembly

$42MM purchase price

Equipment purchased at
attractive prices

Body In White
Plastics
Press Shop
Material Handling

Tesla Factory
Fremont, CA
Planned Model S Facilities

Copyright 2012 Tesla Motors, Inc.

Future Programs

Agile Manufacturing Latest Technology

Body Assembly Center

Model S & Paint Center

Press Center

Model S on Automated
Guided Vehicle
Indoor Test Track
Copyright 2012 Tesla Motors, Inc.

Plastics Injection Molding

Tesla-Owned Distribution & Service

Manage the entire customer experience; Accelerate time to market

Sales at retail price; Lower costs of facilities, inventory & service

2011: 20 Stores 2012: 30 stores 2013: 50 stores

(store totals exclude additional service centers)

Existing
Copyright 2012 Tesla Motors, Inc.

Planned

Better Customer Experience

Storefront

Stores designed to:

Engage
Excite
Inform
Interior

Test Drive Cars

Transparent and
inviting
Affluent, high-traffic
locations
Technology that
informs customers

Product Specialists
to answer questions
Display vehicles open
for customers to sit in
Copyright 2012 Tesla Motors, Inc.

Conveniently located
parking area for test-drives
and Tesla vehicle charging

Summary

Focused Value
Creation

Lead the
Way Forward

Deliver an Exceptional
Model S by July

Tesla: Built to Win

Demonstrate
Economic Potential

Foundation for
Success

Past Success
Enables our Future

Copyright 2012 Tesla Motors, Inc.