Tesla Motors

The Automotive Industry Revolution

 Tesla Motors Revenue & Sales
4.05
Future of Automotive Industry
3.2

“Tesla Motors was founded in 2003 by a group of engineers in Silicon 2.01

Valley who wanted to prove that electric cars could be better than
gasoline powered cars and to make every car electric on the road”
0.413

Mission 2010 2011 2012 2013 2014

To accelerate the world’s transition to sustainable energy
Graph of revenue in Billion USD
Employees Sales by end of 2015= USD 14 Billion
13,058 people on Dec 2015
Story Behind the Logo
Headquarter & Factory  To stress a unique approach of the brand, based on
The Tesla Factory in Fremont, California, United States and 120 service electric vehicles’ breakthrough, and to reflect the idea of
location around the globe. It is one of the world’s most advanced efficient electricity usage. Engineers were eager to prove
automotive factories, containing 5.3 million square feet of manufacturing that electric engines can be powerful and endurable at
and office space. the same time.
 The stylish letter T stands for the name of the company,
Balance Sheet it also contains armor shield frame which makes the
Total Assets USD 8.09 Billion badge looks very modern, attractive and symbolizes high
Total Liabilities USD 6.96 Billion level of reliability and safety driving.
 Every detail of Tesla logo represents style, elegance and
Total Equities USD 1.08 Billion innovations.
 Tesla Motors
Why it is unique?

• No gas, charge at home or free at a Tesla charging station and doesn't pollute
the environment
• Per charge driving 265 Miles, 50% less costly as compare to non-electric vehicles
and no oil changes
• The car smoothly accelerates from 0 to 60 mph in 3.7 seconds, There's no delay
• Tesla's warranty (8 years) is better and longer than everyone's
• Available with optional kids seats for the rear, tesla can seat 7 and very safe
• Less depreciation. Tesla's hold their values better than other luxury cars
• Quiet, the electric motor make very little sound. Tesla is one of the most
aerodynamic product cars ever and has little road or wind noise
• Full recharging takes not more than 2 hours, but Supercharger network provides
convenient and free access to high speed charging, refilling half a charge in as
little as 20 minutes
• Brake pad replacements are less frequent because Tesla's have regenerative
braking
 Elon Musk
The Ambitious Revolutionist
Background Check
|Hefounder,
is not only the founder of Tesla Motors, but also the
CEO and CTO of SpaceX; co-founder, CEO and
product architect of Tesla Motors; co-founder and chairman
of SolarCity, co-chairman of OpenAI; and co-founder
of PayPal and so on.
|Born on June 28, 1971, (45 year old) and is a South African
born Canadian-American business magnate, engineer and
inventor, young entrepreneur and one of America’s youngest
billionaires.
|June 2016, an estimated net worth of USD 12.7 billion, the
83rd wealthiest person in the world.
|Married two wives and has 6 sons
Why Elon is so special?
1. The man has inspired a generation
2. He has made a million, turned that into a billion, and
then turned that into $12.7 billion.
3. Elon Musk is in a unique category not just because of
how superbly he has done in business — from Zip2
to PayPal to Tesla & SpaceX & SolarCity. He’s also a
bit of a cult superhero. Actually, he’s an iconic figure
and quite idolized in several sub-cultures. Space
nuts. Business freaks. Cleantech lovers. Electric car
enthusiasts. Coding nerds. And surely others as well.
4. He’s loved so much not just because of what he’s
achieved, but more how he interacts with the public.
5. Elon Musk is real, thoughtful, cautious, humble,
cares about others and wants to spend his life
helping society, and apart from this when he talks to
a common man, he talks on his level, and remains
“just one of the guys.
 Elon Musk
Words of Wisdom
I like creating things
that have never
been seen before or
even imagined
before
FAILURE is an option
here. If things are not
failing, you are not
innovating enough.
When I was in College, I wanted
to be involved in things that
would change the world. NOW I
AM.
If something is
important enough, you
should try even if the
probable outcome is
FAILURE
Constantly think about
how you could be doing
things better and keep
questioning yourself
 Swot Analysis
Strength, weakness, opportunity & threat
STRENGTHS WEAKNESSES

HIGHLIGHTS!  Leader in electric sports car

 High price – Model X
 Strong & iconic CEO
 High-tech & innovative brand  Long waiting time
Strengths – market leader, iconic CEO,  Using own distribution store  Young corporation – 2003
strong investor/partner  Popular among new gen  Weak after sales support
 Strong investor & partner  Cyber security threat
Weaknesses – high price, long waiting
time << gigafactory
OPPORTUNITIES THREATS
Threats – competitor, emerging
technologies, slow acceptance  Demand from China big
 Slow market acceptance
consumer market
 Competitor from mature car
 Global megatrend
Opportunities – new market, comply  Cultural change – green
company
 Low gas price
with megatrends, government policy energy demand
 Other technologies – fuel cell
 Support by government
& plug in hybrid
policy
4P’s Marketing Mix
How Tesla Motors plan to revolutionize the market
PRICE
Start with
PRODUCT competitive price
Sporty design Model 3 is ranked
Spacious inside no. 5/11 @ $35k
Autonomous 4P’S Cost saving $3k
handling MARKETING yearly
Green energy MIX
EV technologies
PLACE
PROMOTION Online booking &
Heavy usage of social reservation
media & online Own distribution
Zero paper ad
CEO = product face
Customize order
Educate customer,
not press sale
 Strategic Plan Become pioneer of
The master planner - Elon Musk sustainable and
comfortable vehicle

To increase To produce renewable

revenue via better energy vehicle with
Tesla Motors VISION is the company’s marketing concept better driving

front drive system

Big plan Societal Continuous Autonomous
The STRATEGIC MISSIONS are the low cost marketing battery R&D driving
steering system (driver)
Company’s STRATEGIES are the Internet of Things | Smart Partnership | Big Data
internal compartment (passenger) Educate Customer | Technology Driven | Safety
Environmental Friendly | Think Like Owner
Finally, the IMPLEMENTATION
CONCEPTS are the rear drive system

Foot Note: This is not Tesla Motors official strategic plan, it is just our imagination
The Future
What is the future of automotive industry?

 Initially focused was on passive safety: seat belts, padded dashboards, moved on to airbags,
rigorous structural standards for crash-worthiness, requirements for emissions and fuel
economy.
 As urbanization has accelerated. Brown haze, gridlock, and a shortage of parking now: no-drive
days, Europe :low-emission zones to restrict vehicles with internal-combustion engines.
 China :the government has indicated that it favors electric vehicles,
 For automakers, challenging environment, mix of vehicles could collide with regulatory priorities.
 Regulation create new opportunities :automakers are investigating plays across alternative fuels
or investing in wind farms to generate power for electric vehicles.
 The car industry should expect to remain under regulatory scrutiny, and future emissions
standards will probably require to adopt some form of electrified vehicle.
 The end of the internal-combustion engine’s dominance more a matter of “when” than of “if.”
The interplay of those forces will ultimately determine whether range-extended electric vehicles,
battery electric vehicles, or fuel-cell electric vehicles prevail.
The Future
Where is tesla motors in the future?
 Musk foresees the day when Tesla Motors is selling millions of cars a year and is a rival to General Motors
and Toyota.
 When asked about challenging the world’s biggest automakers, he added, “Possibly, it’s not out of the
question.” To get there, Musk said “I think over time if we continue to, if we build great products and we
keep our cost structure competitive, (Tesla will need) many plants…in fact, many auto plants and many Gig
factories, I think, are needed.”
 Tesla `s current problem isn`t outdoing competitors ,but rather that the mass market is resistant to
adopting electric vehicles, this is largely due to the lack of global recharging infrastructure, among other
things.
 Currently the sales for EV`s only account for 0.6% of the total number of vehicles sold worldwide, a
quarter of those sales being tesla vehicles.
 In order for Tesla motors to adopt a market penetration strategy ,they will need the long term support of
other automobiles manufactures in order to incentivize the development of recharging stations.
 In order to support tesla`s vision, it is recommended that they develop cheaper alternatives to enable
tesla to sell to mass market for more attractive &affordable in order to reach broader customer base.
 Ron Baron told Musk that his companies investment was not in Tesla Motors as such, but in Musk himself,
and then added why something like the recent Volkswagen cheating scandal could never happen at a
Musk led company.
The Future
Tesla Motors in South Korea
 It has its own market of electronic vehicles with full support from the
government
 Korea has leading position in lithium battery technologies - LG ,SK
 Government has plans to replace up to 20% of nation`s passenger
vehicles with EV`s by 2020-
 EV industry: Korea has rich experience, HYBRID cars are
commercialized(most actively developed type of EV)
 EV industry is asking the government for early establishment of
charging infrastructure
 Regulations in favor of EV domestic market growth: purchase subsidies,
charger installation support, 8 preferential promotion cities.
 Tesla has a good opportunity to invest in Korean market, however
consumers in South Korea have a strong tendency to purchasing
domestic products(due to price advantage and tax bonus),Hyundai,
Daewoo, Kia.
“The stone age came to an end not
for lack of stones ,and oil age will
come to an end not for lack of oil”
- Saudi Minister
Thank for your good attention!
• AHMAD SHAH NASIRY

• ABDELHAK BOULSANE

• MOHD FADZIL