TESLA MOTORS

GROUP 1

Nayan Trivedi MBA0722

Rahul Singh MBA07211
Shubham Dobiriyal MBA07200
Chethan Rohilla MBA07190
Nikhil Gudadhe MBA07232
Shishir Chandra Verma MBA07242

 HOW WORRIED SHOULD BMW BE?

"Build sports cars, use that money to build an

affordable car and again use that money to
build an even more affordable car"

Model S vs. BMW5 (Exhibit 9)

Prototype Model 3 vs. BMW i3
BMW is planning 20+ electric cars by 2023
 PROFITABILITY &
COMPETITIVE ADVANTAGE
Year Gross Profit Revenue
Operating
Expense
Net
Income Buying equipments very cheaply

BMW profit was 8% while Teslas

2013 196803 966931 214179 -17376

2012 30067 413256 424350 -394283

2011 61595 204242 313083 -252488

was 51%
2010 30731 116744 177569 -146838
Operating expenses came down
to 60%
Increased revenues
HOW DID A VC BACKED FIRM IN SILICON VALLEY OVERCAME THE "MASSIVE
BARRIERS TO ENTRY" AND LAUNCHED A VOLUME-PRODUCED CAR, TRYING TO
CHALLENGE BMW, AUDI AND MERCEDEES.

They Focused on Distruptive Innovation and high-end

enroachment.
With the Launch of Roadster, they targeted the premium audience
and competed directly with Ferrari
They relied heavily on the alliances which allowed them to gain
expertise and infrastructure of other firms.
Instead of independent dealerships like other car manufacturers,
Tesla built its own network of company-owned stores with sales
people on salary rather than on commission.
In marketing its vehicles like the Model S, Tesla stressed speed,
comfort and handling before talking about the low emissions. It
also focused on the potential cost savings from gas and reduced
service and repairs.
HOW CAN TESLA BUILD A BETTER CAR THAN ANY
OTHER CAR PRODUCER HAS EVER PRODUCED AT
HALF THE COST?

Cost efficiency
Evolved powertrain
Rear wheel drive
An improved version of the technology for batteries
NUMMI plant in Fremont, California.
Buying production equipment at discount price.

Features
Highest safety rating.
All glass panaromic sunroof.
Wireless control by software.
17" touchscreen control.
TESLA

WHAT TESLA CAN DO

TO PREVENT
IMITATION ?

Economies Of Scale
Patents
Deliver true cost effectiveness
Improving delivery and charging systems