TESLA INVESTMENT BUSINESS

PLAN

By: Uju Eze (133595215)

AJAY Rana Bhat (162166219)
Micail Muzaffar Ahmad (117826206)
Joyel George Mathew (128649217)

Seneca College
MKM 704: Financial Aspects of Marketing
Professor Rob Persiko
31/03/2023
 AGENDA

 Problem Statement
 Solution
 Market Opportunity
 Value Proposition
 Business Model
 Traction and Validation
 Market expansion and Growth Strategy
 Financial Performance
 Budget Proposal
MISSION STATEMENT “To accelerate the world’s transition to
sustainable energy.”
 PROBLEM STATEMENT

•Traditional Recreational Vehicles (RV) are bulky and difficult to manoeuvre, limiting their use in
urban areas or on narrow roads. They rely on fossil fuels and typically have low fuel efficiency,
making them expensive to operate and damaging to the environment. There is a need for a
sustainable and innovative recreational vehicle that addresses these issues and provides a more
enjoyable and eco-friendly travel experience. Tesla's expertise in electric vehicle technology and
sustainability makes it well-positioned to address this need and create a new category of electric
RVs that offer superior performance and a more sustainable travel experience.
•
 SOLUTION

Tesla's electric RV would be designed to be sustainable, using renewable

energy sources and minimizing waste.
The RV would be would be a more eco-friendly alternative to traditional fossil
fuel-powered RVs, with lower operating costs and reduced environmental
impact.
Its advanced battery technology would provide a longer range, eliminating the
need for frequent refuelling stops.
Their smart home features would offer a more comfortable and convenient
travel experience, and the autonomous driving capabilities would provide a
safer and more relaxing travel experience.
Tesla's electric RV would revolutionize the RV industry and offer a superior
travel experience for environmentally-conscious consumers.

 MARKET OPPORTUNITY

 RVs are a popular way for people to Tesla RV could offer luxury amenities
travel and explore the country, and such as high-end finishes, state-of-the-
there is a growing trend towards art technology, and premium
electric vehicles. Tesla has already entertainment systems to people who
established a strong brand in the enjoy RV’s but want a high-end
electric vehicle market, and a Tesla experience. This market could be
RV could be a natural extension of particularly interested in a Tesla RV
that brand. because of the brand's association with
luxury and innovation.
 Tesla RV would appeal to people
who enjoy camping, hiking, and
other outdoor activities often use
RVs as a way to travel and explore
because it would be
environmentally friendly and
quiet, which is important when
camping or hiking.
VALUE PROPOSITION

Tesla’s luxury designed RV’s are committed

to sustainability and manufactured with
renewable energy sources to minimize
waste. It is equipped with advanced battery
levels to provide longer lasting and faster
charging capabilities. Its autonomous driving
technology and smart home features such as;
voice activated controls, automated climate
controls and integrated entertainment
systems are guaranteed to offer a more
relaxing and enjoyable travel experience, as
well as increased safety.
 Sale of the RV
Accessories and add-ons
Charging services
Revenue Streams Software updates
Maintenance and repair services
Partnerships with RV parks

Focus on capturing value from

innovative and sustainable
technology
Pricing Strategy Premium pricing, emphasizing BUSINESS
MODEL
long-term cost savings
Financing and leasing options

Production and manufacturing

costs
Materials, labor, and overhead
costs
Cost Structure Unique costs for battery and
charging technology
Marketing and distribution
expenses
 • Sales volume: Calculate the quantity of RVs sold to assess market demand.
• Market Share: Track Tesla's market position in the RV sector to determine
whether it has successfully tapped into the market.
• Customer satisfaction: To determine how well the RV satisfies customers' wants
and expectations, evaluate customer feedback.
• Charging network: To show dedication to the RV market and serve enthusiasts,
expand the charging network to support RV charging requirements.
TRACTION AND • Product innovation: To retain market traction and compete, the RV product must
be constantly improved and innovative.
VALIDATION • Partnerships: Establish agreements with campgrounds and RV parks to provide
charging and other amenities to promote adoption and show market validity.
• Revenue growth: By demonstrating an increase in revenue sources from RV
sales, charging services, and maintenance and repair services, the RV endeavour
can be shown to be profitable and successful.
 MARKET EXPANSION AND GROWTH
STRATEGY

Digital Marketing: Physical showrooms: Trade events: Attend Influencer marketing: Referral Program: Partnerships with RV Options for Financing
Use social media and Modify existing trade events for the To promote the RV, Encourage current Parks: Offer charging and Leasing: Provide
internet presence to showrooms physically RV sector to spark team up with well- customers to stations and other financing and leasing
reach potential to display the RV to interest. known RV writers and recommend new benefits by forming alternatives to
customers with digital prospective buyers. vloggers. customers to the RV alliances with increase accessibility
marketing. with the help of a campgrounds and RV of the RV.
referral programme. parks.

Due to the rise in demand for
electric vehicles over the past
Overview:
five years, Tesla has seen
substantial revenue growth.
However, this increase in
revenue has also been
accompanied by higher costs,
especially in capital
expenditures and research and
development.

Compared to $24.6 billion in

As a consequence, Tesla's net 2019, $21.5 billion in 2018,
income has fluctuated, $11.8 billion in 2017, and $7
Revenue:
showing profits and losses in billion in 2016, Tesla's overall
different years. revenue in 2020 was $31.5
billion.

Over the past five years,

The rise in demand for Tesla's Tesla's costs have also
electric vehicles, especially the significantly increased,
Expenses:
Model 3, is what has caused especially in the areas of
this increase in revenue. capital expenditures and
research and development.

FINANCIAL PERFORMANCE
These investments are
Tesla invested $3.2 billion in
intended to advance
capital spending and $1.4
technology, increase Profitability:
billion in research and
production capability, and
development in 2020.
create new products.

Over the past five years, Tesla reported net losses of

Tesla recorded a net income of
Tesla's net revenue has $976 million in 2018, $1.96
$721 million in 2020 as
fluctuated, showing losses in billion in 2017, and $675
opposed to a net loss of $862
some years and profits in million in 2016 over the prior
million the previous year.
others. three years.

Tesla's stock price has

increased dramatically over
the last five years despite the
The share price of Tesla rose
company's inconsistent
Performance of Stocks: from about $45 in 2016 to
profitability, thanks to investor
more than $700 in 2020.
confidence in its ability to
expand and dominate the
 BUDGET PROPOSAL

$5,0000.000 $100,0000.000 $10,0000.000 $10,0000.000

Research and Support and

Production Sales and Marketing
Development Distribution
THANK YOU

uceze@myseneca.ca
Abhat2@myseneca.ca
mmahmed11@myseneca.ca
jgeorge-mathew@myseneca.ca