Tesla Motors: Name: Robin Gupta IAP Roll No. 71

Name: Robin Gupta
IAP roll no. 71
Tesla Motors
INTRODUCTION:
Tesla Motors, Inc. is an American automotive and energy storage company that
designs, manufactures, and sells electric cars, electric vehicle powertrain
components, and battery products. Tesla Motors is a public company that trades
on the NASDAQ stock exchange under the symbol TSLA.
Tesla Motors is named after electrical engineer and physicist Nikola Tesla. Elon
Musk is the chairman of the board of directors, CEO and Product Architect of
Tesla; also the founder, CEO and CTO of SpaceX.
Tesla gained widespread attention following their production of the Tesla
Roadster, the first fully electric sports car. The company's second vehicle is the
Model S, a fully electric luxury sedan, and its next two vehicles are the Models X
and 3.
The S.W.O.T. Analysis

Strengths
1. First to market with luxury electric car model, well ahead of competition.
2. Widely recognizable brand, due to both marketing efforts as well as the
visual appeal of the companys offerings.
3. Growing public movement towards sustainable vehicles indicates longterm market segment growth and a potentially limitless market cap.
4. Patents on most of the drivetrain and battery technologies utilized in their
cars, allowing Tesla to remain well ahead of competitors.
Weaknesses
1. Public controversies, pending lawsuits, and recall issues have continued to
nag the company since its inception.
2. Research and material development costs for these technologies remain
expensive
Opportunities
1. As technology develops, new models from Tesla that could be priced lower
at the lot could appeal to a much broader swath of car buyers,
domestically and internationally.
2. International market remains largely untapped; with Western Europes
focus on sustainable energy
Threats
1. Competition in the field; established luxury auto heavyweights like BMW,
Mercedes, and Lexus expected to join the league soon.
2. Lawsuits and recalls could limit income and inhibit new research and
material development; both are essential to Tesla remaining ahead of the
field
CORE BUSINESS IDEA

Tesla wants to accelerate the advent of sustainable transport by bringing
compelling mass market electric cars to market as soon as possible. They could
have done that with there first product but that was simply impossible to achieve
for a startup company that had never built a car and that had one technology
iteration and no economies of scale. There first product was going to be
expensive no matter what it looked like, so they decided to build a sports car, as
that seemed like it had the best chance of being competitive with its gasoline
alternatives.
The startups business plan had three steps. First, develop a high-end, highperformance sports car to prove that electric vehicles were both cool and
feasible. Second, roll out a luxury sedan that would compete with high-end
brands like BMW and Mercedes. Third, produce hundreds of thousands of lowcost electric vehicles for the masses.
Expansion Plans(Geographies, Business)

The company is expanding its manufacturing footprint into other areas, including
in Tilburg, the Netherlands, where it has an assembly facility, and Lathrop,
California, where it has a specialized production plant. To reduce the costs of
lithium ion battery packs, Tesla and key strategic partners including Panasonic
have begun construction of a gigafactory in Nevada that will facilitate the
production of a mass-market affordable vehicle, Model 3. By 2020, the
gigafactory will produce more lithium ion cells than all of the worlds combined
output in 2013. The gigafactory will also produce battery packs intended for use
in stationary storage, helping to improve robustness of the electrical grid, reduce
energy costs for businesses and residences, and provide a backup supply of
power.
BUSINESS MODEL
Business model of tesla motors can be illustrated by the following points:
1)make electric cars that rich guys will want to buy.
2) disrupt the business model of other dealers
3) illustrate how awesome electric cars are to other auto manufacturers

4) spend a boatload of money to prove that electrons are better than
hydrocarbons
5) reduce dependence on hydrocarbons as an energy source
5) reduce the amount of greenhouse gasses in the atmosphere .
6) make the world understand that the problem is energy storage, not
energy generation.
7) most important profit
Talking about the sales Tesla operates stores or galleries usually located in
shopping malls in 22 U.S. states and Washington DC. The stores act as
showrooms that allow people to learn more about Tesla Motors and its
vehicles.Tesla has a strategy of direct customer sales and having its own stores
and service centers is a significant departure from the standard dealership model
currently dominating the U.S. vehicle marketplace. It is the only automaker that
sells cars directly to consumers.
LEADERSHIP:
Founders: Martin Eberhard, Marc Tarpenning, Elon Musk , JB Straubel, Ian Wright.
Key people : Elon Musk (Chairman and CEO) , JB Straubel (CTO) ,Deepak Ahuja
(CFO),Jay Vijayan (CIO).
STP :
Segment :People looking for electric premium sports/luxury cars and people
aware about the sustainable environment.
Target Group : Rich and Affluent people who are willing to spend more compared
to other vehicles
Positioning: Pure electric drive but still sporty & luxurious so that it can be placed
in all the segments.
Promotion Campaigns:
Tesla does not spend millions of dollars in a traditional ad campaign. They let us
discuss it, rave about it, hate on it, or rejoice in the spirit of going electric in a
Tesla, be the catalyst to a viral and brilliant marketing campaign. At the end of
the day, Tesla advertising is free.
In my opinion, its almost there but its not as innovative as I would expect from
Tesla.
Although Tesla Motors has no advertising department, nor an ad team, and

certainly, no Chief Marketing Officer (CMO) and the stores are their advertising.
They are very confident about selling 20,000-plus cars a yearwithout paid
advertising. They do not certainly feel that is crucial for sales right now.
Investors:
Tesla Motors was incorporated in July 2003 by Martin Eberhard and Marc
Tarpenning, who financed the company until the Series A round of funding. In
2004 Musk led the Series A round of investment joining Tesla's Board of
Directors as its Chairman. Musk's Series A round included Compass Technology
Partners and SDL Ventures, as well as many private investors. Series B,
investment round added Valor Equity Partners to the funding team. In 2006 ,
Series C round included investment from prominent entrepreneurs including
Google co-founders Sergey Brin & Larry Page, former eBay President
Jeff Skoll, Hyatt heir Nick Pritzker and added the VC firms Draper Fisher
Jurvetson, Capricorn Management and The Bay Area Equity Fund managed by
JPMorgan Chase.In May 2007, The fourth round in added another US$45 million
and brought the total investments to over US$105 million through private
financing.
In May , 2009, Germany's Daimler AG, acquired an equity stake of less than 10%
of Tesla for a reported US$50 million and In, 2010, Tesla announced a "strategic
partnership" with Toyota, which agreed to purchase US$50 million in Tesla
common stock .
On June 29, 2010, Tesla Motors launched its initial public offering on NASDAQ.
13,300,000 shares of common stock were issued to the public at a price of
$17.00 per share. The IPO raised US$226 million for the company.
Accolades Achieved by the TESLA:

2012:
1. TIME Best invention of the year.
2. Swedish energy renewable award.
3. C-NET car of the year
2013:
1.
2.
3.
4.
2014:
Readers choice of the car award.

Motor trend car of the year award.
Most stylish car in Switzerland.
Tesla motors received coveted international award.
1. Model-S car of the year award in norway.

2. Media Post most loved car.
And many more
Problems that will be faced by tesla in future:
Given that Teslas current production is only around 25,000 vehicles for 2013
with goals of doubling this by 2015, there is still a substantial gap between the
number of batteries they will produce and the number of vehicles they will
produce. This means they need to become the go-to supplier of electric vehicles
for all the other car manufacturers. This is where their decision to not pursue
patent infringement comes into play. It is in Teslas best interest if more vehicle
manufacturers produce electric vehicles, it supports both their objective of
converting everyone away from fossil fuel but it also helps them grow their
bottom line through on-going battery sales. While it is true that none of the car
manufacturers need to buy batteries through Tesla, Tesla will have the most
innovative, low-cost, environmental batteries around in quantities large enough
to supplier other manufacturers and so the logical thing for many companies to
do will be to buy from Tesla.
Conclusion:
I am excited about what the future holds with companies like Tesla Motors on the
scene. I hope that by the time there will be an electric car in every drive way.
It is up to each of us to help create a better world for our children and

grandchildren. The future is only as bright as we make it and the future is now.
We can either continue to live in the past or we can evolve into our destiny as
wise humans. The earths population is not getting smaller and we need to come
up with common sense solutions that are sustainable. Elon Musk and Tesla
Motor's are doing just that.
Accidents happen and Tesla has proven it's safety and efficacy time and time
again.
Keep doing Elon Musk, the world needs more people like you!

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Tesla Motors: Name: Robin Gupta IAP Roll No. 71

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Name: Robin Gupta

IAP roll no. 71

The S.W.O.T. Analysis

CORE BUSINESS IDEA

Expansion Plans(Geographies, Business)

3) illustrate how awesome electric cars are to other auto manufacturers

Although Tesla Motors has no advertising department, nor an ad team, and

Accolades Achieved by the TESLA:

Readers choice of the car award.

1. Model-S car of the year award in norway.

Problems that will be faced by tesla in future:

It is up to each of us to help create a better world for our children and

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