Tesla: Future Carsaka the continuing odyssey of Elon Musk

Makes - Past

Roadster - Base price: $109,000

Makes - Present

Model S - Base price: $62,400

Makes - Future

Model X - Base price: ??

Supercharger Stations

Today 2015

Batteries and Components

Collaborating with:● Daimler

○ Smart○ Mercedes○ Freightliner Trucks

● Toyota

Financial Information

History● 2003: founded, incorporated

● 2004: Musk joined as chairman

● 2008: Roadster is released

● 2009: Model S revealed

History, cont.● 2010: IPO

● 2012: Model S deliveries start

● 2013: 2 quarters of profitability!

● The future...

What’s hot?

Special SauceThis guy● Studied

business and physics

● Built and sold Paypal

● Runs SpaceX● Chairman of

Solarcity

Special Sauce pt. 2Elon Musk’s vision● Overall: Shape the human experience on

multiple fronts● With Tesla: Eventually produce electric cars

for the masses

Extra sauce: a $465 million government loan

Story time

Musk v. Fisker

Story 2Tesla Crash Test Marketing● Tesla claims to have the safest vehicle ever

tested in its vehicle segment● 5.4 stars out of 5 based on Tesla’s calculationNHTSA Pushes Back● Not off the scale as Tesla claims● “NHTSA strongly discourages the use of

potentially misleading words such as “perfect, “safest”, “flawless” or “best in class” to describe the star rating received by the vehicle”

Competitors

Mass-market EVs and hybrids● Nissan Leaf● Chevy Volt

Competitors pt. 2

Luxury vehicles● Audi A6● Lexus GS350● etc.

Competitors pt. 3

● BMW i3● GM● VW

Outlook 1Success!● Visionary leader● Established as the electric car company● No baggage

Outlook 2Failure● Incredibly tough industry to disrupt

○ Extremely high startup costs + with low margins○ Very tough to pay off debts

● Cars sold at an expensive price point with low volume○ Tesla has only sold ~16,500 vehicles in their history

● A lot of large well established competition○ Toyota sold ~9.5 million vehicles last year alone