Tesla

TeslaBy Cody Thomas

History and Objectives

Elon Musk; 2003Innovation; vision of electric automotive advancements Unique advantage

Market ShareTesla < 1.9%Toyota – 15.5%

Tesla’s Numbers (2014)

Over 10,000 employees Revenue: $3.198 Billion Total Equity: $911.7 Million Total Assets: $5.849 Billion Net Income: $-294.0 Million Operating Income: $-186.7 Million

Specs: Model S vs. Prius Plug-in Hybrid

Key Events in the Industry

Blue Ocean Strategy “Open source movement” – 2014 Battery Swap Program/Supercharger Network Closed Loop Battery Recycling Program

90% of lead-acid batteries 60-80% of typical vehicle batteries

Competition Comparisons

Tesla Projected to be profitable in 2020 31,700 cars delivered Risky investment Question Mark Insourcing Fully electric New research and development

(blue ocean) Differentiation

Toyota $17.9 billion annual net profit > 10 million vehicles sold “too late” investment Cash Cow Outsourcing Hybrid Exploitation of current market

(red ocean) Price Competitor

The Future of Tesla Motors

Would I invest? Where are they going/what are they trying to achieve? How can they expand? What will the competition do to keep with new technologies?