An overview of potential sources of revenue generation for Tesla Motors.

Track I Experience I Travel

Why

• There is currently no Tesla vehicle suitable for track use.

• Going on a leisurely tour in a Tesla is great but what about when you want to have some fun on the track?

• Road cars are not suited for track use. While track cars are suited to the track most cannot be used on the road, requiring transporters to get them to and from the track – headache!

• This is why vehicles like a Porsche GT3 RS are such a great pieces of kit. You can drive it to the track, have fun on the track, and then drive it back home – brilliant!

• Okay, but why can’t I have a Tesla version of a Porsche GT3 RS?

• With fewer moving parts the Tesla should be more reliable and have lower running costs.

• On the track range anxiety will be a non-issue as only a professional racing driver will be able to sustain a stint of more than 1 hour.

• Looking at the current Tesla line-up the Model S P100D has potentially promising track performance.

• Other automotive manufactures have performance divisions, for example BMW has it’s M division and Mercedes has it’s AMG division.

• These divisions are consistently profitable and generate steady cash flow. Aside from revenue generation these units also bolster the brand helping to drive future sales.

• They target a small but lucrative segment of their customer base leveraging existing products to provide low volume, high margin products and services.

• Aside from producing vehicles suited for track use they have Driver Training/Experience programs and Travel offerings.

Example of vehicles suited for track use:

Porsche GT3 RS

BMW M4 GTS

Mercedes-AMG C63 Black Series

Aston Martin Vantage GT8

Approach

• Establish a Tesla performance unit – a Skunk Works of sorts – similar to BMW’s M division, Mercedes AMG division.

• Target a small segment of the customer base with a focus on low volume, high margin products and services.

• This Tesla unit could address three areas:

• Vehicle – produce a small number of track suitable Tesla’s each year.

• Driver Experience – provide a driver experience/training program

• Travel – provide event and lifestyle offerings

• To start the unit could build to order around 25 - 45 track friendly Tesla’s a year.

Vehicle • Starting with a Model S P100D the following are some of the areas that would need to be considered in order for track use

(with a focus on mass reduction):

• Wheels: CFRP/aluminium-composite rims with central locking device.

• Tyres: Semi slick tyres ensuring the vehicle can be used on both the road and track.

• Brakes: Carbon Ceramic brake package.

• Suspension: Carbon fibre components with adjustable springs and dampers

• Body Panels: CFRP (doors, bonnet, trunk, roof)

• Front splitter

• Rear spoiler

• Interior: Stripped down to only essentials

• Roll cage: Behind the front seats

• Seats: Sport bucket seats for passenger and driver

• Harness

• Steering wheel

• Track Chrono App: To store and evaluate lap times.

• Battery Cooling?

• Vehicle performance should rival that of something like a Ferrari F12 TDF, while being far rarer (due to lower production numbers)and more unique thanks to custom detailing packages with each vehicle sporting a unique livery.

Custom livery for each vehicle example:

McLaren P1 GTR

Porsche 911 GT3

Driver Experience/Training

• A Driver Experience/Training program is a no-brainer for revenue generation.

• Porsche, Audi, BWM, Mercedes etc. have such programs where they focus on instructing drivers on driver safety and advanced driving techniques.

• Many people also undertake these programs simply for the fun of it.

• The programs also offer the manufactures the opportunity to engage customers and potential customers and are used as marketing platforms for their latest product and services.

• The program could be open to all and a special version included for all customers of Tesla’s track vehicles.

• There has been talk among Tesla owners looking for such a program. Link

Examples include:

• Porsche Driving Experience: Link

• Pure McLaren Driving Experience: Link

• BMW Driving Experience: Link

• AMG Driving Academy: Link

Travel/Lifestyle • Offering travel/lifestyle experiences to Tesla owners is another source or revenue generation.

• Provides Tesla owners with the opportunity to share their passions with fellow enthusiasts in exclusive environments.

• This could be powering around an iconic race circuit to a VIP experience at an event.

• Examples include:

• Track days

• Driving tours

• Festivals

• Goodwood Festival of Speed: Link

• Special events

• Chantilly Arts & Elegance Richard Mille: Link

• Rallies

• Diamond Rally: Link

• The Supercar Run: Link

• Example programs

• Porsche Travel Club: Link

• Aston Martin: Art of Living: Link

• McLaren: Lifestyle Experience: Link

Compiled by

Gregg Barrett