...Child for Green Mobility NeXt Up! www.nextupresearch.com With over 1063 Roadsters sold, Tesla, in our view, is the first to achieve commercial scale in sale of high performance electric cars. Our model assumes only sales of 4200 Model S (to be launched in 2012) cars even in 2015, which could prove conservative given Tesla‟s expectations for 20k cars a year. We note that Tesla has booked over 2200 orders for Model S. We expect the NUMMI plant (with a theoretical capacity of 400k cars) in Fremont to give the company ability to expand production at low capital cost. We expect Daimler and Toyota to provide for high recurring revenues in terms of powertrain sales. Unlike many of its competitors, Tesla has developed its own battery pack. We note that battery packs account for 30 – 40% of a car‟s cost, offering Tesla significant advantages as it scales. The company should be able to offer multiple models (such as SUV, minivans, sedans) based off the same platform without having to make significant R&D investment. June 29, 2010 Our valuation of $1.74 - $1.88B reflects stronger OEM sales offset by weaker Roadster revenues. Our revised per share price of $17.01 to $18.37 reflects the recent 3 to 1 reverse stock split and additional shares from the public offering. We note that the IPO (on 6/29/10) is priced at $17 per share. Investment Concerns The cost of ownership for Tesla Roadster is significantly higher than for comparable alternatives such as Porsche 911. We are concerned...
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...Executive Summary Tesla Motors started with the objective of facilitating the growth of the electric car by making compelling vehicles first began with the Roadster, a solely electric operated sports car to complete with high performance supercars to prove that electric technology was viable and an electric car didn’t have to be boring.Tesla then expanded its technological advantage to the luxury sedan market. The Model S, a zero emission and sustainable luxury sedan, was then introduced as their second electric car in 2012 to compete in the performance luxury sedan segment. The Model S won numerous awards. Tesla Motor is aiming to make the electric car mainstream and build Tesla Motors as a brand. Thus Tesla is the only automaker that sells zero-emission sports car in serial production at present. This report will cover marketing plan for Model S electric car in Canadian market focusing Vancouver area. As per survey data, it appears Tesla have recently opened their 2nd Canadian store in Vancouver in May 2014. The first Canadian store was opened in Toronto in Nov 2012. The growth strategy for Vancouver area will be market penetration. Tesla’s goal is to accelerate the world’s transition from gasoline powered vehicles to electric mobility with increasingly affordable electric cars. To achieve this goal, Tesla have following current strategies; * Business level Strategy: A focused differentiation strategy because their customers are mainly from middle and upper...
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...International Expansion Report Tesla Motors, Inc. November 21, 2011 Rio Consulting Group Michael Dawes James Hadel Daniel Ma Simon Qin International Expansion Report | Tesla Motors, Incorporated | Rio Consulting Group Executive Summary Founded in 2003, Tesla strives to design, develop, manufacture and sell high-performance fully electric vehicles and advanced electric vehicle powertrain components. Currently, Tesla’s presence internationally is limited to dealerships in Europe and a minor production plant in Britain. In order to be best positioned moving forward, we recommend expanding into Latin America and Asia Pacific to better fulfill CEO Elon Musk’s primary goal to commercialize electric vehicles all the way to mass market. As we predict slow growth for the standard auto industry, we believe the electric vehicle industry is extremely attractive for several reasons, including high oil prices, less greenhouse gas emissions and government incentives. Our best estimates suggest the electric vehicle industry will have average growth rates of 35 – 40% over the next 10 years. International expansion, if done correctly, can help improve upon Tesla’s current strategic position in order to become the global leader in electric vehicles. We have determined that the optimal points of entry for the market are in Brazil and Singapore. In addition to gained access to the two fastest growing regions in the segment, the two locations are attractive for many political, economic,...
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