consumer trends - tesla

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Tesla Motors Eric Baiden-Quayson | Kevin Gaiffe | Guillaume Heuzé | Corey Holloway | Zeya Sun | Fan Wu

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Page 1: Consumer Trends - Tesla

Tesla Motors

Eric Baiden-Quayson | Kevin Gaiffe | Guillaume Heuzé | Corey Holloway | Zeya Sun | Fan Wu

Page 2: Consumer Trends - Tesla

Brand History & Company Overview

Nikola TeslaThe Roadster model uses an

AC motor descended directly from Tesla's original design

History● Founded in 2003 by a group of engineers in

the Silicon Valley - wanted to prove electric cars could be better than gas-powered cars

Image● Disruptive intersection of manufacturing,

innovation and capital experienced by the auto industry, well beyond the realm of traditional auto manufacturing

Value Proposition● Affordable driving as an exhilarating

experience

Page 3: Consumer Trends - Tesla

Elon Musk

Co-Founder of Tesla Motors

● Net Worth: $7.9B● Became CEO of

Tesla in 2008● 32% stake in the

company● First electric sports

car● Brought in Toyota &

Mercedes as investors

● Tech patents shared

● Working on consumer battery pack for home use

● Projected to sell 500K cars by 2020

● Believes Tesla could be worth as much as Apple in 10 years

Page 4: Consumer Trends - Tesla

Current & Future Tesla Models

Roadster $109K

Model S$71K

Model X$69.9K

Model III$35K

Page 5: Consumer Trends - Tesla

Tesla Model S vs. Lamborghini Aventador

Page 6: Consumer Trends - Tesla

Business Model & Financial Information

2014 Overview● Valuation: $25 billion● 32,000 cars sold● 35,000 cars produced● 2014 Turnover: $3.20 billion● Opened first battery swap

station in CA 2015 Outlook

● 10K pre-orders for Model S, 20K for Model X for 2015

● Production goal: 50,000 cars● Model X delivered by 3Q

Page 7: Consumer Trends - Tesla

Issues In Asia● Diminishing returns (in thousands) in

Asia: o 2011: 10162o 2012: 7613 o 2013: 1004

● Customers reluctant to switch to electric vehicles

● China was only 15% of global wholesales● Lack of sufficient refueling infrastructure● Expected combined sales in Europe &

Asia to be double those in N. America● Lack of governmental awareness in

green push in China continues to hurt

● Europe: 82● US: 124● China: 23

China’s uber-rich care more about luxury bells and whistles than having a car that is deeply green

Page 8: Consumer Trends - Tesla

Issues In Asia

● Sold about 120 cars in China in January 2015, well below target

● Imported only 444 units to China in the month of December, down from 747 the month prior

● About 45% of the Model S cars imported to China in 2014 are still unregistered with local authorities.

Page 9: Consumer Trends - Tesla

Rivals & Potential Competitors

Apple Titan BMW i8 LeTV Supercar Fisker Karma Chevy Volt

Page 10: Consumer Trends - Tesla

Gigafactory● Expected cost: $5 billion● Production of electric

batteries ● Adding 6,500 employees● Reducing the cost of

batteries by 30%● Eventually churn out

enough batteries for 500,000 vehicles

● The factory would produce 50 GWh

Page 11: Consumer Trends - Tesla

Tesla Gigafactory

Already spent an estimated $53.1 million on construction

Expected production to surpass 500,000 by 2020

Page 12: Consumer Trends - Tesla

Employees & Recruitment

Arnnon Geshuri, President of HR

● Tesla has seen a dramatic increase in number of employees over the last several years

● This development thank in large part to Arnnon Geshuri, former president of recruitment for Google.

● On the official Tesla website, many full-time job offers can be found.

184 offers at HQ (Palo Alto, CA)

Page 13: Consumer Trends - Tesla

The Future of Tesla

● No expected profit until 2020, when annual sales will reach 500,000

● They will sell “a few million cars” by 2025● Considerable speculation among industry

experts that Apple will buy Tesla or develop their own vehicle(s) ○ $75 billion in less than 18 months ○ 100+ former Apple employees○ Co-branding opportunities

Page 14: Consumer Trends - Tesla

Supercharging Milestones

● Largest fast-charging network on the planet

○ 20 mins. - Model S: charge 50% of the battery

○ 40 mins. - full charge

● Free charging service○ Conveniently

located○ 384 worldwide

● Strategic technology○ Spread costs,

open quickly

Page 15: Consumer Trends - Tesla

Mileage & Charge Duration

Page 16: Consumer Trends - Tesla

Supercharger Stations

North America

Asia-Pacific

Page 17: Consumer Trends - Tesla

Patents & Technology Sharing

From Elon Musk:

Tesla has "several hundred" patents related to all areas of its electric vehicles, including batteries and electric control systems

Tesla isn't worried a competitor could use patents to undercut the company

Tesla's patents for its vehicle supercharging stations could be shared with other automakers, which could help spread costs and more quickly open more stations

Page 18: Consumer Trends - Tesla

Additional Ventures

Providing electric powertrain components to Daimler, Mercedes & Toyota

They are strategic partners and competitors Motivation for these ventures:● Bring additional revenue● Make electric cars affordable

Page 19: Consumer Trends - Tesla

With Toyota

● Completed development services for the Toyota RAV E4 in early 2012

● Entered into a powertrain component sales agreement with Toyota for RAV E4

● Supplying electric powertrain systems (including the battery, charging system, inverter, motor, gearbox and associated software

Page 20: Consumer Trends - Tesla

Marketing/Digital Strategy ● Tesla has a very small marketing team● Spends significantly less on

advertisements compared to traditional car dealerships (brick-and-mortar spaces advertise the company in luxury malls and areas)

● Brand name is mostly promoted through curious journalists, consumers and word of mouth communication (through social media)

● Lastly, Tesla avoids the high cost of traditional advertising

Page 21: Consumer Trends - Tesla

Social Media PresenceFacebook: Nearly 800K likes and 20K people talking about brand daily

● Receives the most content and consumer interaction

Twitter: The brand has 490K followers and only follows 278 individuals

● Promote consumer awareness

Instagram: 109K followers and follows 0 individuals● Focus on the functionality of new products and the

stunning visuals of the productsOverall, social media strategy is to engage, inform and excite their current and potential customers

Page 22: Consumer Trends - Tesla

Smartphone Application

Tesla Motors App: allows for the customer to visually see their vehicle charge in real-time (consumers can start or stop charging from app)

- Essentially consumers can virtually work majority of the vehicle functions from the app (heating and cooling system, sunroof functions, lock or unlock from a far, etc.)

- App complaints consistent of infrequent glitches

- Overall, 10,000 downloads via Google Play and consumers rate Tesla Model S Beta app 4.5/5

Page 23: Consumer Trends - Tesla

Geographical & Product Expansion

● Geographically expanding their manufacturing production footprint in Tilburg and the Netherlands

● In 2020, Telsa’s gigafactory in Nevada is set to produce the more lithium ion cells than all of the worlds combined output in 2013

● Model X will be launched in 2015 for volume production

Page 24: Consumer Trends - Tesla

Our Visit to Tesla in Geneva

Thank You!Any Questions?