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Founded in 2003 Martin Eberhard and Marc Tarpenning , after GM destroyed prototypes of its electric vehicle

Elon musk provided initial capital support worth 7.5m$ after sellin PayPal to Ebay in November 2004

idea is to create effective electric cars which uses renewable energy and sell it to masses

Value Propositions of tesla

Best in class – Fully electric vehicles (EVs)

Some of the EV models and their market availability are:

Model S (Luxury sedan) – June 2012

Model X (SUV) – September 2015

Model 3 (Lower priced sedan for the mass market) – July 2017

Model Y (Compact Crossover) – expected to deliver in 2020

Semi-Truck (Commercial Heavy-duty truck) – expected to deliver in 2020-21

Tesla Pickup Truck – expected to deliver in 2020-21

Tesla Roadster (Sports car) – Original model was in production from 2008-2012. A newer version is expected to deliver in 2020.

Advanced Electric Vehicle Technology

Supercharging and destination recharging station network

High miles per charge

All wheel drives

Dual motor

Free or low-cost electric charging stations or battery swap.

customer segments of tesla

Tesla’s engineers and designers have designed vehicles appropriate for every customer groups. Vehicle class type is based on the following segments:

• High-end Luxury (Sedan or SUV)
• Mid – price range
• Commercial Vehicles – targeted towards transportation and shipping businesses
• Green Community
• Fast sports car enthusiast
• Autopilot

Key Partners of tesla

OEM Alliances

 •  2009 – Tesla aligned a partnership with OEM manufacturer (Daimler),

 • 2010 – Tesla signed an alliance with Toyota,

 • 2014- Tesla joined Osaka (Japan)

 • March 2012 – Athlon Car Lease Company built an alliance with Tesla

Major Suppliers

 • Brembo: Brakes

 • Fisher Dynamics: Power Seats

 • Inteva Products: Instrument panel

 • Modine Manufacturing Co. : Battery Chiller

 • Sika: Acoustic Dampers

 • Stabilus: Liftgate gas spring

 • ZF Lenksysteme: A Power Steering mechanism

 • Dana Holding: Dana Cooling Technology

 • Panasonic: Lithium-ion batteries

 • Government

key activities

• Research and development
• Design
• Software development
• Sales & Marketing
• Building & Maintenance of Charging Stations Network

growth Strategy

• Tesla’s growth strategy is mostly driven by the anticipated high demand for Model 3.
• R&D cost rose to $81.5 million from $54.9 million a year ago
• R&D budget increase of 48% from the first quarter of 2013 to the first quarter of 2014, the company planned to grow R&D expenses for the second quarter by 30% from the first quarter
• company’s growth strategy involved the modification of the
• existing assembly line to handle the production of two different models: Model S and
• Model X .
• The company’s growth strategy was to increase production of the model S and to unveil its Model X in 2015 and Model 3 in 2017.

Supply Chain Management Strategy

• Supply chain management is the handling of the entire production flow of a good or service.
• Vertically Integrated Supply Chain..
• Battery Issues which led to Redesign...
• Cost and Control...

successes of tesla

• Tesla engineers first designed a power train for a sports car named roadster launched in 2008 at that time 2400 roadsters sold were on the road in more than 30 countries
• current valuation - 33.3 billion dollars
• Giga factories
• Future plans-efficeint auto-pilots and high utility trucks

challenges of tesla

• Roadster model

• Model S

Channels of tesla

• Retail stores, galleries
• Self service online store
• Conferences & sales events

Cost structure of tesla

In 2018, with revenue of $21.46 billion, and the expense of about $22.5 billion. Tesla had a net income

or net loss of about a(-$1 billion).

Revenue Streams of Tesla

Tesla not only sells Electric vehicles but also has created an eco-system of a top of the line green vehicles.

Here is a high level break down of Tesla’s revenue. In 2018, the total annual revenue of Tesla was $ 21.4 Billion

Vehicle sales: $ 17.6 Billion

Vehicle leasing: $ 883 Million

Services and other: $ 1.39 Billion

Total: $ 19.91 Billion

Energy generation & storage segment – it includes sales of solar energy systems and storage products such as solar roof panels, etc. Total: $ 1.55 Billion

conclusion

Tesla did not invent the electric car or even the luxury electric car.

What Tesla did invent was a successful business model for bringing compelling electric cars to the market. (focus is clear).

They had the guts to change the distribution system.

Part of the strategy was building supercharge network. (network building)

Tesla is tapping on the concept of electric cars, the inevitable near future.