C O M PA N Y O V E R V I E W

Founded in 2003 by a group of engineers who wanted to prove

that electric vehicles can be better, quicker and more fun to drive
than gasoline cars.

Vehicles are produced at its Fremont factory in California

Primarily occupied with electric vehicles

Markets and and sells directly to consumers through stores and

galleries
 C O M PA N Y O V E R V I E W
Headquarters: Palo Alto, California

President and CEO: Elon Musk

Employees: 30, 025

Product line: Roadster, Model S, Model X, Model 3

Geographical reach: 208 stores and service locations, 751

supercharge stations
CURRENT VISION & MISSION

Create the most compelling car company of the 21st century by

driving the worlds transition to electric vehicles.

To accelerate the advent of sustainable transport by bringing

compelling mass market electric cars to market as soon as possible.
V I S I O N & M I S S I O N E V A L U AT I O N

COMPONENT TESLA

Products/services /

Customers

Employees

Markets /

Technology /

Public image

Self-concept

Philosophy

Survival/growth/profits /
IMPROVED VISION & MISSION

Tesla Motors Vision is to provide everyday drivers with an

automobile that is not only efficient, but is also innovative with no
compromise.

Tesla Motors Mission is to provide customers all around the world

with highly efficient electric sports cars. Tesla Motors utilizes style,
acceleration, and handling using state-of-the-art technologies to
make them among the quickest and most energy-efficient cars on the
road. We strive to create a suitable working environment for all our
staff, and to also generate a steady stream of cash flow to provide
stability for our investors.
COMPETITORS VISION & MISSION

To become the worlds most valued automotive company.

To earn customers for life by building brands that inspire passion

and loyalty through not only breakthrough technologies but also by
serving and improving the communities in which we live and work
around the world.
INTERNAL ASSESSMENT
 F I N A N C I A L R AT I O A N A LY S I S

PROFITABILITY RATIOS

2014 2013

Operating Margin -5.75% -3.03%

Profit Margin -9.19% -3.68%

ROA -5.03% -3.06%

ROE -30.31% -11.08%

LIQUIDITY RATIOS

2014 2013

Current Ratio 1.77 1.46

 OPERATING RATIO

2014 2013

Fixed-asset turnover -16.08% -10.03%

DEBT RATIO

2014 2013

Debt-Equity 5.03 2.62

 C U R R E N T O R G A N I Z AT I O N A L C H A R T

CHAIRMAN, PRODUCT
ARCHITECT & CEO
ELON MUSK

CHIEF TECHNICAL CHIEF FINANCIAL CHIEF INFORMATION

CHIEF DESIGNER
FRANZ VON HOLZHAUSEN
OFFICER OFFICER OFFICER
JB STRAUBEL DEEPAK AHUJA JAY VIJAYAN

VP, BUSINESS VP, WORLDWIDE VP, HUMAN

VP, SUPPLY CHAIN
DEVELOPMENT SALES AND SERVICE RESOURCES PETER CARLSSON
DIAMUID OCONNELL JEROME GUILLEN AMNON GESHURI
 RECOMMENDED
O R G A N I Z AT I O N A L C H A R T
CHIEF EXECUTIVE OFFICER

CHIEF OPERATING OFFICER

CHIEF TECHNICAL CHIEF FINANCIAL CHIEF INFORMATION

CHIEF DESIGNER
OFFICER OFFICER OFFICER

PRESIDENT, PRESIDENT,
PRESIDENT, HUMAN PRESIDENT, SUPPLY
BUSINESS WORLDWIDE SALES
RESOURCES CHAIN
DEVELOPMENT AND SERVICE

PRESIDENT OF NORTH AMERICA PRESIDENT OF EUROPE PRESIDENT OF ASIA

 MARKET POSITIONING MAP
HIGH LUXURY CARS

BMW I8

TESLA
MODEL S

FUEL ELECTRIC
BURNING CARS
CARS GM
CHEVROLET
VOLT

TOYOTA
PRIUS

LOW VALUABLE CARS

V A L U E O F T H E F I R M A N A LY S I S

Stockholders Equity $667 K

Net Income x5 $370 K

(Share Price/EPS) x Net Income $24 M

No. of Shares Outstanding x Share Price $28 B

Method Average $7 B
KEY STRENGTHS

Strong R&D department

Strong management team

Excellent designs

Large production capacity

KEY WEAKNESSES

Relatively high priced

Charging and battery problems

Limited operating history

 I F E M AT R I X
KEY INTERNAL FACTOR WEIGHT RATING SCORE
Strengths
1. Strong R&D Department Calibers 25% 4 1.00
2. Strong Management Team 15% 4 0.60
3. Excellent Designs 5% 3 0.15
4. Great Location 5% 3 0.15
5. Large production capacity 3% 2 0.06
Weaknesses
1. Relativeley high priced compared to fuel cars 15% 3 0.45
2. Few charging stations 10% 2 0.20
3. Low battery range 15% 2 0.30
4. Slow charging process 3% 1 0.03
5. Lack of brand recognition 5% 3 0.15
Total 100% 3.09
EXTERNAL ASSESSMENT
COMPETITIVE REVIEW

Few direct competitors

Captures niche market

Performance superior to competitors

Exclusivity of owning a Tesla

C O M P E T I T I V E P R O F I L E M AT R I X

Tesla GM Ford

Key Success Factors Weight Rating Score Rating Score Rating Score

High Profits 0.10 2 0.20 4 0.40 3 0.30

Low Costs 0.15 2 0.30 3 0.45 4 0.60

Product Quality 0.10 3 0.30 4 0.40 2 0.20

Reputation 0.05 2 0.10 3 0.15 4 0.20

Growing Sales 0.05 4 0.20 2 0.10 3 0.15

Customer Loyalty 0.10 2 0.20 4 0.40 3 0.30

Global Expansion 0.10 2 0.20 4 0.40 3 0.30

Market Share 0.05 2 0.10 4 0.20 3 0.15

Growth 0.20 4 0.80 2 0.40 3 0.60

Demand 0.10 4 0.40 3 0.30 2 0.20

Total 1.00 2.80 3.20 3.00

 KEY OPPORTUNITIES

Electricity as renewable energy

Increase in environmental awareness

Different uses of Teslas battery technology

Growing government support on

environmentally friendly vehicles

Large international market potential

 K E Y T H R E AT S

Very strong competition with less operating costs

Limited supply of raw materials

Limited experienced resource pool

Low awareness of the products importance

 E F E M AT R I X
KEY INTERNAL FACTOR WEIGHT RATE SCORE
Opportunities
1. World running out of oil (electricity is a renewable energy) 20% 5 1.00
2. People care more about environment 5% 2 0.10
3. Can use their battery technology to storing solar power 5% 4 0.20
4. Growing support by government 10% 3 0.30
5. Large international market 10% 4 0.40

Threats
1. Very strong competition 20% 2 0.40
2. Economic Slowdown 7% 2 0.14
3. limited supply of raw materials 15% 2 0.30
4. Limited resource pool 5% 4 0.20
5. Awareness of importance of Electric Vehicles 5% 3 0.15
Total 100% 3.19
 S T R AT E G Y
F O R M U L AT I O N
 S W O T M AT R I X
Strengths Weaknesses

1. Strong R&D Department Calibers 1. Relativeley high priced compared to fuel cars

2. Strong Management Team 2. Few charging stations

3. Excellent Designs 3. Low battery range
4. Great Location 4. Slow charging process
5. Large production capacity 5. Lack of brand recognition

Opportunities Threats

1. Electricity is a renewable energy 1. Very strong competition

2. Increase in environmental awareness 2. Economics Showdown

3. Different uses of Teslas battery technology 3. Limited supply of raw materials

4. Growing support by government 4. Limited resource pool

5. Large international market 5. Low awareness of importance of Electric Vehicles

 S PA C E M AT R I X
Finance Position Stability Position
1. Return on Invesment 4 1. Technology changes -2
2. Leverage 2 2. Rate of inflation -6
3. Liquidity 5 3. Price range of competing -6
4. Working Capital 3 4. Barriers to entry into market -6
5. Cash Flow 4 5. Competitive pressure -5
6. Inventory Turnover 3 6. Demand variability -4
7. Gross Profit Margin 6 7. Ease to exit from market -6
Position 27 Position -35

Competitive Position Industry Position

1. Market share -3 1. Growth Potential 5
2. Product Quality -1 2. Financial stability 5
3. Customer loyalty -1 3. Profit 4
4. Technology -2 4. Resources 6
5. Control over suppliers and -4 5. Ease of entry into market 3
6. Product life cycle -3 6. Extent Leveraged 2
7. Capacity -2 7. Productivity 5
Position -16 Position 30
 S PA C E M AT R I X
FINANCIAL

CONSERVATIVE AGGRESSIVE

COMPETITIVE INDUSTRY

(+2, -1)

DEFENSIVE COMPETITIVE

STABILITY
 B C G M AT R I X

QUESTION MARKS
STARS

CASH COWS DOGS

 I E M AT R I X
IFE

STRONG AVERAGE WEAK

STRONG I II III
EFE
AVERAGE IV V VI

WEAK VII VIII IX

IFE - 3.09 GROW & BUILD

EFE - 3.19
 G R A N D S T R AT E G Y M AT R I X
RAPID MARKET GROWTH

MARKET PENETRATION
PRODUCT DEVELOPMENT
MARKET DEVELOPMENT
BACKWARD INTEGRATION

WEAK STRONG
COMPETITIVE COMPETITIVE
POSITION POSITION

SLOW MARKET GROWTH

 Q S P M AT R I X
Market Development Product Development

Key Factors WEIGHT AS TAS AS TAS

Opportunities

1. Electricity is a renewable energy 0.20 4 0.80 3 0.6

2. People care more about environment 0.05 4 0.20 2 0.1

3. Can use their battery technology to storing 0.05 2 0.10 3 0.15

solar power
4. Growing support by government 0.10 2 0.20 3 0.3

5. Large international market 0.10 3 0.30 2 0.2

Threats

1. Very strong competition 0.20 3 0.60 4 0.80

2. Economics Showdown 0.07 3 0.20 2 0.14

3. limited supply of raw materials 0.15 2 0.30 4 0.60

4. Limited resource pool 0.05 3 0.15 4 0.20

5. Awareness of importance of Electric Vehicles 0.05 2 0.10 1 0.05
low
 Q S P M AT R I X
Market Development Product Development
Key Factors WEIGHT AS TAS AS TAS

Strengths

1. Strong R&D Department Calibers 0.25 3 0.75 4 1.00

2. Strong Management Team 0.15 4 0.60 3 0.45

3. Excellent Designs 0.05 2 0.10 3 0.15

4. Great Location 0.05 3 0.15 2 0.10

5. Large production capacity 0.03 3 0.10 2 0.06

Weaknesses
1. Relativeley high priced compared to fuel 0.15 4 0.60 3 0.45
cars
2. Few charging stations 0.10 3 0.30 1 0.10
3. Low battery range 0.15 3 0.45 2 0.30
4. Slow charging process 0.03 3 0.10 2 0.06
5. Lack of brand recognition 0.05 2 0.10 1 0.05
Total 6.19 5.86
 N E W S T R AT E G I E S

Initiative Budget

1. Utilise R&D to create a cheaper variant $100M

2. Open a manufacturing plant in Europe $4B

3. Open a manufacturing plant in Asia $4B

4. Open more dealerships throughout America, Europe, and Asia $600M

5. Have more charging stations through America, Europe, and Asia $500M

6. Introduce Tesla in places which aim to lessen harmful emission of cars $300M

Total $9.5B
 S T R AT E G Y
I M P L E M E N TAT I O N
 E S P / E B I T A N A LY S I S
Common Stock Financing Debt Financing 12% Stock 88% Stock

Recession Normal Boom Recession Normal Boom Recession Normal Boom Recession Normal Boom

EBIT (344.00) 100.00 334.00 (344.00) 100.00 334.00 (344.00) 100.00 334.00 (344.00) 100.00 344.00

Interest - - - 11.50 11.50 11.50 10.12 10.12 10.12 1.38 1.38 1.38

EBT (344.00) 100.00 334.00 (355.50) 88.50 322.50 (354.12) 89.88 323.88 (345.38) 98.62 332.62

Taxes - - - - - - - - - - - -

EAT (344.00) 100.00 334.00 (355.50) 88.50 322.50 (354.12) 89.88 323.88 (345.38) 98.62 332.62

No. of
125.30 125.30 125.30 123.19 123.19 123.19 123.44 123.44 123.44 125.05 125.05 125.05
Shares

EPS (2.75) 0.80 (2.89) 0.72 2.62 (2.87) 0.73 2.62 (2.76) 0.79 2.66
E S P / E B I T A N A LY S I S
4
3
2
1
0
$ 344 M $ 100 M $ 344 M
-1
-2
-3
-4

DEBT FINANCING
COMMON STOCK FINANCING
 P R O J E C T E D I N C O M E S TAT E M E N T
2013 2014 2015 2016 2017
Sales
Automotive sales 1,997,786 2,142,097 2,736,022 3,329,948 3,923,873
Development 15,710 19,656 15,657 11,659 7,660
Services
Total Sales 2,013,496 2,161,753 2,751,679 3,341,607 3,931,533

Less COGs
Automotive Sales 1,543,878 1,689,716 2,154,502 2,619,289 3,084,075
Development 13,356 16,106 16,740 17,374 18,008
Services
Overhead - - - - -
Other - - - - -
Total COGs 1,557,234 1,705,822 2,171,242 2,636,663 3,102,083

Gross Profit 456,262 455,931 580,437 704,944 829,450

Operating Expenses
R&D 231,976 322,467 370,661 418,854 467,048
Administrative 285,569 318,469 383,394 448,320 513,246

Total Operating 517,545 640,936 754,055 867,174 980,294

Expenses

Operating Income (61,283) (185,005) (173,618) (162,230) (150,844)

Interest Expenses 22,791 22,806 29,569 36,332 43,096

Other Expenses (32,934) (30,188) (37,735) (45,282) (52,829)
Total (10,143) (7,382) (8,166) (8,950) (9,733)
Nonoperating

Income Before (71,426) (192,387) (181,784) (171,180) (160,577)

Taxes
Income Taxes 2,588 2,570 3,259 3,948 4,637

Net Income (74,014) (194,957) (185,043) (175,128) (165,214)

Cumulative Net (878,966) (194,957) (379,999) (555,128) (720,342)

Income
 PROJECTED BALANCE SHEET

2013 2014 2015 2016 2017

Assets
Current Assets
Cash 201,890 294,710 349,959 405,209 460,459
Restricted Cash 19,094 30,832 31,548 32,264 32,980
Accounts Receivable 26,842 29,868 37,157 44,446 51,735
Inventory 268,504 281,934 356,009 430,083 504,158
Other 8,438 23,565 27,193 30,821 34,450
Total Current Assets 524,768 660,909 801,866 942,823 1,083,782
Long term assets
Operating lease vehicle 10,071 15,940 19,350 22,751 26,152
PPE 552,229 689,669 866,655 1,043,641 1,220,627
Restricted Cash 5,159 7,403 8,197 8,991 9,784
Other long term assets 21,963 31,774 37,502 43,230 48,958
Total long term assets 589,422 744,786 931,704 1,118,613 1,305,521
Total Assets 1,114,190 1,405,695 1,733,570 2,061,436 2,389,303

Liabilities
Current Liabilities
Deffered development compensation 50,841 54,721 70,718 86,715 102,712
Deffered Revenue 1,905 2,389 2,318 2,248 2,177
Accounts Payable 303,382 323,910 413,117 502,325 591,533
Capital lease obligation 4,365 4,754 6,055 7,356 8,657

Accrued liabilities 39,798 48,587 57,283 65,979 74,675

Reservation payment 138,817 171,674 211,605 251,536 291,467

Total current liabilities 539,108 606,035 761,096 916,159 1,071,221

Long Term Liabilities

Common preferred stock liability 20,657 25,624 31,859 38,094 44,329

Long term debt and liabilities 426,665 56,561 713,437 860,314 1,007,190
Deferred revenue and capital lease
3,060 3,613 3,906 4,198 4,491
obligations
Total Long Term Liabilities 450,382 85,798 749,202 902,606 1,056,010

Total Liabilities 989,490 691,833 1,510,298 1,818,765 2,127,231

Shareholders' Equity

Common Stock 115 164 197 230 263

Additional Paid-in Capital 1,190,191 1,473,685 1,759,977 2,046,270 2,332,563

Retained Earnings - (2) (2) (2) (2)

Other (1,065,606) (1,269,975) (1,536,902) (1,803,828) (2,070,755)

Total Shareholders' Equity 124,700 203,872 223,270 242,670 262,069

Total Liabilities and Shareholders'

1,114,190 895,705 1,733,568 2,061,435 2,389,300
Equity
 P R O J E C T E D F I N A N C I A L R AT I O S

2010 2011 2012 2013 2014 2015

Current ratio 2.8 1.9 1.0 1.9 2.3 2.4

Quick ratio 2.2 1.7 0.5 1.4 1.7 1.8

Long term debt to equity ratio 0.3 1.2 3.3 0.9 0.9 0.8

Inventory turnover 2.5 4.1 1.5 5.9 8.3 10.0

Total assets turnover 0.3 0.3 0.4 0.8 10.9 13.4

Accounts receivable turnover -36.2 -72.2 -23.9 -91.9 -189.9 -309.4

Average collention period -10.1 -5.1 -15.3 -4.0 -1.9 -1.2

Gross profit margin 0.3 0.3 0.1 0.2 0.5 0.6

Net profit margin -1.3 -1.2 -1.0 0.0 0.0 0.0

Return on Assets -0.4 -0.4 -0.4 0.0 0.2 0.5

Return on Equity -0.7 -1.1 -3.2 -0.1 0.1 0.3

CONCLUSION