One of our presentation during Strategic Management class in KDI School of Public Policy and Management, South Korea. All graphics and information used in this slide belong to the original producer and owner. This slide is for educational purpose only.

1. Tesla Motors
The Automotive Industry Revolution

2. Tesla Motors
Future of Automotive Industry
“Tesla Motors was founded in 2003 by a group of engineers in Silicon
Valley who wanted to prove that electric cars could be better than
gasoline powered cars and to make every car electric on the road”
To accelerate the world’s transition to sustainable energy
13,058 people on Dec 2015
The Tesla Factory in Fremont, California, United States and 120 service
location around the globe. It is one of the world’s most advanced
automotive factories, containing 5.3 million square feet of manufacturing
and office space.
Total Assets
Total Liabilities
Total Equities
USD 8.09 Billion
USD 6.96 Billion
USD 1.08 Billion
Mission
Employees
Headquarter & Factory
Balance Sheet
0.413
2.01
3.2
4.05
2010 2011 2012 2013 2014
Revenue & Sales
Graph of revenue in Billion USD
Sales by end of 2015= USD 14 Billion
 To stress a unique approach of the brand, based on
electric vehicles’ breakthrough, and to reflect the idea of
efficient electricity usage. Engineers were eager to prove
that electric engines can be powerful and endurable at
the same time.
 The stylish letter T stands for the name of the company,
it also contains armor shield frame which makes the
badge looks very modern, attractive and symbolizes high
level of reliability and safety driving.
 Every detail of Tesla logo represents style, elegance and
innovations.
Story Behind the Logo

3. • No gas, charge at home or free at a Tesla charging station and doesn't pollute
the environment
• Per charge driving 265 Miles, 50% less costly as compare to non-electric vehicles
and no oil changes
• The car smoothly accelerates from 0 to 60 mph in 3.7 seconds, There's no delay
• Tesla's warranty (8 years) is better and longer than everyone's
• Available with optional kids seats for the rear, tesla can seat 7 and very safe
• Less depreciation. Tesla's hold their values better than other luxury cars
• Quiet, the electric motor make very little sound. Tesla is one of the most
aerodynamic product cars ever and has little road or wind noise
• Full recharging takes not more than 2 hours, but Supercharger network provides
convenient and free access to high speed charging, refilling half a charge in as
little as 20 minutes
• Brake pad replacements are less frequent because Tesla's have regenerative
braking
Tesla Motors
Why it is unique?

4. Elon Musk
The Ambitious Revolutionist
He is not only the founder of Tesla Motors, but also the
founder, CEO and CTO of SpaceX; co-founder, CEO and
product architect of Tesla Motors; co-founder and chairman
of SolarCity, co-chairman of OpenAI; and co-founder
of PayPal and so on.
Born on June 28, 1971, (45 year old) and is a South African
born Canadian-American business magnate, engineer and
inventor, young entrepreneur and one of America’s youngest
billionaires.
June 2016, an estimated net worth of USD 12.7 billion, the
83rd wealthiest person in the world.
Married two wives and has 6 sons
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1. The man has inspired a generation
2. He has made a million, turned that into a billion, and
then turned that into $12.7 billion.
3. Elon Musk is in a unique category not just because of
how superbly he has done in business — from Zip2
to PayPal to Tesla & SpaceX & SolarCity. He’s also a
bit of a cult superhero. Actually, he’s an iconic figure
and quite idolized in several sub-cultures. Space
nuts. Business freaks. Cleantech lovers. Electric car
enthusiasts. Coding nerds. And surely others as well.
4. He’s loved so much not just because of what he’s
achieved, but more how he interacts with the public.
5. Elon Musk is real, thoughtful, cautious, humble,
cares about others and wants to spend his life
helping society, and apart from this when he talks to
a common man, he talks on his level, and remains
“just one of the guys.
Why Elon is so special?
Background Check

5. Elon Musk
Words of Wisdom
I like creating things
that have never
been seen before or
even imagined
before
When I was in College, I wanted
to be involved in things that
would change the world. NOW I
AM.
FAILURE is an option
here. If things are not
failing, you are not
innovating enough.
Constantly think about
how you could be doing
things better and keep
questioning yourself
If something is
important enough, you
should try even if the
probable outcome is
FAILURE

6. Swot Analysis
Strength, weakness, opportunity & threat
 Leader in electric sports car
 Strong & iconic CEO
 High-tech & innovative brand
 Using own distribution store
 Popular among new gen
 Strong investor & partner
 Slow market acceptance
 Competitor from mature car
company
 Low gas price
 Other technologies – fuel cell
& plug in hybrid
 Demand from China big
consumer market
 Global megatrend
 Cultural change – green
energy demand
 Support by government
policy
 High price – Model X
 Long waiting time
 Young corporation – 2003
 Weak after sales support
 Cyber security threat
STRENGTHS WEAKNESSES
OPPORTUNITIES THREATS
HIGHLIGHTS!
Strengths – market leader, iconic CEO,
strong investor/partner
Weaknesses – high price, long waiting
time << gigafactory
Threats – competitor, emerging
technologies, slow acceptance
Opportunities – new market, comply
with megatrends, government policy

7. 4P’s Marketing Mix
How Tesla Motors plan to revolutionize the market
4P’S
MARKETING
MIX
PRODUCT
Sporty design
Spacious inside
Autonomous
handling
Green energy
EV technologies
PRICE
Start with
competitive price
Model 3 is ranked
no. 5/11 @ $35k
Cost saving $3k
yearly
PLACE
Online booking &
reservation
Own distribution
PROMOTION
Heavy usage of social
media & online
Zero paper ad
CEO = product face
Customize order
Educate customer,
not press sale

8. Strategic Plan
The master planner - Elon Musk
Tesla Motors VISION is the company’s
front drive system
The STRATEGIC MISSIONS are the
steering system (driver)
Company’s STRATEGIES are the
internal compartment (passenger)
Finally, the IMPLEMENTATION
CONCEPTS are the rear drive system
Become pioneer of
sustainable and
comfortable vehicle
To produce renewable
energy vehicle with
better driving
To increase
revenue via better
marketing concept
Internet of Things | Smart Partnership | Big Data
Educate Customer | Technology Driven | Safety
Environmental Friendly | Think Like Owner
Autonomous
driving
Big plan
low cost
Societal
marketing
Continuous
battery R&D
Foot Note: This is not Tesla Motors official strategic plan, it is just our imagination

9. The Future
What is the future of automotive industry?
 Initially focused was on passive safety: seat belts, padded dashboards, moved on to airbags,
rigorous structural standards for crash-worthiness, requirements for emissions and fuel
economy.
 As urbanization has accelerated. Brown haze, gridlock, and a shortage of parking now: no-drive
days, Europe :low-emission zones to restrict vehicles with internal-combustion engines.
 China :the government has indicated that it favors electric vehicles,
 For automakers, challenging environment, mix of vehicles could collide with regulatory priorities.
 Regulation create new opportunities :automakers are investigating plays across alternative fuels
or investing in wind farms to generate power for electric vehicles.
 The car industry should expect to remain under regulatory scrutiny, and future emissions
standards will probably require to adopt some form of electrified vehicle.
 The end of the internal-combustion engine’s dominance more a matter of “when” than of “if.”
The interplay of those forces will ultimately determine whether range-extended electric vehicles,
battery electric vehicles, or fuel-cell electric vehicles prevail.

10. The Future
Where is tesla motors in the future?
 Musk foresees the day when Tesla Motors is selling millions of cars a year and is a rival to General Motors
and Toyota.
 When asked about challenging the world’s biggest automakers, he added, “Possibly, it’s not out of the
question.” To get there, Musk said “I think over time if we continue to, if we build great products and we
keep our cost structure competitive, (Tesla will need) many plants…in fact, many auto plants and many Gig
factories, I think, are needed.”
 Tesla `s current problem isn`t outdoing competitors ,but rather that the mass market is resistant to
adopting electric vehicles, this is largely due to the lack of global recharging infrastructure, among other
things.
 Currently the sales for EV`s only account for 0.6% of the total number of vehicles sold worldwide, a
quarter of those sales being tesla vehicles.
 In order for Tesla motors to adopt a market penetration strategy ,they will need the long term support of
other automobiles manufactures in order to incentivize the development of recharging stations.
 In order to support tesla`s vision, it is recommended that they develop cheaper alternatives to enable
tesla to sell to mass market for more attractive &affordable in order to reach broader customer base.
 Ron Baron told Musk that his companies investment was not in Tesla Motors as such, but in Musk himself,
and then added why something like the recent Volkswagen cheating scandal could never happen at a
Musk led company.

11. The Future
Tesla Motors in South Korea
 It has its own market of electronic vehicles with full support from the
government
 Korea has leading position in lithium battery technologies - LG ,SK
 Government has plans to replace up to 20% of nation`s passenger
vehicles with EV`s by 2020-
 EV industry: Korea has rich experience, HYBRID cars are
commercialized(most actively developed type of EV)
 EV industry is asking the government for early establishment of
charging infrastructure
 Regulations in favor of EV domestic market growth: purchase subsidies,
charger installation support, 8 preferential promotion cities.
 Tesla has a good opportunity to invest in Korean market, however
consumers in South Korea have a strong tendency to purchasing
domestic products(due to price advantage and tax bonus),Hyundai,
Daewoo, Kia.

12. “The stone age came to an end not
for lack of stones ,and oil age will
come to an end not for lack of oil”
- Saudi Minister
Thank for your good attention!

13. • AHMAD SHAH NASIRY
• ABDELHAK BOULSANE
• MOHD FADZIL