THE CENTRAL QUESTION ...
What basic information must I understand to fully appreciate the history of Tesla Motors, the genesis of the Model S, and the strategy that was used to develop, market, and distribute this world class EV?
COURSE ABSTRACT
A general overview of the Tesla Model S with a brief discussion of its history, the many industry awards it has received and the overall strategy that Tesla Motors has applied to the development of battery electric vehicles (BEVs). We also consider the unique production facility that Tesla uses to build the Model S. To obtain a copy of the EVU study guide for this and other available EVU courses, please complete the form on this page.
Course level: Introductory
2. 2
Model S —
An Introduction
part 1
MS-101a
This course is presented as part of
Evannex University—a free, open
learning environment that presents
concise, video-based mini-courses for
those who have interest in electric
vehicles (EVs) …
3. There are EVs and then there’s …
The Tesla Model S represents a significant
automotive achievement
Superior to other BEV and PHEV in virtually
every category
looks, interior volume, interior technology
drag coefficient, range, performance
Superior to other comparable premium ICE
vehicles in almost every category
Dozens of awards, thousands of unqualified
“rave” reviews
3
4. Tesla Motors
Modest beginning in 2003
In 2004, Elon Musk invested $6M in Tesla Motors and
decided to take the company in a new direction
he would change the future of automobiles
an upstart in a staid industry Musk—the visionary
he was told he couldn’t get it done
goals weren’t achievable
his strategy would lead to ruin
and profitability—laughable
4
6. The Beginning …
a top down strategy
build a high-end, high performance
sports car in low volume—the Roadster
build a high-end, high performance
sedan in mid-volume—The Model S
Build variants of the Model S—dual
motor Model S, Model X
Build mid-level, affordable car—the
Model 3
6
7. The Business
sells its own vehicles on-line and
shows those vehicles in company
‘stores’
establishes regional service centers
threatens the existing order
sells electric power train
components to other automobile
companies
patents available to others
7
8. 8
… a free study guide for
all EVU mini-courses is
available for download
from our website …
For a complete list of mini-
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visit: www.evannex.com
Editor's Notes
Throughout the EV Curriculum track, we talked about EVs of all kinds. BEV city cars like the Nissan Leaf and the Ford Focus Electric,
and plug-in hybrids, like the Chevy Volt and the Prius plug-in.
But one EV—a BEV to be precise—rules the EV world. That car is the Tesla Model S.
>> The Tesla Model S represents a significant automotive achievement
>> Superior to other BEVs and PHEVs in virtually every category
>> looks, interior volume, interior technology including a stunning touch screen display that replaces almost all switches and buttons
>> an exterior design that has one of the lowest drag coefficients in the industry, the most range of any BEV,
and performance that is, well, there a performance setting in the P85D version that is called “insane” (and they’re not joking)
>> interestingly, it’s also superior to every other comparable premium ICE vehicle in almost every category
>> It has received dozens of awards including Motor Trend Car of the Year in 2013, and thousands of unqualified “rave” reviews
I’ll admit, it’s hard for me to be objective, because I own a Model S.
That’s an early picture of my car on the right of your screen—vin#184, right after I got it in 2012.
It is, without any qualification, the best car I’ve ever owned.
So … how did a car that almost everyone admires come about.
>> Tesla Motors began in 2003, and interestingly, it began without it current leader and visionary, Elon Musk.
>> The company was struggling to survive when in 2004, Musk invested $6M in Tesla Motors and decided to take the company in a new direction
>> Must, known for brash predictions, stated that he would change the future of automobiles
>> immediately Musk and Tesla Motors became an upstart in a staid industry
>> the old line companies figuratively snickered and told anyone who would listen that he couldn't get it done, that
>> his goals weren’t achievable
>> his strategy would lead to ruin
>> and profitability—laughable!
So much for conventional wisdom.
After it’s launch in late 2012, the Tesla Model S received dozens of awards including Motor Trend Car of the Year in 2013.
We’ve prepared the infographic you see on your screen summarizing some of these.
Pause this video for a moment to take a look. It’s really quite impressive.
For example,
TopGear deemed the Model S the most important car they’ve every tested
Consumer Reports gave it rave reviews — with a rating of 99/100
The NHTSA gave it the best safety rating of any car ever tested
C/Net awarded the Model S Tech Car of the Year
the list is long
Because Musk conceived Tesla as an EV company, he wasn’t hesitant about his approach to the market. He went all in,
>> top down.
He figured, correctly it turns out, the he needed to erase the preconceived notions about EVs—
that they were little toys, not intended for serious car enthusiasts. First, he decided to:
>> build a high-end, high performance sports car in low volume—the Roadster.
It generated lots of press and Tesla was recognized as a player in the exotic car world.
Next, he would build
>> a premium, high performance sedan in mid-volume—The Model S
with the intent of competing with the best luxury cars in the world.
Following the success of the Model S, he would offer
>> variants of the Model S—dual motor Model S, Model X—an SUV/cross-over vehicle
and finally, once the brand was well-established
>> he would build mid-level, affordable car—the Model 3
The first three elements of the strategy are in place, and the last will be completed in the 2017 - 2018 timeframe.
Like most other things about Tesla Motors, it’s business model is also unique.
Almost three years into its production run for the Model S,
the company has spent zero advertising dollars—zero, and yet,
it sells over 3000+ premium vehicles each month.
>> It uses an on-line sales approach, and shows the Model S in company ‘stores’ that are located in large upscale malls.
>> it has established regional service centers for those times when the Model S needs service
As a consequence, the company
>> threatens the existing auto dealership model,
and has experienced significant push-back from many automobile dealer associations.
We talk about this in a EVU mini-course dedicated to the topic later in the Model S track.
In addition to its retail operations, Tesla Motors also
>> sells electric power train components to other automobile companies
>> and has made it many patents available for use by its competitors
In the next part of this EVU mini-course,
we’ll examine how the Model S is made and where the company that makes it is going.