Electric Cars by Tesla

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  • Topic: Electric car, Tesla Roadster, Tesla Motors
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PAPER FOR INTERNATIONAL MARKETING:

ELECTRIC CARS
BY TESLA MOTORS

Submitted by:

Bruks
BM 236

THE TREND OF THE FUTURE:
ELECTRIC CARS BY TESLA MOTORS

I. SITUATIONAL ANALYSIS

The concern for the environment has never been bigger than at the turn of the century. The growing acceptance of global warming, coupled with the growing green marketing galore gave impetus for the clamor for major auto companies to build a better and more affordable electric car. This plus the unpredictable oil price spikes and hikes, is intensifying the race to build the ideal car of the future at a greater height.

The poster child of the independent electric car movement has been Tesla Motors. When the company launched, it promised to reinvent the auto industry in the mold of a Silicon Valley start-up, and leave Detroit and the gas driven automobile in the dust. After hitting a number of misses: product delays, boardroom discord, and major operating losses, the company has finally emerged from the slump. An investment from Germany Daimler AG (maker of Mercedes), a $465 million US government loan, and a potential IPO, add up to cash and momentum for Tesla Motors electric car start-up.

Tesla’s total assets is a total USD 361.6M, with US sales alone of USD 116.7M. Tesla boasts of two electric car models: The Tesla Roadster and the Tesla S model. As of January 2011, Tesla has taken about 3,500 reservations for the Model S and expects to begin delivering cars to customers in 2012. Tesla currently employs almost 900 full time employees and is aggressively recruiting employees for positions in its headquarters in Palo Alto, California; at its European headquarters in Maidenhead, UK; and at an increasing number of sales facilities throughout North America and Europe. Tesla plans to build the Model S in 2012 in Fremont, California in an assembly plant formerly operated by NUMMI, a now defunct joint venture of Toyota and General Motors. Tesla purchased a stake in the site in May 2010 for US$42 million, and opened the facility in October 2010 as the Tesla Factory.

Tesla Roadster
[pic][pic]
The Tesla Roadster is a screaming-fast, all-electric two-seater sports car built on the frame of the Lotus Elise. The specs, if they can be delivered, are impressive: 0 – 60 mph in less than four seconds, 135-mpg equivalent, 200-mile range, and a brilliant tech design that wires together nearly 7,000 mass-commodity rechargeable lithium batteries. The price? A whopping $109,000! While Tesla’s path to production hasn’t been as smooth as the Roadster’s power delivery, the company seems to be past the worst of its growing pains. The 2010 Tesla Roadster continues to earn praise for its acceleration—what Scientific America calls "an insane amusement park ride." The company has delivered nearly 1,000 Roadsters to date (as of November 2009). Tesla Model S

[pic][pic]
What makes the Model S so cool? First of all, the visual design is gorgeous. Second, it seats five—or seven if you count the two side-facing rear seats for small children. There are killer features, like the 17-inch touch screen that provides all of the vehicle’s interface components such as climate control and entertainment, but also offers 3G or wireless connectivity. But most importantly, the Model S is way more affordable than the company’s Tesla Roadster. The current price target for the Tesla Model S is $57,900 (minus a $7,500 federal tax credit)—still not in range for most mainstream buyers but moving in the right direction. The Model S is planned for release in late 2011.

II. SWOT ANALYSIS

A. STRENGTHS
Electric cars are environment friendly. They produce no tailpipe emissions that are currently the major source of our global warming problem. There is of course, the process of producing the electricity that moves the emissions further upstream to the utility company’s smokestack. But even dirty electricity used in...
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