Tesla Motors 
Tesla Motors – Company Profile
By Kevin Jarosz
IE-618 Fall 2014
Financial Impact
• Tesla will pay for this by taking a cut of the apps.
• Tesla will take a 30%of the cost
•
Assuming each Tesla owner downloads 5 apps the first year at an
•
average price of $10, that is approximately $6M in revenue in 2015 of which Tesla gets
$1.8M to pay.
• In Q2 2014 Tesla reported their vehicle margin was 26.9% on a GAAP basis, and it is clear that apps will only increase vehicle margin.
• Owners will be buying apps for the entire time they own the vehicle (Americans on average tend to keep new vehicles for almost 6 years), a Tesla could allow transfer of apps from vehicle to vehicle creating a new form of 'lock-in.'
Financial Impact
Tesla is uniquely positioned to lead in this area given that all cars since 2012 have shipped with the ability to be updated, have dedicated 3G and Wi-Fi connections, and have acres of screen real estate to exploit.
Return of Investment
The costs for this can add up. There's no such thing as a "typical" app, so it's hard to give a meaningful average cost.
But as a general working figure, we can say it costs at least $30,000 to design a brand-quality iPhone app.
For enterprise-scale organizations like consumer banks and nationwide retail stores, they have the capital, and the ROI justifies it. But if your budget for mobile is under $100,000, it may not be a good approach.
The Growth of Tesla
Government support is mutually-beneficial
Capitalization:
• Today’s Market Cap is estimated at: $30.75B
Tesla Employees:
• Tesla currently employs over 6,000 employees
• This number is expected to double when they open their battery Giga-Factory in
Reno, NV in 2017.
According to Gov. Brian Sandoval, Tesla’s new battery factory is projected to have a
$100B economic impact to the state of NV over the next 20 years.
Income Statement
A deeper look into Tesla’s Financial Status
Revenue
• Total Revenue increased fivefold from
CY12 to CY13
• Gross
By Kevin Jarosz
IE-618 Fall 2014
Financial Impact
• Tesla will pay for this by taking a cut of the apps.
• Tesla will take a 30%of the cost
•
Assuming each Tesla owner downloads 5 apps the first year at an
•
average price of $10, that is approximately $6M in revenue in 2015 of which Tesla gets
$1.8M to pay.
• In Q2 2014 Tesla reported their vehicle margin was 26.9% on a GAAP basis, and it is clear that apps will only increase vehicle margin.
• Owners will be buying apps for the entire time they own the vehicle (Americans on average tend to keep new vehicles for almost 6 years), a Tesla could allow transfer of apps from vehicle to vehicle creating a new form of 'lock-in.'
Financial Impact
Tesla is uniquely positioned to lead in this area given that all cars since 2012 have shipped with the ability to be updated, have dedicated 3G and Wi-Fi connections, and have acres of screen real estate to exploit.
Return of Investment
The costs for this can add up. There's no such thing as a "typical" app, so it's hard to give a meaningful average cost.
But as a general working figure, we can say it costs at least $30,000 to design a brand-quality iPhone app.
For enterprise-scale organizations like consumer banks and nationwide retail stores, they have the capital, and the ROI justifies it. But if your budget for mobile is under $100,000, it may not be a good approach.
The Growth of Tesla
Government support is mutually-beneficial
Capitalization:
• Today’s Market Cap is estimated at: $30.75B
Tesla Employees:
• Tesla currently employs over 6,000 employees
• This number is expected to double when they open their battery Giga-Factory in
Reno, NV in 2017.
According to Gov. Brian Sandoval, Tesla’s new battery factory is projected to have a
$100B economic impact to the state of NV over the next 20 years.
Income Statement
A deeper look into Tesla’s Financial Status
Revenue
• Total Revenue increased fivefold from
CY12 to CY13
• Gross