Tesla
Graham MacWilliams and Aloke Desai
History
 Founded in 2003 by Elon Musk, Martin
Eberhard, and Marc Tarpenning
 March 2008- Tesla begins production of Roadster.
Eventually sells 2,150 of Roadsters.
 June 2008- Announce Model S
 Jan 2010- Tesla registers for an IPO
 May 2010- Tesla buys former GM factory in
Fremont, CA and Toyota signs deal to cooperate
in EV development
The Macro Outlook
 Electric car sales have increased 228% in last
year alone
 17,000 in 2011 compared to $38,000 in 2012
 Tesla essentially started the electric car market in
the United States (Volt and Leaf didn’t exist
before)
 EV market has been trailing off
 $10,000 tax rebate for EV cars this next year
under the Obama administration
 Makes EV cars more competitive
Why Tesla?
 Biggest opportunity for growth
 Elon Musk’s proven leadership (PayPal and
SpaceX)
 Appleizing the car industry
 New form of selling cars with no dealerships
 Prove to transform the market, first to produce
electric cars relatively cheaply
Model S
 Announced in 2008
 Released this past summer
 The specs of a sports car
while still being completely
electric
 Competitively price—starts
at $49,000
 Equipped with some of most
the advanced technology—
17’’ screen
 Voted car of the year by
Autmobile.com
Room for Growth
 Stock is so low because Tesla lost $1
billion on the Roadster
 Most don’t know it was planned
 Competitive price can allow for
unlimited growth, especially in
countries like China
 EV market is constantly
expanding, Tesla leads the market
with very few legitimate competitors
 Tesla plans to release Model X
(cheaper, mini-SUV) where they start
making profits
Valuation Measures
Historical Information
Comparison with Market
Competitors
 Main competitor is Fisker
 Karma starts at $96,000
 Repeated troubles
safety-wise
 Chevy and Nissan both
have Evs, but neither are
sports cars
 Sales of both are down
Main Concerns
 Lost money on the Roadster
 Analysts limit value of EV market
 Production capacity
Questions
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