GROUP 5
(Vandara Kam, Trenton Harris, Elias Osio, Yvonne Ongera, Sagar Patel, Delanie Joseph)
BRIEF HISTORY & OVERVIEW
• July 2003 — Tesla Motors is founded in California by Martin Eberhard and
Marc Tarpenning.
• April 2004 — Billionaire PayPal founder Elon Musk invests in Tesla and
joins the board.
• August 2006 — Actor George Clooney is among those who put down
$100,000 deposits for the first 100 Tesla Roadster electric sports cars.
• March 2009 — Tesla starts taking reservations for the Model S and says
production will begin in late 2011. More than 500 people reserve the
sedans in the first week.
• June 2009 — Tesla gets approval for $465 million in low-interest loans
from the U.S. Department of Energy to produce the Model S.
• January 2010 — Tesla registers for an initial public offering of stock.
• June 2010 — Tesla shares begin trading on the Nasdaq Stock Exchange.
The IPO raises $226.1 million.
• January 2011 — Tesla, reporting full-year financial results for the first time,
says it lost $154.3 million in 2010.
HISTORY (CONT’D)
• Tesla Motors is the second oldest publicly
listed American Automaker (behind Ford).
• Tesla Motors’ stock is the third most
shorted on American stock exchanges:
52.9% shares of float.
• Tesla Motors is an automaker based in
Silicon Valley, California.
• Motor trend magazine named Model S
2013 car of the year
TESLA ROADSTER
• First highway-capable all-electric vehicle
• The motor is air-cooled and does not need a
liquid cooling system
• 0 to 60 mph in 3.9 sec.
• Base price of $109,000
in the United States
TESLA MODEL S
• 0 to 60 miles in 4.4
seconds
• All Glass Panoramic
Roof
• Designed as an
alternative to BMW 5
Series, the Audi A6,
the Mercedes-Benz
E-Class
TESLA MODEL X
• Delivery begins in 2014
• 0 to 60 mph in 5 seconds
• Doesn’t use a drop of
gasoline
• Falcon Wings
open up and out
of the way
TESLA’S SERVICE
INCLUDES
• Annual inspection (or every 12,500 miles)
• Replacement parts like brake pads and
windshield wipers (excluding tires)
• 24 hour roadside assistance
• System monitoring
• Remote diagnostics
• Software updates
• New features
TESLA’S SERVICE PLAN
• Tesla Rangers can come to
your home or office to
perform most maintenance
and warranty repairs
SUPERCHARGER NETWORK
• A network of 480-volt fast charging stations to
aid the Model S in making long trip
WORK CULTURE
• Pace is fast, the work is
stimulating, structure is
limited, & innovation is
expected
• Driven by work that
contributes to a global
impact
• They are very
passionate about their
future in the industry
• Work in small, focused
teams
ENVIRONMENT
• Zero emissions are
released into the
atmosphere.
• Electric cars does
burn gasoline
• Uses electricity however it is produced, can
be from coal, solar, hydro, geothermal, or
wind power.
CHARITABLE CONTRIBUTIONS
2009 Renew America Road trip
• Purpose was to raise awareness about green
technology and promote electric vehicles.
• An electric car made by Tesla Motors was driven
from New York to San Francisco.
• The proceeds went to
different charities: the
American Lung Assoc.,
Parkinson’s Assoc., and
local homeless shelters.
CHARITABLE CONTRIBUTIONS
2011 Tsunami Relief Efforts
• In 2011, Elon Musk, CEO of Tesla
Motors, donated $250,000 to the
Musk Foundation.
• The donation funded a solar
power project to bring low-cost,
clean energy to Soma, Japan.
• The location in Japan was
severely destroyed by an
earthquake and a tsunami just
months earlier.
BUSINESS PROCESSES
Management Processes
• On June 29, 2010, Tesla
• Sell their own vehicles in
company-owned showrooms Motors launched its IPO,
raising $226M
and online
• Sell their patented electric
powertrain to other car
manufacturers
•
First American car
company to go public
since Ford in 1956
OPERATIONAL PROCESSES
• No Tesla dealers
• No commissioned sales people
• No negotiation
• Transactions conducted online
• No inventory, built-to-order
• $5,000 deposit for test drive
• Wait list of months or even years to get a car
• Cars are marketed, not aggressively sold
• Marketed as a luxury sport car that can compete in the market
• Partnered with Daimler and Toyota
SUPPORTING PROCESSES &
SUPPLIERS
•
Service centers
•
Supercharger network
•
Tesla Roadster uses parts from
around the world
•
Powertrain is designed and built in
California
•
Carbon fiber body panels made by
Sotira, in France
•
These panels are sent to England,
where Lotus builds the chassis
•
Cars arrive at Menlo Park, CA, where
proprietary components are installed
•
Battery cells made in Japan, by
Panasonic, assembled in Palo Alto,
CA
FACILITIES
• Used $365M in federal lowinterest loans to build a
Model S assembly plant in
Fremont, CA
• Bought for $42M in May
2010, with an investment of
$50M by Toyota
• First two retail stores in
West Los Angeles, CA
(April 2008) and Menlo
Park, CA (July 2008)
WHY BUY A TESLA?
• They do not require routine
Oil changes.
• They do not have any tailpipe emissions
and therefore do not require any muffler or
exhaust system work.
• They do not require replacement spark
plugs, pistons, hoses or belts.
COMPETETIVE EDGE
• Dedicated employees- 6 day work week 10-12 hours a
day
• Advertising- Primarily word of mouth
• Customer feedback- Reviews promote the brand as a
quality company with happy customers
• Rising gas prices
GAS VS. ELECTRIC
INFORMATION SYSTEMS
Procurement
• Send out Requests for
Quotation to multiple
suppliers
• Identify and maintain lists of
suppliers
• Strategic sourcing approval
process
• Issue Customer Purchase
Orders for parts and tools
• Maintain day to day supplier
relationships through a
Supplier Relationship
Management System
• Asset Management System
handles purchasing of
equipment and technical
infrastructure
Source: “Tesla Systems Integration Diagram”
INFORMATION SYSTEMS
Production
• Build custom ERP solution systems
• Requirements Management System (RMS) for Tesla planning
• Product Data Management System (PDMS) to support the
engineering and preparation
• Asset Management (AMS) handles commissioning, operating,
and maintaining equipment
• Facility Management System (FMS) and Geographic
Information System for Tesla planning and building new
structure
Source: “Integrated Information Management for TESLA”
INFORMATION SYSTEMS
Project Management
•
•
•
•
Product Data Management
System allows for
coordination of work
packages by a workflow
engine which optimizes the
exchange of information
•
Process Manager creates a
Work Package and sends it
to Project Team
Project Team executes and
document tasks on the
information system which
automatically sends the
data to a Process Manager
and Database Manager
Requirements Management
System allows physicists,
engineers, safety
regulators, and
infrastructure managers to
communicate and
exchange information freely
RMS also allows engineers
and technicians to plan,
design, and construct new
infrastructure and buildings
INFORMATION SYSTEMS
Accounting and Finance
• Book payroll and benefits in
accounting system
• Organize payroll system and
accounts payable
• Accurate expense reporting
• Improve Procure-to-Pay
process
• Create and maintain proper
documentation for all business
transactions
Sources
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http://www.teslamotors.com/media/press_room.php?id=53&js_enabled=0
http://www.teslamotors.com/about
http://www.plug-in.com/tesla-motors-roadster-for-charity/
http://www.teslamotors.com/about/executives/elonmusk
http://www.marketwatch.com/story/tesla-motors-revs-up-244-million-ipo-2010-0628
http://scienceofrevenue.com/2013/01/20/tesla-model-s-the-disruptive-marketingof-an-electric-car/
http://www.mercurynews.com/business/ci_20919722/silicon-valley-milestonetesla-motors-begins-delivering-model?refresh=no
http://arxiv.org/ftp/cs/papers/0306/0306079.pdf
http://www.slac.stanford.edu/econf/C0303241/proc/pres/386.PDF
http://www.localhelpwanted.net/bayarea/job/Purchasing-Specialist--Fremont-CA94536-USA/lhw-e0-20072183
http://www.localhelpwanted.net/southbay/job/Applications-Developer--Palo-AltoCA-94309-USA/lhw-e0-20174591
http://www.localhelpwanted.net/southbay/job/Director-Accounting-Operations-Palo-Alto-CA-94309-USA/lhw-e0-19466945
http://www.indeed.com/viewjob?jk=17a94436e720c4ba