Tesla Motors: Disrupting the

auto industry
Group 3
Alankrit Bamrara - 239 Shivali Chandra - 496
Mansi Agarwal - 159 Khushal Agarwal - 448
Anuj Balodi - 248 Vaibhav Jain - 510
Keerthana Pallerla - 151
Strategic roadmap of Tesla
Push
Long term automation
Founded Financial Buys a German
plan that long term
Decided Open engineering firm that
Tesla was
plan would introduce
instability specializes in designing
incorporated in 2003
affordably priced family
source systems for
to produce entirely Secures a $40
electric car cars to speed up solar million financing patents manufacturing
electric economy commitment helping In order for the automation
it avoid bankruptcy electric vehicle
category to grow
2003
2006 2016
2008 2013
 Tesla’s strategic goals and objectives
5-Point Master Plan

Phase 1 Phase 2 Phase 3

Use that money to build an Use that money to build an even
Build a sports car
affordable car more affordable car
Launch of Roadster in 2007
Launch of Model S in 2013

While doing above, also provide zero emission electric power generation options

Don’t tell anyone

Focus on sustainability
Customers are

Drive down market as fast

as possible to higher unit
volume and lower prices
willing to pay a High Help expedite the move from mine-and-burn hydrocarbon

with each successive

premium end of economy towards a solar electric economy.
market
Tesla Motors Lithium-ion cells: Recyclable. 100,000 mile

model
design life. Landfill safe. Not hazardous.
All free cash Power plant emissions: Higher efficiency per megajoule.
flow is plowed Lesser CO2 emissions.
back into R&D
Becoming energy positive: Comarketing sustainable energy
Elon Musk's Secret Tesla Motors Plan (Just between you and me)
products (SolarCity)
Competitive Advantage
Direct selling to
customers Supercharger network
Tesla focuses more on the
customer experience In order to increase
Presence of “service plus” product adoption
retail centers

Innovative and Diversification

new technologies
Expanded into business
Tesla runs on the motto of like solar panel
constant innovation in manufacturing & energy
technology storage

Differentiation Tesla’s
branding
Developed a reputation
Create differentiation
to produce superb
through environment
products which amuse
friendliness
customers
 Automobile Industry Analysis – 4 key trends disrupting mobility with significant impact
Core MaaS Value Chain
Fleet Mgmt.
Vehicle Fleet Fleet Back-end and
Business SW &
Supply Ownership Operations user platform
Model Analytics Key Mobility Trend Driving Disruption

Vehicle/Tech
Provider Electrification
Own new
mobility assets ~20% of new vehicles in 2030 will be EV

• Cost advantage
Fleet
EVs beat ICE on total cost by 2027
Management • 250+ EVs announced by OEMs with
range > 400km
Mobility
• Reduced adoption barriers
platform/ More public charging stations, government
aggregator incentives
E2E owner and • Changing user sentiment EVs
operator increasingly popular

Future of Shared Mobility Automation Connectivity

Mobility
Urbanization Congestion & Technological Consumer Technological Strong
pollution Readiness Adoption Readiness Investments
❖ 68% of population ❖ 8.3% annual ❖ Large-scale ❖ 10-15% urban ❖ More than ¾ of ❖ Big tech moves
living in cities by increase in deployment of residents willing cars connected in into the
2050 vs. 55% in congestion SD cars (L4+) to try SAEV 2025 automobile
2018 expected by
2025/6
 TESLA SWOT ANALYSIS
• Large motor companies devoting more
• Scale of operations, no resources to developing electric cars and
economies of scales, low sales cars fuelled by other alternatives
volume • Increasing Internal Combustion Engine
• Dependent on continuing efficiency
innovation • Limited EV support Infrastructure
• Financial profile • Concentrated industry
• Deep pocket competition • Loss of government subsidies
Strengths Opportunities
Weakness • Growing market Threats
• Product: fastest and most • Increasing oil & gas prices
energy-efficient electric car • Rising consumers sentiment •
on the market Government support
• Innovative technology • Young industry with no set
• Brand image standards
• Positive strategic • Large International market
partnerships potential
• Increasing awareness and
support for environmentalist
 Tesla Partnerships
Partner Industry Current Status Benefit

Panasonic Battery Production Ongoing Increase technological innovation in

battery life, durability

Mobileye Artificial Intelligence Dissolved Developed its self-driving feature -

AutoPilot

Nvidia Chip Manufacturing Dissolved Improving its self-driving feature -

AutoPilot

Hertz Car Rental Dissolved Increase the reach of Tesla Cars

Tesla has difficulty sustaining long term partnerships with existing players. Out of the major technological and strategic
alliances that it formed with established industry giants, very few have continued to exist.
The main reason for the fallout in these alliances is that Tesla first enters an industry through partnerships but gradually tries
to capitalize on that sector by vertical integration. While this is beneficial to Tesla as it is able to save costs through vertical
integration, it becomes problematic as other firms are vary of partnering with Tesla and sharing their technology with it.
The Road Ahead

3 pronged focus for growth strategies

Affordability Efficiency Technology

Optimising battery
Competitive pricing Innovative leaps in A.I.
manufacturing

• Tesla is planning to expand • Tesla’s Dojo

• Tesla has manufactured its
to developing economies by supercomputer will
own battery tablets 4680,
reducing prices to match automatically and
which will be easier and
their competitors. continuously train and
56% cheaper to manufacture
improve the company’s FSD
• Since China is assumed to • By 2030, Tesla hopes to be software
remain the biggest market producing 3 TW Hours of
for EV, Tesla’s prices in batteries with an increased • Tesla announced the
China will be below the rest battery range by 54% development of humanoid
of the world in the next robot Optimus, taking its
decade expertise beyond the vehicle
fleet