Tesla Analysis

In: Business and Management

Submitted By ernestocascioli
Words 4272
Pages 18
Ernesto Cascioli
Linda-M. Cozzani
Foster Glenn
Fabrizio Sebastiani

Financial Statement Analysis
Prof. S. Bozzolan
LBS Groupwork, 2016

Tesla Motors, Inc._Cascioli, Cozzani, Glenn, Sebastiani 2

Table of Contents
I.

Executive Summary………………………………………………………………………......………………………3

II.

Company Description………………………………………………………………………………………………..3

A. History……………………………………………………………………………………………………………………………..3
B. Mission…………………………………………………………………………………………………………………………….4
C. Products…………………………………………………………………………………………………………………………..4

III.
Industry and Strategic Analysis………………………………………………………………………………..5
A. The Company’s Porter’s Five Forces Analysis……………………………………………………………………5
IV.

Financial Analysis…………………………………………………………………………………………………….6

A. Tesla’s General Financial Strategy…………………………………………………………………………………….6
V.

Works Cited and Consulted…………………………………………………………….………………………10

VI.

Annexes

A. ANNEXE 3. Cash Flow Tesla Motors, Inc…………………………………………………………………………..11
B. ANNEXE 2. Reformulated Income Statement Tesla Motors, Inc. ………………………………………..13
C. ANNEXE 1. Reformulated Balance Sheet Tesla Motors, Inc. ……………………………………………...14

Tesla Motors, Inc._Cascioli, Cozzani, Glenn, Sebastiani 3

I.

Executive Summary

The American electric vehicle company Tesla Motors, Inc. (TSLA) embodies an innovative manufacturer of premium electric vehicles (EV) and electric vehicle powertrains, while representing the most disruptive company in the automotive industry. Their current product portfolio includes the Roadster, the Model S, the Model X and the Model 3.
In the first part of the paper we are in going to analyze the company itself, their mission and the products they made; since…...

Similar Documents

Tesla Stock Analysis

...MEMORANDUM Company Background Tesla Motors, Inc. was founded in 2003 by South African entrepreneur Elon Musk, and is based in Palo Alto, California. The company designs, manufactures, and sells electric cars, and is known for introducing the first fully electric sports car, the Tesla Roadster, in 2008. It was priced at $109,000 and could travel more than 200 miles per charge, twice as far as its competition. Tesla stopped producing the Roadster in 2011 as its contract with the key supplier expired, and launched the Model S in June 2012. The car ranges from $50,000 to $100,000 and can travel as far as 300 miles, depending on battery-size as well as the driver’s average speed. *Image adapted from Tesla Motors’ official website Furthermore, it takes about an hour to charge the car at a cost of $1.36 (given that you pay the national average of $0.12/kilowatt hour), and there are currently eight Supercharging stations across the nation. Tesla estimates to build another 19 stations during the summer of 2013, and cover 98% of the U.S. and Canada by 2015. The Supercharger allows drivers to charge for free and at a rate twice as fast as regular outputs (Tesla Motors). Elon Musk has said from day one that his main goal for the company is to drive forward the electric car revolution and create a mass-market car costing $30,000. However, that will take time. Musk and his team have been criticized for delaying production, and before May 2013 the company had made......

Words: 1424 - Pages: 6

Tesla Analysis(Pestel Tows Swot ...)

...responsibilities : profit, planet, people Short financial analysis : * Decrease of growth of sales (hefty price tag) * Increase of cost of goods sold (high prince of battery for example) * Total revenue tends t decrease since the crisis * Cash flows issues (important loan, loose of money, lack of money to invest) * Loose of market share (more and more new entrants) * Problems of solvency (need of investors) SWOT : * Strenghts | Weaknesses | High Demand for Tesla ProductsNiche Market: They developed the first practical fully electric sports car. Only all Electric commercial luxury/sports car (First mover advantage).Widely recognizable brand, due to both marketing efforts as well as the visual appeal of the company’s offeringsExcellent vehicle designGood engineering and technology research capabilityAble to raise large amounts of capital Strong technological expertise in the area of electric transmissions & drive train: designs and builds many of the components in its cars, including the power electronics, motor and battery packs. Ability to  develop vehicles completely in house including the sub-assemblies requiredAlso a strong supplier to other manufacturers like Toyota Patents on most of the drivetrain and battery technologies utilized in their cars, allowing Tesla to remain well ahead of competitors | Low Brand Awareness: Few consumers distinguish between a hybrid and electricLow amount of Tesla service departmentsA very small......

Words: 1512 - Pages: 7

Tesla Motors Swot Analysis

...TESLA MOTORS SWOT Analysis Anandita Jindal Tesla Motors is a car company that designs, manufactures and sells electric vehicles. Ian Wright, JB Straubel, Marc Tarpenning, Martin Eberhard and most notably Elon Musk founded this public company in 2003. Its headquarters is located in Palo Alto, California, with its main production plant in Fremont, California. The company was named after Nikola Tesla, a renowned electrical engineer and physicist. Its goal is to increase the number of EV’s (Electric Vehicles) available to the market to help make it more mainstream. Currently, Tesla motors have produced two models, the Tesla Roadster and the Model S, and has unveiled a third, the Model X. In the Future, the company plans to produce family-sized minivans, electric SUV crossovers, and electric fleet vans for municipal governments. Other business includes collaborations with other companies such as Toyota, Daimler, Freightliner Trucks and Panasonic. Although the company has earned much success, it has hit its share of bumps along the way such as lawsuits, recalls and founder disputes. The current CEO, Elon Musk, also holds the title of Product Architect. Musk is also a co-founder of PayPal and Space Exploration Technologies as well as the chairman/CEO of SpaceX and chairman of SolarCity. It’s hard to say if Elon Musk is firstly an entrepreneur or an engineer. Musk has had great success and became a multimillionaire in his late twenties when he sold his first startup company,...

Words: 3107 - Pages: 13

Tesla Analysis

...Sarah Lin Analyzing an Annual Report Walgreens 2013 Annual Report Analysis Walgreens is the largest pharmacy retail chain in the United States since 1901. It had 2013 net sales for $72.2 billion and net earnings for $2.5 billion. The company has 248,000 employees, and 8,582 locations in the world. Walgreens provides access to consumer goods and services, plus pharmacy, photo studio, health and wellness services in the United States .The mission statement of Walgreens is about more than just drugs for sick people and positions the company as a retailer of wellness. At Walgreens, everything is designed to help people get, stay and live well. In its 2013 annual report, Walgreens : features personal stories and photos of shoppers who had satisfied experiences with Walgreens to show investors that Walgreens create a Well Experience by transforming the customer service across all touch points, channels and formats; Highlights in text and photos how people benefits with Walgreens health services to show investors that Walgreens transform the role of community pharmacy to take social responsibility ; and emphasizes in text and photos Walgreens’ international reach to show investors that company has established an efficient global platform. By focusing efforts on these strategies, Walgreens is restoring the traditional drugstore model for its success. Walgreens use personal stories and photos of shoppers who had satisfied experiences with Walgreens to show investors that......

Words: 854 - Pages: 4

Tesla Analysis

...Financial Statement Analysis for Tesla Motors Introduction There are a lot of automobile companies in the world and some of them have special technologies of their own. The technology industry is not as competitive as other industries. It requires highly technological innovations to operate efficiently. As long as companies keep coming up with new creative design ideas, the industry will keep producing products and making profit, but it is not easy for any company, even Tesla Motors. Tesla Motors successfully used battery technology on their automobiles, which leads the company in the electric automaker field. In the automotive industry, some auto companies use specialized technology of their own. Tesla Motors is one of these companies, which has successfully used its battery technology on automobiles, and has helped the company become very successful. Company Overview Tesla Motors, Inc. is an American company that designs and sells electric cars and electric vehicle power train components. It is a public company whose stocks trades on the NASDAQ stock exchange under the symbol TSLA. Tesla Motors first gained world’s attention according to its production of the Tesla Roadster, the first fully electric sports car. The company's second vehicle is the Model S, which is a fully electric luxury sedan. Tesla Motors also sells electric power train components, including lithium-ion battery packs. Its CEO, Elon Musk, has said that he envisions Tesla as an......

Words: 2007 - Pages: 9

Tesla Strategic Analysis

...SECTION I: Introduction/Executive Summary Tesla Motors, Inc. is an American company that designs, manufactures and sells electric cars and electric vehicle powertrain components. Named after the scientist Nikola Tesla, Tesla Motors ($TSLA) was founded in 2003. Exactly who founded Tesla Motors can be discussed, but it was probably by a group of intrepid Silicon Valley engineers Martin Eberhard, Marc Tarpenning, and Ian Wright. Their goal was to build an electric vehicle with the same performance as a Porsche and more environmental friendly than a Toyota Prius. The problem was that the founders didn't have the money needed to realize their idea, so they contacted Elon Musk, who decided to invest in the company. Elon Musk had earlier founded the companies Zip2, PayPal, and SpaceX. The difference between Elon Musk and the founders was that Elon Musk wanted Tesla Motors to become an improved General Motors with several car models, while the original founders wanted to design only a sports car. Elon Musk became interested in electric cars because he is well aware of peak oil. The idea behind peak oil is that oil is a finite resource we will run out of. Elon Musk believes the production of oil will begin to decrease after year 2020. As the production of oil decreases, the price of oil will increase and more people will buy electric cars SECTION II: Current Situation Tesla Motors headquarters is in Palo Alto, California. Its goal is to speed up this transition from gasoline cars......

Words: 8262 - Pages: 34

Tesla

...Tesla: Supercharging the Future by Akash G. Nandi An honors thesis submitted in partial fulfillment of the requirements for the degree of Bachelor of Science Undergraduate College Leonard N. Stern School of Business New York University May 2013 Professor Marti G. Subrahmanyam Faculty Adviser Professor Joseph Foudy Thesis Adviser 1 I. Introduction...................................................................................................................Page 4 A. The Inefficiency of Cars Today B. Thesis Objective C. Thesis II. Research and Resources...............................................................................................Page 7 A. Research Framework B. Research Perspectives C. Resources and Data III. Tesla in Context.............................................................................................................Page 9 A. The Global Auto Industry B. Tesla: The Innovative Disrupter C. Sparking the Electric Revolution IV. The Man Behind the Machine...................................................................................Page 12 A. Elon Musk B. Entrepreneur from the Start C. Space X V. Tesla Motors Overview...............................................................................................Page 15 A. Company Offerings B. Phase I. Roadster C. Phase II. Models S and X 2 D. Phase III. Project BlueStar VI. How It Works: The Model......

Words: 12024 - Pages: 49

Market Analysis: Tesla

... …………………………………….        4   Company  History  &  Present  Situation  ………………        5   Elon  Musk’s  History  …………………………………..        6   Business  Model  &  Retail  Strategy  ……………….........        7   Product  Mix  &  Marketing  Activities  ………………….        9   The  4  M’s  of  Advertising  ……………………………….      10   Internal  Analysis  …………………………………………………....      11   -­ -­ -­ Organizational  Culture  …………………………………      11   Organizational  Structure  ……………………………….        12   Unique  Resources  and  Capabilities  …………………….        13   External  Analysis  …………………………………………………....        14   -­ -­ -­ Customers  and  Competitors  …………………………….        14   Porter’s  5  Forces  …………………………………………        16   PEST  Analysis  ……………………………………………        18   SWOT  Analysis  ……………………………………………………….      21   Innovation  ……………………………………………………………..      22   Strategic  Framework  &  Strategic  Alternatives  ……………………..      23   Implementation  ………………………………………………………..      24     3       Executive  Summary​   : The  intent  of  this  project  was  to  learn  more  about  Tesla’s  present  situation  and   learn  about  what  their  goals  are  for  the  future.  We  chose  Tesla  for  this  project  because   collectively,  we  feel  that  it  is  one  of  the  most  groundbreaking  companies  to  emerge  in  our   lifetimes.  Tesla’s  commitment  to  creating  a  mass-­market  zero  emissions  vehicle  has   yielded  successful  results  that  are  helping  to  shape......

Words: 6189 - Pages: 25

Swot Analysis for Tesla

...nging compelling  mass market electric cars to market as soon as possible”   ­ “Move from a mine­and­burn hydrocarbon economy towards a sustainable solar  electric car”  SWOT  Strengths  ­ CEO (Elon Musk) compares Tesla to the marine corp saying like the marines, tesla  only recruits the best  ­ CEO has good track record, founded PayPal and SpaceX as well as being a car  enthusiast  ­ Tesla will only sell electric cars and nothing else, no hybrids, diesel, or ethanol  ­ Tesla Superchargers (charging stations) are 16 times faster than other public charging  stations  Weaknesses  ­ CEO Elon Musk is CEO of tesla as well as SpaceX which can be stressful and risky as  he is focused on two different companies at one time.  ­ Tesla only sells electric cars which many people are still skeptical about.  ­ The Tesla model S is the only current model   ­ Limited operating history, only been in business 10 years  Opportunities  ­ The world is running out of oil therefore people will have no choice but to turn to  electric cars  ­ Can use their battery technology for other purposes such as storing power from solar  panels  ­ SpaceX which Elon Musk is also the CEO to has a long term goal of colonizing Mars.  he has been quoted saying “For sure Tesla would make the first people transporter on  Mars!”  Threats  ­ As the idea of electric cars becomes more fond, other companies with higher financial  resources are exploring the alternative route  ­......

Words: 323 - Pages: 2

Tesla Motors Strategic Analysis

...Tesla Motors Strategic Analysis Prepared by: Lexen Beran Brenna Hayes Travis Heidemen Jenna Hughes Jake Latimer In Partial Fulfillment Of the Requirements For: MANGT 595: Business Strategy M/W/F at 12:30pm   1   Table of Contents Table of Contents…………………………………………………………………...……2 Executive Summary……………………………………………………………………...3 Introduction………………………………………………………………………………4 External Analysis………………………………………………………………………...5 Internal Analysis…………………………………………………………………………8 Strategic Challenges………………………………………………………………….…10 Strategic Recommendation……………………………………………………….……11 Implementation Plan……………………………………………………………...……13 Conclusion………………………………………………………………………………14 Bibliography……………………………………………………………….……………15 Appendices………………………………………………………………………………16   2   Executive Summary Tesla’s uniqueness and innovative products has served as a catalyst to an entire industry seeking an alternative to the complacent market of gas-powered only vehicles. But what strategies where utilized in their great success? How will the firm continue to innovate after the growth stage? This report will introduce you to Tesla and its current operating environment by examining the industry in which it operates via internal and external analysis. The report will tell of how Tesla pioneered technologies that were mostly untapped and unavailable to the masses. By examining the resources and capabilities of the firm, it will better help to delineate the...

Words: 4466 - Pages: 18

Case Analysis - Tesla

... TUGAS KELOMPOK MANAJEMEN STRATEGI CASE ANALYSIS: TESLA MOTORS: CHARGING INTO THE FUTURE? [pic] KELAS G-141, GROUP 5 DARIL BENAYA YOYADA B. - 1406513426 DEA AYESHA WIDYASWARI - 1406513451 DIAH PURNAMA SARI - 1406588830 DIAN MARSISKA - 1406588843 HENDRAWAN - 1406513754 PROGRAM MAGISTER MANAJEMEN FAKULTAS EKONOMI UNIVERSITAS INDONESIA 2015 TESLA MOTORS: CHARGING INTO THE FUTURE? A. CASE SYNOPSIS Tesla Motors merupakan perusahaan yang ditemukan pada tahun 2003 di Silicon Valley, berfokus pada industri desain, manufaktur, dan penjualan mobil elektrik tanpa emisi serta bagian rangkaian penggerak listriknya, semacam baterai lithium-ion, yang nantinya dibeli dan digunakan oleh pembuat mobil lainnya. Sejak didirikan, Tesla Motors telah melakukan terobosan-terobosan signifikan dalam pasar kendaraan elektrik / electric vehicle (EV) melalui teknologi rangkaian penggerak listrik. Tesla tidak menjadi satu-satunya manufaktur EV; Chevy dan Toyota merupakan pesaing terberat Tesla dalam pasar EV. Sampai saat ini, kendaraan yang diproduksi Tesla memiliki rentang jarak kendara yang lebih luas dan kinerja yang lebih baik, tetapi ancaman dari para pesaing ini tentunya tidak bisa diabaikan begitu saja. Tesla memiliki keterbatasan dalam kemampuannya memproduksi kendaraan disebabkan oleh ukuran dan aksesnya kepada sumberdaya yang membuatnya mengalami kerugian dibandingkan para pesaingnya. ...

Words: 2357 - Pages: 10

Analysis on Tesla Motors

...Tesla Motors, Inc. 8 Step Case Analysis Method Khushboo E Jahan Marissa Shotwell-Tabke Guojun Zhang GBA 517 Dr. Kevin Moncrief Fall 2015 Table of Contents Introduction pg. 1 Company Background pg. 1 Products pg. 2 Business Mission pg. 3 Marketing Objectives pg. 4 Strategic Issues pg. 5 Promotion pg. 5 Pricing pg. 6 External Environment pg. 6 Distribution pg. 10 Constraints pg. 12 Firm Specific pg. 12 Limited Product List pg. 12 Limited Manufacturing capacity pg. 13 Distribution & Service Network pg. 13 Limited Exposure in Foreign Market pg. 14 Lithium Ion Battery Safety pg. 14 Industry Specific pg. 15 Fluctuating Foreign Exchange Rates pg. 15 Supply Chain Providers pg. 15 Future Growth Depends Upon Consumers’ Willingness to Adopt Electric Vehicles pg. 16 Environment and Safety Laws & Regulations pg. 16 SWOT Analysis pg. 18 Findings pg. 23 Finding #1 pg. 23 Finding #2 pg. 25 Finding #3 pg. 25 Solutions pg. 26 Solution #1 pg. 26 Solution #2 pg. 26 Solution #3 pg. 26 X. Recommendation and Justification pg. 28 XI. Implementation and Gantt Chart pg. 30 Implementation Time Table pg. 30 Gantt Chart pg. 32 XIII. References pg. 33 List of Figures Figures Figure 1......

Words: 4909 - Pages: 20

Tesla Analysis

...External Analysis PESTEL Analysis In order to distinguish and break down the fundamental elements of the company’s external environment it is suggested to use PESTEL analysis (Academy, 2015). Figure below illustrates all crucial external factors, which need to be considered while doing external analysis. PESTEL stands for: Taken from: http://www.professionalacademy.com/blogs-and-advice/marketing-theories---pestel-analysis In the following paragraphs, each factor is going to be analyzed separately. Political By selling autos in many countries of North America, Asia andWestern Europe (Tesla, 2014), the companyneeds to manage any political issues affecting its business operations. For example,one of the main political aspects influencing on the industry is ecological assurance lawsto stimulate the production of more environmentally friendly vehicles to meet the emanation levels(Environmental-protection.org.uk, 2014). The next essential aspect is US government vitality advance projects for innovative work of new vehicle advances (Department of Energy, 2014). For this situation, numerous automobile producerswill be occupied with entering the new business sector in automobile industry. Economical Nowadays, US market is most attractive for Tesla Motors, because of the economic growth and level of GDP (Tradingeconomics.com, 2015). Figure 1 below illustrates the growth rate of US GDP from 2013 to 2015. Figure 1. US GDP growth rate (%). (Trading Economics, 2015) In addition,...

Words: 7227 - Pages: 29

Tesla Swot Analysis

...Tesla Motors: SWOT Analysis Tesla Motors designs, develops, manufactures and sells high performance fully electric vehicles, advanced electric vehicle, powertrain components and stationary energy storage systems. Political, economic, socio-cultural and technological factors have influenced Tesla in complex ways since Tesla is a big player in the EV industry – one of the non-traditional automobile industry segments. The political factors have mostly favored Tesla since the government gives subsidies, tax rebates for EV manufacture. The general economic growth in the US economy have favored Tesla but decreasing oil prices and increasing labor prices have acted as threats to Tesla. The go green concepts have favored Tesla but unfamiliarity around the EV technology have posed threats to Tesla. However, limitations by way of battery technologies and charging of batteries have posed threats to Tesla even though technological developments are taking place in the EV industry around battery and charging technologies The overall threats of micro forces is medium based on porter’s 5 forces analysis. The threat for the substitutions is high and threat from rivals is medium due to few rivals who can match the quality of Tesla cars. There seem to be least threats from suppliers since they are not specialized in EV industry and buyers due to direct sales. More details are provided in exhibit 2 as given below The company has established a good value chain by its own network of......

Words: 5754 - Pages: 24

Tesla Motors Business Analysis

...Tesla Motors 3500 Deer Creek Palo Alto, CA 94304 650-681-5000 650-681-5101 I. I. Background and Introduction The focus of this analysis is on Tesla Motors and the electric vehicles they design, develop, and manufacture. Tesla Motors was incorporated in 2003 and using technology developed at the headquarters in California the company introduced the Tesla Roadster in 2008 (Tesla Motors, 2010b). On June 28, 2010 the company filed an initial public offering that was accepted by the SEC. They have also become business partners with Toyota Motor Corporation to develop an electronic version of the Toyota RAV4 to be sold in 2012 (Tesla Motors, 2010b). The importance of this analysis is two-fold. First, if a company can successfully develop a fully electric vehicle that is affordable and has mass market appeal it would mark a realistic solution to the diminishing worldwide oil supplies. Second, the technology that would be developed could be used as a springboard for the entire automotive industry. As with any business that is being hinged on new technology, there are significant risks and issues that could potentially be detrimental to the company. Being a new company, there is a very limited operating history for potential investors to go by (Tesla Motors, 2010b). Therefore, future earnings cannot be predicted based on past earnings. The company is losing money and in the SEC filing for the last quarter they state that they expect to keep losing money......

Words: 15318 - Pages: 62