STRATEGIC MANAGEMENT

GROUP-9
SUBMITTED BY: SUBMITTED TO:

Dr. TARUN DHINGRA

JAYA NEELANSHI SETH (500074047)

YASHI JAISWAL (500073594)
AYUSH RAWAT (500077846)
SPARSH ARORA (500077748)
PARTH VERMA (500077490)
 ELON MUSK’s BIG BETS

Answer 1: Truly, I think as a board part I would decide in favour of merger with
the Solar city since, Tesla and sun powered city are both the brainchildren of the
virtuoso Elon Musk who are cooperating as one to make an all-inclusive resource
for the sustainable power source items going from creation to utilization. It is one
of the most dubious mergers where numerous speculator and writers are stressed
over the liquidity and the monetary prosperity of the organization despite the fact
that the development of the organization is noteworthy and they keep up a
respectable gross edge anyway the working costs are a lot in contrast with the
income produced, Solar city has about 2.8 billion $ in long haul obligations. This
has made a monetary calamity and made the stock drop ~80% in the course of
recent years and almost arrived at IPO levels of 2012.

Indeed, Tesla offered to get the organization estimated the firm for $2.6 billion but
the current valuation is near $ 1.77 billion, a rebate of around 30%. Moreover, the
developing retail impression of Tesla, 190 + outlets, will be utilized to likewise sell
SolarCity items. Extra collaborations can be made by strategically pitching (the
demonstration of offering an extra item or administration to the buyer) to the
current clients of In the primer consequences of my Tesla proprietor/reservation
holder/fan study, over half accept that they will be clients of Tesla Energy or
potentially SolarCity in the following 2–3 years (incorporates current clients).
What's more, this would deliver around 400 to 500 million dollars in collaborations
between the nations in the following 2 to 3 years.

Answer 2: The Gigafactory is completely incorporated modern complex where

prepared metal would enter from mines in railcars from one side and completed
battery would exit from the other. The Gigafactory would be the biggest structure
on the planet which utilizes sustainable power source, it will probably accomplish
net zero vitality. The Nevada Gigafactory is assessed to be 5$ billion-dollar
venture.

Pros:

•Stationary vitality stockpiling business – Although the Gigafactory was at first

developed to flexibly batteries for the expanded creation of the Tesla vehicles.
Tesla reported that almost 33% of the batteries made at the Gigafactory would be
devoted to its new fixed vitality stockpiling business giving an inexhaustible
wellspring of vitality stockpiling the embraced more creation the model 3 engines
and rigging box for which they needed to expand the creation limit multiple times
for example from 35 gwh to 105 gwh the greatest creation of Li-particles on the
planet.

•More to come later on Panasonic additionally contributed around 2 billion $ and is

liable for the creation of the battery cells. Tesla called to gain the sun-based city
that would deliver the photovoltaic cells that are utilized for sun based just as non-
sun-oriented boards. This task like the Nevada manufacturing plant was begun
with Panasonic that took care of the capital expense of 250 million dollars in return
for Tesla resolving to make a drawn-out arrangement to purchase PV cells created
at the plant.
•Increase popular for batteries around the world Elon musk and tesla realize that
the ever-expanding interest for batteries internationally impelled the organization
to begin dealing with 3 more giga plants after the accomplishment of the Nevada
and Buffalo.

Cons:

•Development of average mass market vehicle batteries of certain ability to furnish

an electric vehicle with execution that equals the conventional fuel-controlled
vehicle is pricey and their expense went about as a significant boundary to the
advancement of a certifiable mass-market electric vehicle. The batteries in the
vehicles cost nearly as half of the entire expense of the vehicle.

•Carefully arranged or a market near-sightedness The li-particles are as yet the best
battery innovation in presence and there probably won't be any progressions in the
following ten years anyway there is a superior option in contrast to the li-particle
cells which is the Fuel cells that give unquestionably more unrivalled range simply
like the conventional gas vehicles and the hydrogen energy units controlled vehicle
is a rising rival in the zero emanation vehicle market.

Answer 3: Elon musk is consistently open to conceivable outcomes and

development when he was asked whether Tesla would view itself as transforming
from a basically a vehicle fabricating organization to a battery producer he said it
may be conceivable as the lithium particle batteries delivered in the Gigafactory
were gotten from similar fundamental innovation as batteries utilized in phones,
tablets, PCs, and other purchaser electronic gadgets. Albeit a differing assortment
of battery advancements had developed since the creation of the battery, li-particle
turned into the most predominant vitality stockpiling innovation on the planet. The
market for electric vehicles has seen a rebellion in the most recent decade because
of the dilapidating atmosphere conditions and condition concern has resuscitated
enthusiasm for the electric vehicles. the U.S. government presented an
administrative tax reduction of $7,500 for EV buys in 2013, and, starting at 2015,
37 U.S. states offered different motivators to advance cross breed and electric
vehicle reception. In spite of the fact that is a long ways in front of its rivals in the
EV market where Model S and Model X are both contribution a 70 and 85 kwh
conveying an EPA assessed scope of 240 to 265 miles on one single charge where
as its rivals like Nissan leaf has a 24 kwh that gives the vehicle a scope of 84 miles
and BMW i3 has a 22 kwh battery giving scope of 81 miles and same is with
Volkswagen and Mercedes who have little batteries and give a range between 70 to
90 miles. Tesla collaborating with Panasonic to overhaul the battery innovation to
utilize structure factor cells that are bigger the AA battery and are utilized in
customer merchandise, Tesla is working with Panasonic so as to enhance the cells
for their vehicles.

What's more, whereas the issue worried here is the future or the vision of Tesla
how it sees itself, the organization is as of now the most vertically coordinated
vehicle maker on the planet for example (who own their own gracefully chain)
after Ford. Elon musk is flourishing to accomplish a zero emanation vehicle market
which all began with the vision to be initial a manageable vitality organization
giving new writing material stockpiling batteries that would release an entirely
different component of inexhaustible durable wellsprings of vitality and it tends to
be seen that he is extremely energetic about the giga plants he has in Nevada and
Buffalo that are basically arrangement so as to make the biggest measure of li-
particles on the planet. Elon extemporizes and extends in his manner to give this
world a maintainable future making a vertically incorporated organization that is
committed to attempt the creation of more model 3 electric vehicles alongside
utilizing 1/3 of the batteries made to add to the fixed stockpiling business.