RCC

CASE CASE-
CHALLENGE BOOKLET

2023
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Introduction

On January 8, 2021, Tesla Motors India and Energy Private Limited was officially registered
in Bangalore. Tesla's foray into the Indian market has been anticipated for quite some
time. Tesla intends to import electric vehicles first, before moving into manufacturing in
India, where four Tesla models have been approved by the Indian government and are
expected to be released soon. Due to favourable government regulations, growth in
demand among middle-aged urban consumers, and the continued development of suitable
infrastructure, India's electric vehicle industry has exploded in recent years.

"The government will make sure the production cost for Tesla will be the lowest when
compared with the world, even China when they start manufacturing their cars in India. We
will ensure that," said Nitin Gadkari (Minister of Road Transport and Highways). He also
added a note of urgency, stating that he believes Indian businesses would be building
electric vehicles to compete with Tesla shortly. Gadkari thinks that electric vehicles made by
Indian contemporaries would match the Tesla Standard and that Tesla should move forward
without delay. Gadkari wants India to become a prominent manufacturer of electric vehicles,
and he wants Tesla to develop automobiles in the nation.

Tesla Inc. and the Indian government have initiated negotiations after the corporation was
hit with high import tariffs that nearly doubled the cost of its goods. The Indian
government wants Tesla to relocate its manufacturing operations to the country. Tesla, on
the other hand, continues to confront significant problems as a result of high import tariffs
and fierce competition in India's price-driven market.

Tesla’s Story
Tesla was founded in 2003 by the engineers Martin Eberhard and Marc Tarpenning in San
Carlos, California. It was originally called Tesla Motors, a name the company changed in
2017. Surprisingly, Elon Musk, the first name that pops into many a mind when Tesla is
mentioned, wasn’t actually with the company since the beginning. He joined the Board of
Directors in 2004 with an investment of $30 million.

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Tesla's long-term strategy was evident even before any models were introduced. To quote
Elon Musk in 2006, “Tesla was to enter at the high end of the market, where customers are
prepared to pay a premium, and then drive down market as fast as possible to high unit
volume and lower prices with each successive model.”

Most automakers who later moved into EVs took a similar approach, with Volvo releasing
its performance-oriented Polestar line before more affordable EVs, and Volkswagen
releasing performance EVs under its subsidiaries, Porsche and Audi, before
manufacturing its mass-market vehicle, attesting to the business model's success.

Tesla's first flagship model, the Model S, a sleek luxury sedan with a starting price of
$79,990, was unveiled in 2012. Since then, the Model S has earned glowing reviews from
both the trade press and the general public. Consumer Reports gave the electric plug-in car
a near-perfect score of 99 out of 100, calling it "the best car ever tested."

The Model S, on the other hand, was simply the beginning, a predecessor to Musk's ultimate
goal, a mass-market vehicle. With the introduction of the Model 3, priced at $35,000, Tesla
inched closer to this aim. When compared to the $40,000 average cost of a new automobile
in the United States, Tesla's Model 3 is a fantastic match as the company's first mass-
market electric vehicle. With over 800,000 units sold, the Model 3 is easily not only Tesla's
but the world's best-selling electric vehicle. Even when compared to typical fossil fuel-
powered vehicles, the Model 3 remains the world's 16th best-selling vehicle.

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Tesla’s Catalog
The Tesla Model S is an all-electric five-door liftback and was initially introduced in 2012. In
2013, the Model S became the first electric car to top the monthly new-car-sales ranking in
any country, The Model S was the top-selling plug-in electric car worldwide in 2015 and
2016, although it was later surpassed by the Model 3.

The Model 3 is an electric fastback midsize four-door sedan. The official launch and delivery
of the first 30 cars took place in July 2017. The Model 3 was marketed as being more
affordable and since early 2020, the Model 3 is the best-selling electric car in history. The
Tesla Model X is a mid-size all-electric luxury crossover made by Tesla. The Model X is
classified as an SUV, and shares ~30% of its content with the Model S.

The Tesla Model Y is an electric compact crossover utility vehicle (CUV). Tesla unveiled it in
March 2019, and it shares an estimated 75% of its parts with the Tesla Model 3. The Model
Y fills a smaller and less expensive segment than the full-sized Tesla Model X.

Elon Musk's automaker sells just 4 models currently, but it has grand plans to expand its
offerings soon. Moving forward, looking at the alternate markets that Tesla stands to
enter, may add additional insight into their imminent Indian foray.

Cybertruck:
Despite the divisive splash that was created at the flashy reveal of this project, the
Cybertruck has attracted more than 500,000 non-binding preorders, according to Musk. It
will come in three configurations and will offer up to 500 miles of range. Originally meant to
release earlier, the launch has been delayed to 2022 and is on the way to being Tesla’s sole
offering in the light-duty truck market.

Tesla Semi:
The potential of a battery-powered tractor-trailer has piqued the interest of large retailers
and shippers looking to save money on fuel and maintenance. Tesla claims that the Semi
will eventually be entirely autonomous, allowing fleet owners to run trucks for extended
periods and save money on manpower. PepsiCo, Walmart, Anheuser Busch, UPS, and
FedEx have all placed orders for the Semi, which Tesla estimates will cost $180,000 for a
500-mile vehicle. A $150,000 vehicle with a 300-mile range will also be offered. Originally
teased in 2017, after several delays, the Semi is slated to enter production in 2022.

The Unnamed “Model 2”:

Tesla has been steadily decreasing the price of its vehicles for years, but the EVs are set to
get even cheaper soon. During the 2020 Tesla Battery Day conference, Elon Musk confirmed
that its next car will be a hatchback, becoming the smallest and comfortably the cheapest
Tesla yet and would hit the market "about three years from now." Musk has admitted
himself that punctuality isn't his strong suit, so it's fair to take that timeline with a grain of
salt. Tesla however appears to be making headway on the plans. The company aims to
complete a research and development centre in China that will develop the budget EV by
the end of 2021, Tesla China President Tom Zhu said in a February interview with Chinese
media.

Roadster:
Originally revealed in 2017, the Tesla Roadster was aimed to launch in 2020. However, it’s
currently slated to enter production in 2022 for $200,000. Musk claims that this 4-seat
supercar would be the fastest production car ever made, and would be capable of travelling
620 miles on a single charge.

QUESTION
Ques - Your Client is Tesla and as part of their expansion strategy, they are looking to enter
the Indian market. You are advising them on this activity that whether they should enter or
not and if yes then how should they go about it?

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Rating Criteria and Qualification Requirements

The teams will be evaluated on the basis of the following criteria:

Quality of Analysis
Creativity
Feasibility of the Solution
The overall Presentation of the Case

Note

Teams must submit their presentation by 11:59 PM, 23rd January.

Submission should be in PPT format (Max 15 slides excluding the introduction
and final slide) with a PDF copy of the same presentation)(Note: The number of
slides is not a criterion of judgement, only exceeding the prescribed limit will
lead to a penalty.)
The solutions should be mailed to consultingclub.rcc@ramanujan.du.ac.in with
subject <RCC Case Challenge 2023 Submission> and attachments as <team
name>.pptx and <team name>.pdf
Relevant information can be added for the analysis from the web or other
suitable resources.
Any form of plagiarism will be heavily penalized.