iii

EXECUTIVE SUMMARY

iv
V
 LIST OF FIGURES

Figure No. Title Page No.

vi
 LIST OF SYMBOLS AND ABBREVIATIONS

Symbol Explanation

INTRODUCTION
1.1 THE COMPANY - TESLA MOTORS, INC

Tesla, Inc is an American automotive and clean energy company based in Austin, Texas. Tesla

designs and manufactures electric vehicles (electric cars and trucks), battery energy storage from
home to grid-scale, solar panels and solar roof tiles, and related products and services. Tesla is
one of the world's most valuable companies and remains the world's most valuable automaker
with a market capitalization of more than US $900 billion. The company had the most worldwide
sales of battery electric vehicles and plug-in electric vehicles, capturing 23% of the battery-
electric (purely electric) market and 16% of the plug-in market (which includes plug-in hybrids)
in 2020. Through its subsidiary Tesla Energy, the company develops and is a major installer
of photovoltaic systems in the United States. Tesla Energy is also one of the largest global
suppliers of battery energy storage systems, with 3.99 gigawatt-hours (GWh) installed in 2021.

Tesla was founded in July 2003 by Martin Eberhard and Marc Tarpenning as Tesla Motors, the
company's name is a tribute to inventor and electrical engineer Nikola Tesla. In February 2004,
via a $6.5 million investment, Elon Musk became the largest shareholder of the company. He has
served as CEO since 2008. According to Musk, the purpose of Tesla is to help expedite the move
to sustainable transport and energy, obtained through electric vehicles and solar power.

CHAPTER-1
Motors

Tesla makes two kinds of electric motors. Its oldest design in production is a three-phase four-
pole alternating current induction motor with a copper rotor (which inspired the Tesla logo),
which is used as the rear motor in the Model S and Model X. Newer, higher-
efficiency permanent magnet motors are used in the Model 3, Model Y, the front motor of 2019-
onward versions of the Model S and X, and are expected to be used in the Tesla Semi. The
permanent magnet motors increase efficiency, especially in stop-start driving.

Automotive products
As of January 2022, Tesla offers four car models: Model S, Model 3, Model X and Model Y.
Tesla's first vehicle, the first-generation Tesla Roadster, is no longer sold. Tesla has plans for
a second-generation Roadster, a semi-truck, and a pickup called the Cybertruck.

In production

1. Model S
2. Model X
3. Model 3
4. Model Y

Future products

1. Roadster (second generation)

2. Tesla Semi
3. Cybertruck

1.2 BUSINESS STRATEGY

At the time of Tesla's founding in 2003, electric vehicles were very expensive. In 2006, Elon
Musk stated that Tesla's strategy was to first produce high-price, low-volume vehicles, such as
sports cars, for which customers are less sensitive to price. This would allow them to
progressively bring down the cost of batteries, which in turn would allow them to offer cheaper
and higher volume cars. Tesla's first vehicle, the Roadster, was low-volume (fewer than 2,500
were produced) and priced at over $100,000. The next models, the Model S and Model X, are
more affordable but still luxury vehicles. The most recent models, the Model 3 and the Model Y,
are priced still lower, and aimed at a higher volume market, selling over 100,000 vehicles each
quarter. Tesla continuously updates the hardware of its cars rather than waiting for a new model
year, as opposed to nearly every other car manufacturer.

Robotic manufacturing of the Model S at the Tesla Factory in Fremont, California

Unlike other automakers, Tesla does not rely on franchised auto dealerships to sell vehicles.
Instead, the company directly sells vehicles through its website and a network of company-
owned stores. The company is the first automaker in the United States to sell cars directly to
consumers. Some jurisdictions, particularly in the United States, prohibit auto manufacturers
from directly selling vehicles to consumers. In these areas, Tesla has locations that it
calls galleries that the company says "educate and inform customers about our products, but such
locations do not actually transact in the sale of vehicles." In total, Tesla operates nearly 400
stores and galleries in more than 35 countries. These locations are typically located in retail
shopping districts, inside shopping malls, or other high-traffic areas, instead of near other auto
dealerships. As of January 2022, Tesla does not pay for direct advertisement.
 The Tesla Patent Wall at its headquarters was removed after the company announced its patents are part of
the open source movement.

Tesla has a high degree of vertical integration, estimated at 80% in 2016. The company produces
vehicle components as well as building proprietary stations where customers can charge their
vehicles. Vertical integration is rare in the automotive industry, where companies typically
outsource 80% of components to suppliers and focus on engine manufacturing and final
assembly. Tesla used low-cost strategy as a business approach, with which they can expand their
business into a broader market by offering standard technology items.

Tesla generally allows its competitors to license its technology, stating that it wants to help its
competitors accelerate the world's use of sustainable energy. Licensing agreements include
provisions whereby the recipient agrees not to file patent suits against Tesla, or to copy its
designs directly. Tesla retains control of its other intellectual property, such as trademarks
and trade secrets to prevent direct copying of its technology.
 In-Industry Report at Vibro Tech

CHAPTER-2

REVIEW OF THE LITERATURE

1. The globalization of Tesla Motors: a strategic marketing plan analysis, Mangram,

M.E(2012)

This case study provides analysis of the strategic marketing plan of electric vehicle
manufacturer, Tesla Motors.This marketing approach is counter to the traditional automobile
industry's marketing management approach which favors mass marketing and mass production.
A qualitative, exploratory research approach was adopted for this analysis.Key findings conclude
that: (1) the battery electric vehicle industry is poised for explosive growth; (2) Tesla Motors is
uniquely positioned to capitalize upon this growth opportunity; and (3) a ‘new technology’ based
approach to marketing management is central to Tesla's current and future growth.

2. Constant Rise of Tesla Inc.: Strategic Marketing Plan Leading To Company’s Colossal
Growth in 2020 Mr. Bhuvan Handa

Tesla Inc. (initially known as Tesla motors) founded in 2003 by two engineers, Martin Eberhard
and Marc Tarpenning in San Carlos, California. Later, the involvement of Elon Musk in 2004
revolutionized the auto industry with his groundbreaking innovations that mainly focus on
futurism by focusing on building a sustainable Energy Ecosystem. This research report will also
be discussing the evolution of Tesla stock using various sources and data. Tesla has successfully
attracted customers not only with wealth and status but also average earning customers from
different age and gender groups.

3. Financial Statements Analysis on Tesla, Anupam Mehta, Institute of Management

Technology, Dubai International Academic City

The current research has adopted descriptive method of research through secondary data.
Financial Statements has been downloaded from the official website of Tesla Inc. and prepared

12
 In-Industry Report at Vibro Tech

Comparative and Common-size statements along with 17 financial ratios. This study observed
that Gross Profit for the Company was in increasing trend in absolute figures but when compared
as a percentage of sales it reveals that Gross Profit has been decreased from 23% in 2015 & 2016
to 19% in 2017. Coupled with this higher costs of Maintenance, Research and Development,
Selling, General and Administrative expenses have triggered the company towards Net Loss.

4. Competitive Strategy How Tesla Sets Itself Apart by Lou Shipley

Tesla and its flamboyant, and sometimes erratic, innovator Elon Musk have turned the more than
a century old industry upside down in a mere 16 years. Traditional automakers are ill prepared to
compete in today’s software-centered world. Unlike nimble Tesla, they are big, bureaucratic,
slow to respond to customers, dependent on providing customer financing for unit sales growth,
and culturally different from a software company. Tesla’s speed in innovation in the market for
high-end vehicles is more like a Google or an Amazon than an automaker. And its soaring
market valuation is a clear sign to all automakers that they’ll need to develop more innovative,
Tesla-like business models in order to survive.

13
 In-Industry Report at Vibro Tech

14
 In-Industry Report at Vibro Tech

CHAPTER-3

IMPORTANCE OF THE PROPOSED RESEARCH

15
 In-Industry Report at Vibro Tech

CHAPTER-4

RESEARCH METHODOLOGY

16
 In-Industry Report at Vibro Tech

CHAPTER-5

ANALYSIS & INTERPRETATION OF THE STUDY

17
 In-Industry Report at Vibro Tech

CHAPTER-6

RESULTS AND DISCUSSIONS

18
 In-Industry Report at Vibro Tech

CHAPTER-7

CONCLUSION

19
 In-Industry Report at Vibro Tech

BIBLIOGRAPHY

20