GROUP 11

2 0 1 2 0 2 0 0 9 – G S H AI L A P RA BH U

2 0 1 2 0 2 0 2 6 – AS H I T H A RA I

2 0 1 2 0 2 0 3 0 – K R I TAN S H M I S H RA

2 0 1 2 0 2 0 4 6 – C L A RE N C E I N AC I N H O MA Z AR E L LO

2 0 1 2 0 2 0 5 2 – K A RTI K GUR U N G
INTRODUCTION

• Founded in 2003

• The company designs, develops, manufactures, and markets high-performance

• Tesla sells more than five fully electric cars-

 The Model S sedan and

 The Model X SUV, and

 The Model 3 sedan (the world's top-selling electric cars).

• The fuel-efficient, fully electric vehicles recharge their lithium-ion batteries from
an outlet.

• Tesla's Autopilot self-driving technology

HISTORY & OVERVIEW

• Named after electrical engineer and physicist Nikola Tesla

• An American company that designs, manufactures, and sells electric cars and
electric vehicle powertrain components

 Tesla Motors was incorporated in July 2003 by Martin Eberhard and Marc

 Musk led the Series A round of investment in February 2004, joining Tesla's
Board of Directors as its Chairman
 Musk led the Series A round of investment in February 2004, joining Tesla's
Board of Directors as its Chairman

 Tesla's primary goal was to commercialize electric vehicles

 Musk was the controlling investor in Tesla from the first financing round
WHO IS ELON MUSK?
• Visionary genius who changed multiple
industries.

• Co-founder of Zip2

• Founder of X.com (now PayPal)

• Founder, CEO, Lead Designer of SpaceX

• CEO, Product Architect of Tesla, Inc.

• Co-founder of OpenAI

• Future of Life Institute

• Founder of The Boring Company

• SolarCity
JOURNEY OF ELON MUSK

• Born in South Africa on June 28,1971

• Self taught computer programmer

• Sold video game made by him for $500 at age of 12

• Bachelor in Physics

• Dropped out of the Applied Physics and material science program at Stanford
University

• His next company was (X.com) PayPal

• The first company he started was Zip2 with his cousin Kimbal Musk
INNOVATION AT TESLA

T he deep -roo ted Tesla innovation culture sets th e business ap art – ev en amon g top-
tier competitors
Here are the k ey factors that contribute to Tesla’s po sitio n am ong the elite.
1.Innov ative Ind ivid uals
2.The Produ cts
•innov ation related to the v ehicle
•innov ation related to the Batter y Techno logy
•innov ation co ncernin g the recharging system
•innov ation toward the EV ecosystem
3.Tesla supercharg er network
4.Software
5.Auto -Pilo t
Tesla’s
Supercharger
Network
Tesla has
launched
faster third
generation
Supercharger
The Tesla powertrain is marketed as simple, reliable, and
effective
Tesla put up a
time-lapse
showing its Fully
functioning
Autopilot feature
used to travel
from one city to
another

https://www.youtube.co
m /watch?v=tlThdr3O5Qo
DISRUPTIVE INNOVATION AT TESLA

A disruptive innovation is defined as “a product or service that displaces an

incumbent product or service”

Tesla’s Disruptive marketing techniques were -

• Start with a great product

• Start high and work your way down

• Create a new multi-channel model

• Build the community & focus on the experience

• Leverage the media and traditional press

DIFFUSION OF INNOVATION MODEL
DIFFUSION OF INNOVATION MODEL

• Innovators have embraced the concept of green cars within USA

• Tesla Model 3 – Low priced automobile

- Helping to develop Future technology

• Development of Model X and Cyber truck to meet new trends

• Differentiating itself from standard dealership model

DIRECT SALES vs FRANCHISING

• Direct Relationship with • Dealers are invested in their

Customers communities

• All customer data is collected • Additional Security for buyers

directly • Physical verification of cars
• No conflicts with distributors
• One stop destination for buyers
• Controlled Pricing to avoid
dealer margins
BEFORE OPEN SOURCE MOVEMENT

• Industry Situation

- Building up new basic knowledge and competences

- Developing Strategic partnerships to introduce new technologies

• Electric Vehicles Market

- Technological Uncertainty

- Constraints

- Need to convince customers

BEFORE OPEN SOURCE MOVEMENT

• Strategic Partnerships

- Panasonic

- Dailmer

- Toyota

• Technology

- Leading EV car concerning performance and efficiency

- Development of fastest DC rapid charging station

- Have 250 patents on battery and charging technologies

OPEN-SOURCE MOVEMENT

• Open-source movement: Wherein secrecy and centralized control of creative work

is rejected in favour of decentralization, transparency, and unrestricted sharing of
information

• Gained momentum in 1960s

• 1987 – Commercialization of UNIX – Open software foundation - “UNIX wars”

• Richard M Stallman a programmer from MIT – 1985 – Introduced Free software

foundation(FSF) and General Public License

• Eric S Raymond published a book called The Cathedral & Bazaar mentioned the
“Many eyeball effect”

• Risks involved: Infringement and License restrictions

OPEN-SOURCE MOVEMENT - TESLA

• 2014 – Announcement of open-sourcing Tesla’s patents

Reason: Removal of legal barriers for acceleration of innovation in

transport sector; building a bigger market

• As of 2013 Tesla had over 350 patents registered.

Impact: Toyota – 5600 patents, Ford: Electric-vehicle related patents

• Patent Pledge – Gives tremendous opportunity but at substantial risk. If

Patent pledge is violated it loses the protection it provides.
FINANCIAL GROWTH OF TESLA
MASS MARKET ENTRY

• Tesla started small - Roadster

• Partnership with lotus motors

• First high-performance electric luxury sport car

• Sold 2500 units

• Ended production in 2012

• Established company and brand is automobile market

PROBLEMS WITH MASS MARKET ENTRY

Customer identification

Price and payback times

Range

Core & ancillary attributes

Consumer perceptions
DEFYING SHORTCOMINGS OF MASS
MARKET ENTRY

• Supercharger network

• Sales model

• Threats
FUTURE OF AUTOMOBILE INDUSTRY -
TECHNOLOGICAL CHANGES THAT MAY IMPACT
TESLA

• Barriers entries in automobile industry are coming down

• Setting up of standards for vehicle-to-vehicle and vehicle-to-infrastructure

communications

• Increase in competition in technology – Google, Apple, Microsoft

• Increase of competitors in international market – Qiantu

• Entry of IT companies in automobile ecosystem