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GROUP 5 (Vandara Kam, Trenton Harris, Elias Osio, Yvonne Ongera, Sagar Patel, Delanie Joseph) - PowerPoint PPT Presentation

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GROUP 5 (Vandara Kam, Trenton Harris, Elias Osio, Yvonne Ongera, Sagar Patel, Delanie Joseph). Brief History & Overview. July 2003 — Tesla Motors is founded in California by Martin Eberhard and Marc Tarpenning.

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(Vandara Kam, Trenton Harris, Elias Osio, Yvonne Ongera, Sagar Patel, Delanie Joseph)

Brief history overview
Brief History & Overview

  • July 2003 — Tesla Motors is founded in California by Martin Eberhard and Marc Tarpenning.

  • April 2004 — Billionaire PayPal founder Elon Musk invests in Tesla and joins the board.

  • August 2006 — Actor George Clooney is among those who put down $100,000 deposits for the first 100 Tesla Roadster electric sports cars.

  • March 2009 — Tesla starts taking reservations for the Model S and says production will begin in late 2011. More than 500 people reserve the sedans in the first week.

  • June 2009 — Tesla gets approval for $465 million in low-interest loans from the U.S. Department of Energy to produce the Model S.

  • January 2010 — Tesla registers for an initial public offering of stock.

  • June 2010 — Tesla shares begin trading on the Nasdaq Stock Exchange. The IPO raises $226.1 million.

  • January 2011 — Tesla, reporting full-year financial results for the first time, says it lost $154.3 million in 2010.

History cont d

  • Tesla Motors is the second oldest publicly listed American Automaker (behind Ford).

  • Tesla Motors’ stock is the third most shorted on American stock exchanges: 52.9% shares of float.

  • Tesla Motors is an automaker based in Silicon Valley, California.

  • Motor trend magazine named Model S 2013 car of the year

Tesla roadster

  • First highway-capable all-electric vehicle

  • The motor is air-cooled and does not need a liquid cooling system

  • 0 to 60 mph in 3.9 sec.

  • Base price of $109,000

    in the United States

Tesla model s

  • 0 to 60 miles in 4.4 seconds

  • All Glass Panoramic Roof

  • Designed as an alternative to BMW 5 Series, the Audi A6, the Mercedes-Benz E-Class

Tesla model x

  • Delivery begins in 2014

  • 0 to 60 mph in 5 seconds

  • Doesn’t use a drop of gasoline

  • Falcon Wings open up and out of the way

Tesla s service includes

  • Annual inspection (or every 12,500 miles)

  • Replacement parts like brake pads and windshield wipers (excluding tires)

  • 24 hour roadside assistance

  • System monitoring

  • Remote diagnostics

  • Software updates

  • New features

Tesla s service plan

  • Tesla Rangers can come to your home or office to perform most maintenance and warranty repairs

Supercharger network

  • A network of 480-volt fast charging stations to aid the Model S in making long trip

Work culture

  • Pace is fast, the work is stimulating, structure is limited, & innovation is expected

  • Work in small, focused teams

  • Driven by work that contributes to a global impact

  • They are very passionate about their future in the industry


  • Zero emissions are released into the atmosphere.

  • Electric cars does burn gasoline

  • Uses electricity however it is produced, can be from coal, solar, hydro, geothermal, or wind power.

Charitable contributions

2009 Renew America Road trip

• Purpose was to raise awareness about green technology and promote electric vehicles.

• An electric car made by Tesla Motors was driven from New York to San Francisco.

• The proceeds went to different charities: the American Lung Assoc., Parkinson’s Assoc., and local homeless shelters.

Charitable contributions1

2011 Tsunami Relief Efforts

• In 2011, Elon Musk, CEO of Tesla Motors, donated $250,000 to the Musk Foundation.

• The donation funded a solar power project to bring low-cost, clean energy to Soma, Japan.

• The location in Japan was severely destroyed by an earthquake and a tsunami just months earlier.

Business processes

  • On June 29, 2010, Tesla Motors launched its IPO, raising $226M

  • First American car company to go public since Ford in 1956

Management Processes

  • Sell their own vehicles in company-owned showrooms and online

  • Sell their patented electric powertrain to other car manufacturers

Operational processes
Operational PROCESSES

  • No Tesla dealers

  • No commissioned sales people

  • No negotiation

  • Transactions conducted online

  • No inventory, built-to-order

  • $5,000 deposit for test drive

  • Wait list of months or even years to get a car

  • Cars are marketed, not aggressively sold

  • Marketed as a luxury sport car that can compete in the market

  • Partnered with Daimler and Toyota

Supporting processes suppliers
Supporting Processes & Suppliers

  • Service centers

  • Supercharger network

  • Tesla Roadster uses parts from around the world

  • Powertrain is designed and built in California

  • Carbon fiber body panels made by Sotira, in France

  • These panels are sent to England, where Lotus builds the chassis

  • Cars arrive at Menlo Park, CA, where proprietary components are installed

  • Battery cells made in Japan, by Panasonic, assembled in Palo Alto, CA


  • Used $365M in federal low-interest loans to build a Model S assembly plant in Fremont, CA

  • Bought for $42M in May 2010, with an investment of $50M by Toyota

  • First two retail stores in West Los Angeles, CA (April 2008) and Menlo Park, CA (July 2008)

Why buy a tesla

  • They do not require routine

    Oil changes.

  • They do not have any tailpipe emissions and therefore do not require any muffler or exhaust system work.

  • They do not require replacement spark plugs, pistons, hoses or belts.

Competetive edge

  • Dedicated employees- 6 day work week 10-12 hours a day

  • Advertising- Primarily word of mouth

  • Customer feedback- Reviews promote the brand as a quality company with happy customers

  • Rising gas prices

Information systems

Source: “Tesla Systems Integration Diagram”


  • Send out Requests for Quotation to multiple suppliers

  • Identify and maintain lists of suppliers

  • Strategic sourcing approval process

  • Issue Customer Purchase Orders for parts and tools

  • Maintain day to day supplier relationships through a Supplier Relationship Management System

  • Asset Management System handles purchasing of equipment and technical infrastructure

Information systems1


  • Build custom ERP solution systems

  • Requirements Management System (RMS) for Tesla planning

  • Product Data Management System (PDMS) to support the engineering and preparation

  • Asset Management (AMS) handles commissioning, operating, and maintaining equipment

  • Facility Management System (FMS) and Geographic Information System for Tesla planning and building new structure

Source: “Integrated Information Management for TESLA”

Information systems2

Project Management

  • Product Data Management System allows for coordination of work packages by a workflow engine which optimizes the exchange of information

  • Process Manager creates a Work Package and sends it to Project Team

  • Project Team executes and document tasks on the information system which automatically sends the data to a Process Manager and Database Manager

  • Requirements Management System allows physicists, engineers, safety regulators, and infrastructure managers to communicate and exchange information freely

  • RMS also allows engineers and technicians to plan, design, and construct new infrastructure and buildings

Information systems3

Accounting and Finance

  • Book payroll and benefits in accounting system

  • Organize payroll system and accounts payable

  • Accurate expense reporting

  • Improve Procure-to-Pay process

  • Create and maintain proper documentation for all business transactions

Source: “Tesla Systems Integration Diagram”