Responsibility Matrix R = Responsible S = Support
Project Background • Tesla Motors is an electric car company that was founded in 2003 by engineers working in Silicon Valley who were determined to make an electric car that would be reliable, durable and able to sustain long distances. • The focus of this project will be on Tesla Motors latest addition the Model S
Model S • Model S is a high-performance, premium electric sedan that intends to compete with cars such as the Mercedes and BMW 5-series. • This model follows Tesla Motors' business plan to expand down-market from the high performance Tesla Roadster sports car. • Model S was announced in a press release on June 30, 2008. • The goal that was set was to produce 20,000 Model S cars from the start date in 2012 to the end of 2013 year
Cost • With the going price to build a North American auto plant averaging $1 billion • Tesla may have spent less than a third that much to buy, renovate and equip its factory. • It paid $42 million for the plant in 2010 • $17 million for some of its presses and machinery • Tesla got other used equipment at a “fraction” of the original cost from parts suppliers including Tower Automotive Inc
Time Factory and Location • Construction of an assembly factory in Albuquerque, New Mexico was supposed to begin in April 2007, but was cancelled • A factory to be built in San Jose, California was also announced in 2008, but was also cancelled as well due to prohibitive cost • Finally in May 2010 Tesla Motors announced it would produce the new lower-priced Model S at the former NUMMI assembly plant in Fremont, California, now known as the Tesla Factory.
Time cont. Production • The Model S was officially launched at the factory on June 22, 2012. • After the first four weeks of production, Tesla announced it had manufactured their 100th production Model S, of which 74 were for customers. The other 26 were being used for test drives, displays, testing, and training. • On September 13, 2012 production rate was up to 80 cars per week, • November 5, Tesla announced it had reached a production rate of over 200 cars per week. • December 2012, Tesla reported that production had reached 400 units per week or 20,000 per year. • In March 2013 Tesla reported they produced on average more than 500 model S EVs per week.
Time cont. Deliverables • Tesla Motors reported 520 reservations for the Model S during the first week on March 26, 2009. • By mid December 2010, Tesla announced that the reservation count had passed 3,000, • 6,500 by November 2011 • 13,200 by September 2012. • December 2012, there were over 15,000 net reservations after deliveries and cancellations are accounted for.
Scope Battery • The Model S is offered with two battery packs: a base model with a 60 kW·h battery expected to deliver 230 miles and 85 kW·h battery expected to deliver 300 miles. • Tesla released software that features new energy-saving “sleep" functionality. The software allows Model S owners to choose between keeping the displays and vehicle electronics instantly available each time you turn on the car, or powering off the display and vehicle electronics each time you exit through a "sleep" state. it can increase the Model S range up to 8 mi per day. • The lithium-ion battery consists of more than 7,000 battery cells for the 85 kW·h pack. The battery pack uses Panasonic cells with nickel-cobalt-aluminum cathodes. • The battery pack location underneath the car in the floor provides the Model S with a very low center of gravity. • The Model S battery is guaranteed by Tesla Motors for eight years or 100,000 mi for the base model with the 40 kW·h battery pack, while the base model with the 60 kW·h battery has an eight years or 125,000 mi warranty. All models with the 85 kW·h battery pack are guaranteed for eight years and unlimited miles.
Scope cont. Charging • The charger for the Tesla Model S provides 10 kW 110/240-volt charging standard. An optional US$1,500 upgrade will support 20 kW charging • Instead of a power port that opens like a gasoline cap, like other electric cars in the market, the Model S charge port is hidden behind the left rear taillight. The port is circled in LED lights that indicate how much the battery is charged by how rapidly the lights blink. • Adapters are provided for 110 and 240 volt outlets, and for public charging stations. • Tesla has deployed several 90 kW 250 amp Tesla Supercharger units between key cities to allow fast charging on road trips with plans to build more. • A Supercharger can add 150 miles of range in 30 minutes and a full charge in approximately one hour
Tesla Model S • http://www.bloomberg.com/video/the-tesla-model-s-designing-the-car-of-the-future-zHOTD4KAQvyqHcBV~_esfA.html
Issues • Despite the Virginia DMV Hearing Office making a recommendation that Tesla be granted a license • Complaints by dealership groups in Texas and Virginia that Tesla should not be allowed to sell its cars directly to the public. • Want the same independent dealership network as is the status-quo for cars currently to be kept.
Take Away Points • Tesla Motors has risked its future growth to the Model S success • Tesla has also made wise decisions in keeping cost low but it has struggled as far as time in the beginning • As of March 2013 Tesla is on target to complete its desired production of 20,000 car by end of 2013