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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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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. • 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
ENVIRONMENT • 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 CONTRIBUTIONS 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 • 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 • 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
Facilities • 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” Procurement • 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 SYSTEMS Production • 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 SYSTEMS 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 SYSTEMS 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”
Sources • http://www.teslamotors.com/media/press_room.php?id=53&js_enabled=0 • http://www.teslamotors.com/about • http://www.plug-in.com/tesla-motors-roadster-for-charity/ • http://www.teslamotors.com/about/executives/elonmusk • http://www.marketwatch.com/story/tesla-motors-revs-up-244-million-ipo-2010-06-28 • http://scienceofrevenue.com/2013/01/20/tesla-model-s-the-disruptive-marketing-of-an-electric-car/ • http://www.mercurynews.com/business/ci_20919722/silicon-valley-milestone-tesla-motors-begins-delivering-model?refresh=no • http://arxiv.org/ftp/cs/papers/0306/0306079.pdf • http://www.slac.stanford.edu/econf/C0303241/proc/pres/386.PDF • http://www.localhelpwanted.net/bayarea/job/Purchasing-Specialist--Fremont-CA-94536-USA/lhw-e0-20072183 • http://www.localhelpwanted.net/southbay/job/Applications-Developer--Palo-Alto-CA-94309-USA/lhw-e0-20174591 • http://www.localhelpwanted.net/southbay/job/Director-Accounting-Operations--Palo-Alto-CA-94309-USA/lhw-e0-19466945 • http://www.indeed.com/viewjob?jk=17a94436e720c4ba