TESLA MOTORS INC.TSLA(NASDAQ)CLOSING PRICE:$188.34BETA: 0.9547

BUSINESS MODEL ANALYSIS

COMPANY OUTLOOK

• Tesla has ramped up the production of MODEL X and MODEL 3.

• MODEL X is aimed mid-tier income range consumers in order to expnd the customer base with base price $35,000.• MODEL 3 is slotted to ship in late 2017.• Launched Autopilot during 4th Quarter of 2015 and Powerwall will

be introduced • The stock faces pressure because of decline in fuel prices

BACKGROUND

• Tesla Motors was founded in 2003 by Elon Musk in San Carlos, CA.• Market Capital: $24.66 billion• Common Stock: 127,225,000 shares• Leading developer of electric-vehicle technology• IPO was held on June 29, 2010. 13.30 million shares were offered

for $17.00 each.• Lead managers at IPO : Deutsche Bank, Goldman Sachs, Morgan

Stanley, J.P. Morgan

CAPITAL STRUCTURE AS OF 9/30/15

• Total Debt: $2633.2 million• Due 5 years: $1589.3 million• Long Term Debt: $2605.2 million• Long Term Interest: $27 million

EXPANSION

• Gigafactory 1 in Nevada operates at 14% capacity and the company has set sights on deploying full capacity.• Gigafactory 2 is likely to be developed in Europe and Asia as

company aims to expand the manufacturing capability regionally.• Japan and Germany are the foremost runner for construction

prospects.

TESLA VS COMPETITORS

GAS PRICES EFFECT

KEY FINANCIALS

OVER ALL COMPANY OUTLOOK

SALES

EARNINGS PER SHARE

FAMA-FRENCH ANALYSIS

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1Fama French Analysis

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SWOT ANALYSIS

SUMMARY

• Company’s Financial Strength B+.• Stock Price Stability: 10• Price Growth Persistence: 100• Earnings Predictability: Volatile but share price is expected to

grow. • US Institutional Decisions based on 2015.• Buy : 277 , Sell: 187

PROPOSITION

• 20-25 shares at current price