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    Submitted by GROUP 2:

    Aditya Srinivasan 

    Ayushi Thakur 

      Karan Lalchandani

      Kaushal Sood

      Radhika Damani

     

    PROJECT REPORT ON TESLA

    MOTORS

     

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    EXECUTIVE SUMMARY

    We have taken “Tesla motors” for this assignment to see its otential in !ndia when the entire

    country is riding high on the “Swach "harath” mission with motos like clean !ndia# We as a

    grou think it$s the ideal time for Tesla motors to set sho in !ndia#

    Tesla is a ath %reaking electric vehicle manufacturer which has taken the automo%ile world %y a

    storm# "reaking away from the century old gasoline owered cars it roduced an electric car 

    which outaced the traditional car in every asect ossi%le#

    Tesla roduces remium electric cars for the affluent& with !ndia having the third largest num%er 

    of multi'millionaires in the world& Tesla cars have a romising market in !ndia and hence we are

    analy(ing the true otential of the roduct and how Tesla as a %rand has to romote itself in

    !ndia#

    Tesla is not the resent %ut it$s the future& we are looking at a %rand which is going to %e art of 

    our future and lay a vital role in it#

    !t like our )etsons *A famous +artoon network show on the future, dream has finally come true#

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    ABOUT TESLA MOTORS:

    Tesla -otors was founded in .//0 %y a grou of engineers in Silicon 1alley who wanted to

     rove that electric cars could %e %etter than gasoline'owered cars# With instant tor2ue&

    incredi%le ower& and (ero emissions& Tesla$s roducts would %e cars without comromise# 3ach

    new generation would %e increasingly afforda%le& heling the comany work towards its

    Mission: to accelerate the orl!"s transition to s#staina$le trans%ort.

    Tesla"s en&ineers 'irst !esi&ne! a %oertrain for a sorts car %uilt around an A+ induction

    motor& atented in 4555 %y 6ikola Tesla& the inventor who insired the comany$s name#

    The res#ltin& Tesla Roa!ster as la#nche!  in .//5# Accelerating from / to 7/ mh in 0#8

    seconds and achieving a range of .9: miles er charge of its lithium ion %attery& the Roadster set

    a new standard for electric mo%ility# Tesla would sell more than .&9// Roadsters& now on theroad in more than 0/ countries#

    In ()*(+ Tesla la#nche! Mo!el S& the world$s first remium electric sedan#

    "uilt from the ground u to %e 4// ercent electric&

    -odel S has redefined the very concet of a four'door car#

    With room for seven assengers and more than 79 cu%ic feet of storage&

    -odel S rovides the comfort and utility of a family sedan

    while achieving the acceleration of a sorts car; / to 7/ mh in a%out five seconds#

    !ts flat %attery ack is integrated into the chassis and sits %elow the occuant ca%in&

    lending the car a low center of gravity that ena%les outstanding road holding and handling

    while driving .7: miles er charge#

    Mo!el S as na,e! Motor Tren!"s ./40 +ar of the

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    The P./0 %airs a high efficiency front motor with a erformance rear motor for suercar 

    acceleration& achieving a / to 7/ mh time of 0#. seconds @ the fastest four'door roduction car 

    ever made#

    No ith ,ore  than :/&/// vehicles on the road worldwide& Tesla is %re%arin& to la#nch

    Mo!el X+ a crossover vehicle that enters volume roduction in ./4:#

     eaturing eBhilarating acceleration& falcon wing doors& and room for three rows of seating&

    -odel C defies categori(ation#

    Tesla owners enoy the %enefit of charging at home so they never have to visit a gas

    station or send a cent on gasoline#

    or long distance ourneys& Tesla$s Suercharger network rovides convenient and free

    access to high seed charging& relenishing half a charge in as little as ./ minutes#

    Suerchargers now connect oular routes in 6orth America& 3uroe& and Asia Eacific#

    Tesla"s 1ehicles are %ro!#ce! at its factory in remont& +alifornia& reviously home to 6ew

    =nited -otor -anufacturing !nc#& a oint venture %etween Toyota and Feneral -otors# The Tesla

    actory has returned thousands of o%s to the area and is caa%le of roducing 4&/// cars a week#

    The co,%an2 is e3%an!in&  its manufacturing footrint into other areas& including in Til%urg&

    the 6etherlands& where it has an assem%ly facility& and Lathro& +alifornia& where it has a

    seciali(ed roduction lant#

    To re!#ce the costs of lithium ion %attery acks& Tesla and key strategic artners including

    Eanasonic have %egun construction of a gigafactory in 6evada that will facilitate the roduction

    of a mass'market afforda%le vehicle& -odel 0#

    B2 ()()& the gigafactory will roduce more lithium ion cells than all of the world$s com%ined

    outut in ./40# The gigafactory will also roduce %attery acks intended for use in stationary

    storage& heling to imrove ro%ustness of the electrical grid& reduce energy costs for %usinesses

    and residences& and rovide a %acku suly of ower#

    Tesla is not just an automaker, but also a technology and design company with a focus on energy

    innovation#

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    4ISTORY:

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    Tesla -otorswas

    incororated in

    )uly .//0

     %y -artin

    3%erhard and

    -arc

    Tarenning&who financed

    the comany

    until the Series

    A round of 

    funding#

    Both ,en

    %la2e! acti1e

    roles  in the comanyGs early develoment

     rior to 3lon -uskGsinvolvement# -usk led the Series A round

    of investment in e%ruary .//9& oining

    TeslaGs "oard of Directors as its +hairman#

    Tesla5s %ri,ar2 &oal was to commerciali(e

    electric vehicles& starting with a

     remium sorts car aimed at early adoters

    and then moving as raidly as ossi%le into

    more mainstream vehicles& including

    sedans and afforda%le comacts

    -usk took an active role within the

    comany and oversaw Roa!ster

    %ro!#ct !esi&n at a detailed level& %ut was

    not deely involved in day' to'day %usiness

    oerationsH 3%erhard acknowledged

    that -usk was the erson who insisted

    5

    The insignia of Tesla -otors asseen on a Tesla Roadster S ort

    http://en.wikipedia.org/wiki/Martin_Eberhardhttp://en.wikipedia.org/wiki/Martin_Eberhardhttp://en.wikipedia.org/wiki/Series_A_roundhttp://en.wikipedia.org/wiki/Series_A_roundhttp://en.wikipedia.org/wiki/Series_A_roundhttp://en.wikipedia.org/wiki/Series_A_roundhttp://en.wikipedia.org/wiki/Martin_Eberhardhttp://en.wikipedia.org/wiki/Martin_Eberhard

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    from the %eginning on a car%on fi%er %ody and he led design of comonents ranging from the

     ower electronics module to the headlams and other styling#

     In a!!ition to his daily oerational roles& -usk was the controlling investor in Tesla from the

    first financing round& funding the large maority of the Series A caital investment round

    of =SI8#: million with ersonal funds#6ro, the $e&innin&& -usk consistently maintained that TeslaGs long'term strategic goal was to

    create afforda%le mass market electric vehicles# -usk received the Flo%al Freen .//7 roduct

    design award for his design of the Tesla Roadster& resented %y -ikhail For%achev&  and he

    received the .//8 !ndeB Design award for his design of the Tesla Roadster#

    M#s75s Series A ro#n! included +omass Technology Eartners and SDL 1entures& as well as

    many rivate investors# -usk later led Tesla -otorsG Series "& =SI40 million& investment round

    that added 1alor 32uity Eartners to the funding team#

    M#s7 co8le! the thir!& =SI9/ million round in -ay .//7 along with Technology Eartners#

    TeslaGs third round included investment from rominent entrereneurs including Foogle co'

    founders Sergey "rin JLarry Eage& former  e"ay Eresident )eff Skoll& >yatt heir 6ick 

    Erit(ker  and added the 1+ firms Draer isher )urvetson +aricorn -anagement and The "ay

    Area 32uity und managed %y )E-organ +hase#

    The 'o#rth ro#n! in Ma2 .//8 added another =SI9: million and %rought the total investments

    to over =SI4/: million through rivate financing#

    In 0ece,$er ())9& eGev Drori %ecame +3? and Eresident# !n )anuary .//5& Tesla fired several

    key ersonnel who had %een involved from the incetion after a erformance review %y the new

    +3?# According to -usk& Tesla was forced to reduce the comany workforce %y a%out 4/ tolower its %urn rate& which was out of control in .//8#

     The 'i'th ro#n! in 6e$r#ar2 ()). added another =SI9/ million# -usk had contri%uted =SI8/

    million of his own money to the comany %y this time# !n ?cto%er .//5& -usk succeeded Drori

    as +3?# Drori %ecame 1ice +hairman& %ut then left the comany in Decem%er#

    B2 Jan#ar2 ())& Tesla had raised =SI458 million and delivered 498 cars# ?n -ay 4M& .//M&

    FermanyGs Daimler AF& maker of -ercedes'"en(& ac2uired an e2uity stake of less than 4/ of 

    Tesla for a reorted =SI:/ million# !n )uly .//M& Daimler announced that A%u Dha%iGs Aa%ar 

    !nvestments %ought 9/ of DaimlerGs interest in Tesla#

    In J#ne ()) Tesla as a%%ro1e! to receive =SI97: million in interest'%earing loans fromthe =nited States Deartment of 3nergy# The funding& art of the =SI5 %illion Advanced

    Technology 1ehicles -anufacturing Loan Erogram& suorts engineering and roduction of the

    -odel S sedan& as well as the develoment of commercial owertrain technology#

    6

    http://en.wikipedia.org/wiki/Global_Greenhttp://en.wikipedia.org/wiki/Mikhail_Gorbachevhttp://en.wikipedia.org/wiki/Mikhail_Gorbachevhttp://en.wikipedia.org/wiki/Venture_roundhttp://en.wikipedia.org/wiki/Googlehttp://en.wikipedia.org/wiki/Sergey_Brinhttp://en.wikipedia.org/wiki/Larry_Pagehttp://en.wikipedia.org/wiki/EBayhttp://en.wikipedia.org/wiki/EBayhttp://en.wikipedia.org/wiki/Jeff_Skollhttp://en.wikipedia.org/wiki/Hyatthttp://en.wikipedia.org/wiki/Nicholas_J._Pritzkerhttp://en.wikipedia.org/wiki/Nicholas_J._Pritzkerhttp://en.wikipedia.org/wiki/Draper_Fisher_Jurvetsonhttp://en.wikipedia.org/wiki/JPMorgan_Chasehttp://en.wikipedia.org/wiki/Ze'ev_Drorihttp://en.wikipedia.org/wiki/Ze'ev_Drorihttp://en.wikipedia.org/wiki/Burn_ratehttp://en.wikipedia.org/wiki/Abu_Dhabihttp://en.wikipedia.org/wiki/Abu_Dhabihttp://en.wikipedia.org/wiki/Abu_Dhabihttp://en.wikipedia.org/wiki/Aabar_Investmentshttp://en.wikipedia.org/wiki/Aabar_Investmentshttp://en.wikipedia.org/wiki/United_States_Department_of_Energyhttp://en.wikipedia.org/wiki/Advanced_Technology_Vehicles_Manufacturing_Loan_Programhttp://en.wikipedia.org/wiki/Advanced_Technology_Vehicles_Manufacturing_Loan_Programhttp://en.wikipedia.org/wiki/Global_Greenhttp://en.wikipedia.org/wiki/Mikhail_Gorbachevhttp://en.wikipedia.org/wiki/Venture_roundhttp://en.wikipedia.org/wiki/Googlehttp://en.wikipedia.org/wiki/Sergey_Brinhttp://en.wikipedia.org/wiki/Larry_Pagehttp://en.wikipedia.org/wiki/EBayhttp://en.wikipedia.org/wiki/Jeff_Skollhttp://en.wikipedia.org/wiki/Hyatthttp://en.wikipedia.org/wiki/Nicholas_J._Pritzkerhttp://en.wikipedia.org/wiki/Nicholas_J._Pritzkerhttp://en.wikipedia.org/wiki/Draper_Fisher_Jurvetsonhttp://en.wikipedia.org/wiki/JPMorgan_Chasehttp://en.wikipedia.org/wiki/Ze'ev_Drorihttp://en.wikipedia.org/wiki/Burn_ratehttp://en.wikipedia.org/wiki/Abu_Dhabihttp://en.wikipedia.org/wiki/Aabar_Investmentshttp://en.wikipedia.org/wiki/Aabar_Investmentshttp://en.wikipedia.org/wiki/United_States_Department_of_Energyhttp://en.wikipedia.org/wiki/Advanced_Technology_Vehicles_Manufacturing_Loan_Programhttp://en.wikipedia.org/wiki/Advanced_Technology_Vehicles_Manufacturing_Loan_Program

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    The lo8interest loans are not related to the N%ailoutN funds that F- and +hrysler received& nor 

    are they related to the .//M economic stimulus ackage# The loan rogram was created in .//8

    during the Feorge W# "ush administration# Tesla reaid the loan in -ay ./40#

    Tesla as the 'irst  car comany to have fully reaid the government&

    while ord&  6issan and isker  had not#The co,%an2 anno#nce!  in early August .//M that it had achieved overall cororate

     rofita%ility for the month of )uly .//M# The comany said it earned aroBimately =SI4

    million on revenue of =SI./ million# Erofita%ility arose rimarily from imroved gross margin

    on the ./4/ Roadster& the second iteration of Tesla$s award'winning sorts car# Tesla& which like

    all automakers records revenue when roducts are delivered& shied a record 4/M vehicles in

    )uly and reorted a surge in new Roadster urchases#

    In Se%te,$er ())+  Tesla announced an =SI5.#: million round to accelerate TeslaGs retail

    eBansion# Daimler articiated in the round to maintain e2uity ownershi from its initial

    investment#

    Tesla Motors si&ne! a %ro!#ction contract on )uly 44& .//:& with Frou Lotus to roduce

    NglidersN *comlete cars minus owertrain,# The contract ran through -arch ./44& %ut the two

    automakers eBtended the deal to kee the electric Roadster in roduction through Decem%er 

    ./44 with a minimum num%er of .&9// units& when roduction ended& mostly %ecause of tooling

    changes orchestrated %y one of its suliers# !n )une ./4/& it was reorted that Tesla sold a total

    of =SI4.#. million (ero emission vehicle credits to other automakers& including >onda& u to

    -arch 04& ./4/#

    In Octo$er ()*-& %oth Daimler and Toyota sold their holdings of Tesla shares#

    7

    http://en.wikipedia.org/wiki/Ford_Motor_Companyhttp://en.wikipedia.org/wiki/Nissanhttp://en.wikipedia.org/wiki/Nissanhttp://en.wikipedia.org/wiki/Fisker_Automotivehttp://en.wikipedia.org/wiki/Fisker_Automotivehttp://en.wikipedia.org/wiki/Ford_Motor_Companyhttp://en.wikipedia.org/wiki/Nissanhttp://en.wikipedia.org/wiki/Fisker_Automotive

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    PENETRATION STRATE;Y:Aiming remium roducts at affluent Nthought leadersN is a very well'known %usiness strategy in

    Silicon 1alley and the glo%al technology industry& where rices for the first versions of& for 

    8

    TESLA MOTORS

    Parent Co,%an2 Tesla Motors

    Cate&or23lectric 1ehicles

    Sector Automo%ile

    Ta&line< Slo&an "urn ru%%er not gasoline

    USP A%ility to %uild fully electrically oweredvehicles in house

    STP

    Se&,ent Eeole looking for electric remiumsortsOluBury cars

    Tar&et ;ro#% Rich and Affluent who are willing to send

    more comared to other vehicles

    Positionin& Eure electric drive %ut still sorty J luBurious

    COMPETITION

     

    Che1rolet Volt To2ota Pri#s S,art Car To2ota Ra1- 42$ri!

    4on!a Ci1ic 42$ri!

     

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    eBamle& cellular hones& lato comuters& and flat'screen televisions start high %ut dro with

    su%se2uent roducts as the technology matures and roduction volumes increase#

    PAccording to a %log ost %y -usk& N6ew technology in any field takes a few versions to

    otimi(e %efore reaching the mass market and in this case it is cometing with 4:/ years and

    trillions of dollars sent on gasoline cars#N

    4O= TESLA =ILL MA>E AN IMPACT ON ITS TAR;ET AU0IENCE

    AU0IENCES   >EY MESSA;ES

    CORPORATE EXECUTIVES !t will Show them %eing ahead of the curveH go

    green %y driving a Tesla#

    CAR BU66S The Tesla will meet the erformance needs and

    without worrying a%out the environmental imact#

    CELEBRITIES Showing their fans they care a%out the

    environment %y driving a Tesla#

    ENVIRONMENTALLY SUSTAINABLE

    OR;ANI?ATIONS

    Showing the commitment to environmental

    sustaina%ility eBtends %eyond %usiness %y driving a

    Tesla#

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    10

    S=OT

    STREN;T4

    *@They develoed 4st fully electric sorts car “TheRoadster”

    (@Also a strong sulier to other manufacturers likeToyota

    #Strong technological eBertise in the area of electric transmissions J drive train

    -@A%ility to develo vehicles comletely in houseincluding the su%'assem%lies re2uired

    /#Their current latform develoed for -odel S hasthe a%ility to %e used for their future crossover 

    model or any other model they envision

    =EA>NESS

    *#Since they fully develo the vehicles includingtheir su%'assem%lies this leads to higher costs of 

     roduction as economies of scale are not achieved

    (@The rices of their roducts are higher than their cometitors who sell com%ustion engine owered

    vehicles

    OPPORTUNITY

    *@The growing suort %y governments across theglo%e for environmentally friendly vehicles in form

    of eBemtions from duties J other suort

    (@Suorts the -ercedes$ Smart car& which can leadto learning which will hel them with their 

     assenger cars which they lan to launch in near 

    future

    @!mrovements in the 2uality control rocesses canreduce these costs drastically

    T4REATS

    *@ Tesla wants to %e a%le to roduce& distri%ute Jsell its cars to average which seems difficult to

    achieve due to their current %usiness model

    (# Their strategy for ricing *skimming, has not %een used so far in the auto industry

    @  They are currently cometing against a

    technology which has %een in use for over hundredyears i#e# the com%ustion enginesJ also their 

    technology may take time for %eing otimal for use

    of masses

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    “We have identified India is one of the potential markets in Asia to have a local assembly

     plant, but we need a definite policy from the government to support electric vehicles in the

     future,"- Viayan, !I at #esla $otors%

    The most interesting thing a%out Tesla Q the niche luBury electric car maker Q is the role of 

    marketing in selling electric cars that cost I4//&/// or more# -any eole have tried to change

    the auto industry over the last 9/ years and none have succeeded# The rocess of %uying a car is

    essentially the same as it was a generation ago# And the rocess has remained unoular for 

    decades; the tyical car dealer receives ust . or 0 stars on

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      !n many arts of the country& you can$t see or drive the car %efore you %uy even if you

     lace a deosit

      ow hard is it to %uild and sell cars in the =SA Look at it this way; Tesla is the second oldest u%licly traded auto comany in the =nited States

     %ehind ord# F- went %ankrut and went u%lic four months after Tesla# +hrysler remains

     rivate following its own reorgani(ation#

    While Tesla has a long way to go to %e rofita%le& roducing cars in volume& and moving

    towards the mainstream& their first home'%uilt roduct Q the -odel S Q is a success# They have

    12

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    4/&/// @ ./&/// orders and have swet the auto industry awards& winning the most recent round

    of -otor Trend& Automo%ile& and

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     Traditional luBury auto makers focus on “engineering” Q Through the Tesla marketing lens&

    educated viewers see comleBity& maintenance& and anti2uated technology

    Tesla Service centers have imractical white floors to highlight that the cars run clean without

    messy oil and fluids

    - Create a ne ,#lti8channel ,o!el: Tesla decided not to %uild a traditional car dealer 

    network# 6o%ody likes car dealers; even %uying and servicing a high'end car like a Eorsche is a

    dreadful eBerience# Tesla looked at the car %uying rocess and otimi(ed its sales model to fit

    the way eole %uy cars today# Since eole start online& Tesla designed their rocess around

    online information& commerce& and community# Their site is unusually clear& clean& and effective#

    or eole who want to see the car& they are %uilding kiosk stores in malls with Tesla eBerts

    who can$t sell cars and who aren$t commissioned# When a %uyer is ready& they lace a refunda%le

    deosit online# !f they want to drive a car& they can arrange a test drive after they$ve laced a

    deosit# 3ssentially& Tesla is selling cars the same way Ale sells the iEhone#

    / B#il! the co,,#nit2 D 'oc#s on the e3%erience:  rom the %eginning& Tesla has made user 

    forums and user community a key art of the online eBerience# Tesla marketing highlights the

    14

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    uni2ue Tesla %uying and ownershi eBerience and encourages owners to interact with the

    comany and each other in full u%lic view on the Tesla site# This rovides a rich %ase of content

     Q and owner assion Q on view for rosective %uyers#

    Le1era&e the ,e!ia an! tra!itional %ress: While much is new a%out the Tesla -odel S and

    the accomanying sales and marketing model& one thing is not; the deendence on traditional

    media# Tesla has %een a master at driving ress coverage& reviews& and awards for its cars# !t$s

    clear that the comany has worked hard to osition the %rand with the media and to make sure

    the right messages come through# The comany$s 4 message is that they are trying to %uild the

     %est car ever made and not ust the %est electric car# This message is fre2uently reeated %y the

     ress#

    TESLA"S 0ISRUPTIVE MAR>ETIN; 6OR ELECTRIC CAR:The most interesting thing a%out Tesla Q the niche luBury electric car maker Q is the role of 

    marketing in selling electric cars that cost I4//&/// or more# -any eole have tried to change

    the auto industry over the last 9/ years and none have succeeded# The rocess of %uying a car is

    essentially the same as it was a generation ago# And the rocess has remained unoular for 

    decades; the tyical car dealer receives ust . or 0 stars on

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    that luBury& yet# Tesla$s caital investment is used to lay down the foundation for tomorrow$s

    success#

    One thin& Tesla !oes ell with a minimum cash flow is to create a %u((# Without sending any

    money on direct advertising camaigns& 3lon -usk and the creative minds %ehind the comany

    know how to generate %u((& and in this modern age& that means using social media#

    The 'irst a! sa2s: Eress to hear the motor start& the other; Lift to feel the weight of the tank& and

    finally& our favorite; Scratch and smell the smell of eBhaust#

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    Tesla -otors has no advertising& no ad agency& no +-?& no dealer network# And thatGs no

     ro%lem#

    The electric'vehicle comany& co'founded %y tech %illionaire 3lon -usk& is the %u(( of the autoindustry and Wall Street& where its stock has triled so far this year#

    The Ealo Alto& +alif#& comany is %reaking all the rules of automotive marketing& eschewing

    dealers in favor of selling through NstoresN in uscale shoing malls and the internet#

    Tesla has / stores across the =#S#& 3uroe and Asia and lans to eBand to :/ over the neBt

    few years& according to an S3+ filing#

    At Tesla5s store  in the swanky -all at Short >ills in 6ew )ersey& -odel S owner +onnie

    +harney says eole lean out their car windows to take ictures with iEhonesQas did two men

    in a "entley converti%le recently#

    FThat5s ho cool this car is+F  said -s# +harney& a greeting'card comany owner from

    -orristown& 6#)# N

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    TESLA: BU?? T4ROU;4 SOCIAL ME0IA

    A%ove all& it has -r# -usk& who insired the Tony Stark character in N!ron -anN and has more

    than ..8&/// Twitter followers#

    The25re sellin& very few cars when you think a%out it '' %ut they are getting an awful lot of 

     %u((# A lot of the attention is not generated through what we consider traditional advertising# !tGs

    really through social media#

    =hile tra!itional  automakers send heavily on rint and television advertising& Tesla is

     %uilding its %rand in a way that doesnGt cost anything#

    Nor the ast week& a lot of attention has %een focused on the comany '' ro%a%ly more than

    their fair share&N said "en Kallo& an analyst with Ro%ert W# "aird# NWhen 3lon -usk tweets&

     eole write articles seculating a%out what it is#N

    The co,%an25s stoc7  rose more than . ercent after -usk tweeted -arch .: a%out a NmaorN

    announcement that ended u %eing the financing rogram# Wall Street was actually more eBcited

    a%out the tweet than a%out the news itself& which was followed %y a dro in TeslaGs stock& %ut

    -usk nonetheless succeeded in %ringing a sotlight to an unseBy sales techni2ue#

    M#s7 has ,ore than *9+))) followers on Twitter& and he deftly uses the social media latform

    to dish out tid%its a%out the three comanies heGs currently involved in; SaceC& Tesla and Solar 

    +ity# !t hels that -usk is an esoteric %illionaire who dreams of sending humans to -ars#

    FSEC r#les sa2& in effect& if youGre going to disclose news a%out a su%ect& you have to disclosefully a%out it&N he said# The fact that the stock market reacted to the tweet only makes it more

    likely regulators may crack down on -uskGs vague missive& he said#

    Mar7 =a3,an+ a ,ar7etin& e3%ert at consulting firm +"! in San )ose& also cautioned that

    -uskGs strategy risks investor fatigue# NEromising a news release a week %reaks a cardinal rule of 

    media relations; To only romote when you have something worthwhile to say&N he said#

    "ut Tesla still has hurdles# !tGs legally %attling dealer associations in several states for the right to

    sell cars directly to consumers# The -odel S starts at I7M&/// and goes to I4./&///& giving some

    consumers sticker shock#

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    TESLA GS 0ISTRIBUTION STRATE;Y:

    Tesla has changed the dreaded eBerience of %uying a car 

     

    Falleries in highly oulated shoing centers* galleries have over 4 million visitors and.: of them go for a test drive,

      "uying eBerience tailored to customers life schedule

      The =S auto market has lots of %arriers to entryQcaital investments in factories& the

    need for high'end T1 sots& and incentives for dealers chief among them# The

    conventional wisdom is that no car could comete without winning over the showroom

    floor#

      "ut Tesla& the comany started %y tech %illionaire 3lon -uskQwho sidelines as the

    SaceC ioneerQhas disruted that aradigm#

    Tesla is ursuing a comany owned store and service center model for;

     

    Reaching eole %efore they make a decision on a new car 

     

    airness J franchising

     

    Service coverage

     

    +onflict %etween gasoline and electric

      =nlike other electric cars like the +hevy 1olt& Tesla has no dealer network and doesn$t

    engage in any traditional advertising# The comany has no +-? and only a small

    marketing team#

      Desite the fact that a handful of states& including TeBas and 1irginia& have recently

     %anned Tesla sales via traditional channels& the sleek electric cars are oing u on

    roadways all over the country# The music'cum'%oomtown of Austin& TeBas sees hundreds

    of Teslas on its streets& desite the statewide %an on their sale#

      Thirty'five high'tech storefronts across the =S& Asia and 3uroe& do some of Tesla$s

    advertising for them# They$re set u like Ale Stores& in uscale shoing malls and on

    strategic ur%an thoroughfares# +urious assers%y slow down to take ictures on their 

    smarthones and ost them on social media#

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      The rest of Tesla$s “advertising” is done %y curious ournalists and online commerce#

    With less than 4/&/// cars sold worldwide& the Tesla nameQand its stock riceQcarries

    more %u(( than revenue *the comany only recently osted its first 2uarterly rofit,#

      "ut ournalists love to cover the story of the technology and the %ullish entrereneur 

     %ehind it# !n fact& %ecause it$s relatively difficult to %uy a Tesla *its I8/&/// entry'level

     rice tag notwithstanding,& there$s a certain aeal of going rogue#

      Since state governments aren$t a%le to effectively %an online sales& Tesla enthusiasts can

    customi(e their rides& ay their deosits and wait M/ days for a delivery#

    TESLA"S MAR>ETIN; COMMUNICATIONS STRATE;Y:

    Wants to %e e2uated to a remium American %rand# -arketing o%ective is to raise %rand

    awareness and increase traffic to their we%site in order to increase sales

      Target growing luBury sedan market

      =tili(e cele%rity endorsers

      Advertise highly visi%le events * academy awards,

      We% %ased short films

      Ad camaigns %ased on ; “reconcetuali(ing the car %uying eBerience”

     

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    Tesla"s c#rrent ,ar7etin& strate&28 to $e the $est car e1er ,a!eH

    At the core& Tesla motor %elieves that electronic cars should not %e erceived as a sacrificial

    mode of transortation# Tesla has %rought the %est of %oth the automotive and technological

    worlds together %y etching the image of electric cars %eing a ste %ackwards in erformance&

    efficiency and design# They have set out to forever change the ercetions associated with

    electric vehicles& as well as roviding electric vehicle as a via%le alternative# Their cars are

    efficient& fun to drive and out there to save the lanet#

    The 'olloin& are Tesla"s core 1al#es8

    • A +lean start' moving fast and constantly innovating#

    • +ommitment to 3lectric' offers the most efficient ath to sustaina%le energy& no hy%rid&

    no hydrogen# -akes the %est electric car and train in the world#

    • "uilt around the Driver' the driver& the car and the environment connect in ways they

    have never connected %efore#

    • Sarking the evolution' the goal is to accelerate the world$s transition to electric mo%ility#

    Tesla$s %rand strategy is to B#il! a $ran! itho#t s%en!in& ,#ch on a!1ertisin&@  The +3?

    of the comany tweets a%out new advancements& eole ay online and ractically a lot of things

    are done on social media# Tesla -otors does not have a conventional marketing and %randing

    strategy# The comany has several alications on devices like iEhones# The most uni2ue %eing

    controlling the car through a watch# Tesla is highly active in the social media world# "e it

    mo%ile alications or Twitter#

    !n the advertisement “gallons of light” Tesla motors oints out to the viewers& the oys of “no

    longer taking from the earth %ut acceting from the sun”# "y driving the Tesla car& a family

    contri%utes so much to the environment# All of Tesla$s ads have highlighted this one thing#

    =h2 sellin& cars in In!ia ,a2 $e Tesla"s to#&hest challen&e 2et

    Tesla is working on its third'generation car Q a smaller and afforda%le four'door sedan code

    named Tesla -odel 0 Q to target emerging markets like !ndia#

    21

    http://economictimes.indiatimes.com/taglist.cms?query=Tesla%20Model%203http://economictimes.indiatimes.com/taglist.cms?query=Tesla%20Model%203

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    To co#nteract the %rice iss#e& the car comany is working on a smaller& afforda%le sedan code'

    named UTesla -odel 0V for emerging markets& according to the 3conomic Times#

     Tesla$s -odel S can cost over Rs7&4//&/// *I4//&///,& %ut the comany is looking to go for a

    cheaer rice tag of Rs4&5//&/// *I0/&///, to Rs.&9//&/// *I9/&///, in !ndia# !t lans to %uild

    an assem%ly lant here as well#

    Ca#se o' concern:

    The electricit2 shorta&e and the infrastructure ro%lems are going to much tougher to crack 

    0es%ite health2 &roth in assenger vehicles& “the electric vehicle *31, sector in !ndia&however& continues to struggle&” according to !ndia Auto Reort#

     “The idea of ‘going electric’  remains a hard one to sell to an average )oe in !ndia&” it adds#

    In!ia has one o' the hi&hest i,%ort !#t2  in the world Q in eBcess of 4// Q that goes

    against our rincial of imorting car directly from our lants at reemont in the =S and given

    the strict rulesO olicies there are very less chances of setting u a lant#

    R e1a+ !ndia$s first commercial electric car that has %een around for over a decade& didn$t findmany takers& selling fewer than :// cars a year# “We are struggling to maintain a healthy sales

    traction +oncerns over %attery and the higher rice comared to etrol or diesel vehicles have

    also worked against customer accetance&” said +hetan -aini& +3? of -ahindra Reva told The

    3conomic Times#

    The In!ian &o1ern,ent is tr2in& to %ro,ote   the use of electric vehicles with its 6ational

    3lectric -o%ility -ission Elan ././ *ED,& under which it lans to invest Rs49&/// crore *I.#.:

     %illion, to %uild the infrastructure re2uired for electric vehicles# "ut rogress has %een very

    slow so far and !ndia far lags the rest of the world in overall electric vehicle urchases#

    Tesla"s $alance sheet is i,%ressi1e and the comany has racked u steady sales increases over 

    the last siB 2uarters& artly %ecause there is an aetite for electric and hy%rid cars in the =S and

    3uroeQtwo of its %iggest market# The comany is %uilt on a willingness to invest without

    hoing for immediate rofits& and they$ve sent months trying to woo +hina#

    22

    http://economictimes.indiatimes.com/industry/auto/news/passenger-vehicle/cars/tesla-to-enter-india-with-new-sedan-at-attractive-price/articleshow/45210985.cmshttp://green.blogs.nytimes.com/2013/01/04/grid-problems-curb-indias-electric-vehicle-appetite/?_r=0http://economictimes.indiatimes.com/passenger-vehicle-to-grow-faster-than-2-wheeler-in-next-5-yrs-frost-sullivan/articleshow/34958711.cmshttp://indiaautoreport.com/part-evs-india-massive-potential-enough-charge/http://articles.economictimes.indiatimes.com/2014-04-04/news/48866978_1_mahindra-reva-ultra-motors-electric-two-wheelershttp://articles.economictimes.indiatimes.com/2014-04-04/news/48866978_1_mahindra-reva-ultra-motors-electric-two-wheelershttp://dhi.nic.in/NEMMP2020.pdfhttp://www.livemint.com/Industry/vGQ4bqUDEnQZtTeSOwRsBP/India-chases-electric-mobility-dream.htmlhttp://www.livemint.com/Industry/vGQ4bqUDEnQZtTeSOwRsBP/India-chases-electric-mobility-dream.htmlhttp://qz.com/275725/elon-musk-is-the-true-successor-to-steve-jobs/http://qz.com/275725/elon-musk-is-the-true-successor-to-steve-jobs/http://qz.com/275725/elon-musk-is-the-true-successor-to-steve-jobs/http://qz.com/169918/unlike-its-rivals-tesla-says-it-will-sell-cars-in-china-for-the-same-price-as-in-the-us/http://economictimes.indiatimes.com/industry/auto/news/passenger-vehicle/cars/tesla-to-enter-india-with-new-sedan-at-attractive-price/articleshow/45210985.cmshttp://green.blogs.nytimes.com/2013/01/04/grid-problems-curb-indias-electric-vehicle-appetite/?_r=0http://economictimes.indiatimes.com/passenger-vehicle-to-grow-faster-than-2-wheeler-in-next-5-yrs-frost-sullivan/articleshow/34958711.cmshttp://indiaautoreport.com/part-evs-india-massive-potential-enough-charge/http://articles.economictimes.indiatimes.com/2014-04-04/news/48866978_1_mahindra-reva-ultra-motors-electric-two-wheelershttp://articles.economictimes.indiatimes.com/2014-04-04/news/48866978_1_mahindra-reva-ultra-motors-electric-two-wheelershttp://dhi.nic.in/NEMMP2020.pdfhttp://www.livemint.com/Industry/vGQ4bqUDEnQZtTeSOwRsBP/India-chases-electric-mobility-dream.htmlhttp://www.livemint.com/Industry/vGQ4bqUDEnQZtTeSOwRsBP/India-chases-electric-mobility-dream.htmlhttp://qz.com/275725/elon-musk-is-the-true-successor-to-steve-jobs/http://qz.com/169918/unlike-its-rivals-tesla-says-it-will-sell-cars-in-china-for-the-same-price-as-in-the-us/

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    B#t e1en the chea%er Tesla Mo!el  is going to have a limited ool of %uyers in !ndiaQthe tiny

    grou of millionaires trying to roect themselves as environmentally conscious& said Deeesh

    Rathore& managing director of 3merging -arkets Automotive Advisers& a consultancy#

    “!t will %e good as an image %uilder %ut it in most cases it will %e a second car&” he added#

    T3SLA -?T?RS in !ndia could target the higher income customers who have environmental

    concerns and would like to get associated with such cause related roducts# !n this way the Tesla

    motors could %ag a lace in their garage as “the second car”#

    CBBE MO0EL:

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    #

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    with-new-sedan-at-attractive-price/articleshow/4%2#&!'%.cms  http://www.$usiness-standard.com/article/pti-stories/keen-to-enter-in-india-$ut-high-import-duty-a-

    road$lock-tesla-##4###!&&4(#.html   http://www.teslamotors.com/a$out

      http://intercaresolutions.com/wp-content/uploads/2/&)/*reakout+ession-

    ,esigningellnessrogramsor0our1ulture.pdf 

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