Tesla Motors Investor Presentation: Jeff Evanson

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Tesla Motors Investor Presentation

January 2014

Jeff Evanson
VP Investor Relations
Safe Harbor Statement

Certain statements in this presentation, including statements relating to Model S demand,


market share and gross margin; future manufacturing expansion, future store, service
center and Supercharger network opening and expansion plans; and statements regarding
future vehicles such as Model X and Gen III are “forward-looking statements” that are
subject to risks and uncertainties. These forward-looking statements are based on
management’s current expectations, and as a result of certain risks and uncertainties,
actual results may differ materially from those projected.

The following important factors, without limitation, could cause actual results to differ
materially from those in the forward-looking statements: delays in the ramping of production
capacity and delivery of Model S, including the ability of suppliers to supply parts at desired
quality levels and quantities; market acceptance of electric vehicles in general and new Tesla
vehicle models, specifically Model S, Model X and Gen III; Tesla’s ability to control the costs
associated with our business; Tesla’s ability to establish, maintain and strengthen the Tesla
brand; Tesla’s ability to execute on its retail strategy and for new store, service center and
Supercharger openings; potential difficulties in finding suitable Tesla store, service center and
Supercharger sites as well as the risks and uncertainties identified under the section
captioned “Risk Factors” in our quarterly report on Form 10-Q filed with the SEC on
November 8, 2013. Except as required by law, Tesla disclaims any obligation to update
information contained in these forward-looking statements.
Introduction
“Our goal when we created Tesla a decade ago was the same as it
is today: to drive the world’s transition to electric mobility by bringing
a full range of increasingly affordable electric cars to market.”
-Elon Musk | CEO
Corporate Overview
Founded: 2003
Employees: ≈6,000
Retail Locations: 100+
Tesla 190
Electric Miles millio
Driven: n

Headquarters Tesla Factory Tesla Assembly Design / Advanced Eng.


Palo Alto, California Fremont, California Tilburg, Netherlands Hawthorne, California
Solid Foundation
For Future Success
Brand

Partnerships

IP Leadership

Financial

Management
Comprehensive Capabilities
Direct feedback loop accelerates development

Design Engineering Mfg Stores Service Charging

Value Chain Customers


Tesla Culture
Our Greatest Asset Move Fast
Do the
Impossible
Constantly
Innovate
Reason from “First Principles”
Think Like Owners
We are ALL IN
Roadmap
Culture Drives Success
Proven by Model S

1. Streamlined
Development
• Developed
in ≈2 years
• Cost to
market ≈$650 million

2. Better
vehicles
• “The best
car we have ever tested”
Consumer Reports
3. Superior
Economics
• Profitable
on low volume
Leading F-Segment Vehicles
US Units Sold YTD thru Q3’13

16,000

14,000

12,000

10,000

8,000

6,000

4,000

2,000

- Tesla Model S MB S-Class BMW 7-Series Lexus LS BMW 6-Series Audi A7 Porsche
Panamera
Invest to Grow
Vehicles, Production, Customer Support

Vehicles

Production

Customer Support
Strong Growth Potential
Tesla 2013 Market Share

2-3% of the U.S. premium auto market


(with minimal penetration)

≈ 1% of the global premium auto market

≈ 0.02% share of the global auto market

T
Expand Production
Supply Chain & Capacity

Suppliers

Production Capacity
Customer Support
Stores & Service

55 retail outlets in North America


24 in Europe
4 in Asia

More stores & service centers


coming
Customer Support
Supercharging

Today 2015

Free long distance driving, forever


Vehicle
s
Units

Time
Tesla Product Strategy
Better Driving at a Lower Price
$$

$$$

$$$$
Units

3rd Generation

2nd Generation

1st Generation

Time
0 - 60mph: 3.7 seconds • EPA Driving Range: 244 miles • Base Price: $109,000
Model S - Most Awarded Car of 2013
Your Only Car
Most Capable & Convenient

Over 80% of Tesla owners use Model S as their primary vehicle


Model X
A New Vehicle Category

Functionality, style & performance


Dual motor AWD
Starts production late 2014
Gen 3
Next Vehicle Platform Targets

D-segment sedan
Available in ≈3 years

Base price $30-35K

Tesla performance & range


Category-leading gross margin
Corporate Capabilities
Design
Inspired by the endurance athlete
Blend of aerodynamics and beautiful design
Incredible interior utility and cargo space
Details: Door Handles, Charge Port, Key,
Panoramic Roof
Vehicle Engineering

Entirely in-house team


All aluminum chassis construction (Extrusions, stampings, and castings)
Lightweight, low center of gravity & high torsional rigidity
5-star NHTSA rating
Powertrain Engineering
Integration Value: A system that is greater than the sum of its parts

Small Cells Battery Inverter Motor Gear Box


Software Engineering

Advanced software
Core focus and Tesla DNA
- Battery Management
- Motor Control
- Diagnostics
- Touchscreen
- Traction and Stability Control
Customizable and upgradable
Powertrain Manufacturing
Highly scalable
Superior cost dynamics
Trade secret
methodologies

Vehicle Manufacturing
Efficient
Multi-platform
Superior ECO throughput
Reinventing Sales
Distribution & Marketing Combined

Superior customer experience


Streamlined purchase
process Direct relationship
Capture retail mark-up
More efficient

Santa Monica Store


Reinventing Service
Best Service is No Service

Valet Loaner Service

No Scheduled Maintenance Ranger Remote Service


Questions?

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