CASE $30$

Tesla Motors, Inc.: The First U$.$S$.$ Car Company IPO Since $1956$

I. CASE ABSTRACT

Tesla Motors, Inc. is in the business of developing, manufacturing, and selling technology for high$-$performance electric automotives and power train components. Hoping to develop a greater worldwide acceptance of electric vehicles as an alternative to the traditional internal combustion, petroleumbased vehicles that dominate the market, Tesla is the first company that commercially produced a federally compliant electric vehicle with the design styling, and performance characteristics of a high$-$end performance automobile. Tesla currently offers one vehicle, the Roadster, for sale, as well as supplying electric power train components to Daimler for use in its Smart EV automobile. Additionally, Tesla has a partnership with Toyota Motors to develop and supply an electric power train for Toyota's Rav$4$ SUV.

Founded by Martin Eberhard and Marc Tarpenning in $2003,$ Tesla went public in June $2010$ with IPO at $$17$ a share, raised $$226\mathrm{.}1$ million in its first stock debut. Since Elon Musk took over as the CEO, Tesla has been one of the fnost innovative automotive producers in the world, earning recognition through the Global Sustainability Innovation Award in $2009.$ Tesla purchased former NUMMI factory in Fremont, California, the most advanced and cleanest automotive production plant in the world. Both Daimler and Toyota have also invested $$50$ million each to form strategic alliances. Tesla will provide electric vehicle $($EV$)$ expertise for their car development, while Toyota and Daimler will provide opportunities for Tesla to diversify its revenue streams, network, and access to extensive supply chains.

Decision Date: $2011$

II$.$ CASE SUBJECTS AND ISSUES

Industry Analysis

Strategy Formulation

Strategy Implementation

Core Competencies

Retail Marketing

Marketing Strategy

FY Sales: $$116$ millions

FY Net Loss: $($$$154,328)$ millions