Part 1: What do we learn from the data in case Exhibit 3 and the accompanying discussion of the electric vehicle segment of the global automotive industry?

Select yes for those statements that accurately describe the data in case Exhibit 3, and no for those that do not.

a. The data reveals the growing sales of electric vehicles in the U.S. and across the world.

(Click to select) Yes No

b. The data further reveals that governments have put added pressure on consumers to switch from gasoline-powered vehicles to electric-powered vehicles.

(Click to select) Yes No

c. Discussions further reveal that significantly stronger competition is coming in this segmentall major manufacturers are planning to introduce multiple models of electric vehicles in the 2018-2020 period.

(Click to select) Yes No

d. Tesla is not concerned with new manufacturers introducing electric vehicles, they believe being the first to market makes them a strong contender.

(Click to select) Yes No

e. Tesla vehicle demand will grow stronger in Europe and China as it weakens in the U.S.

(Click to select) Yes No

f. It is possible that many U.S. buyers may opt to purchase other brands of electric vehicles, especially if/when the models offered by other manufacturers have meaningfully lower price tags than those offered by Tesla.

(Click to select) Yes No

Part 2: What are the issues/problems that Elon Musk and other members of Teslas top management team need to address as of mid-2018?

Select yes for those statements that accurately describe issues that Tesla needs to address, and no for those that are not a priority.

a. Whether and how fast to boost production capabilities for the Model 3.

(Click to select) Yes No

b. How much to spend currently on R&D for the Tesla Semi and the Model Y? Does the planned development, production, and introduction of these models need to be delayed by several months in order to conserve on near-term capital requirements, postpone further issues of debt or equity, focus most all resources on production and sale of models S, X, and E, and prove the companys profitability?

(Click to select) Yes No

c. Will the demand for Tesla electric vehicles in China prove to be strong and sustainable?

(Click to select) Yes No

d. How fast to proceed with construction of a production plant in China? Is more time needed to evaluate/determine the companys ability to finance the construction of this plant and install the needed production equipment?

(Click to select) Yes No

e. How fast to expand the network of recharging stations in the United States, Western Europe, and China?

(Click to select) Yes No

f. What happens to buyer demand for electric-powered vehicles if gasoline prices stay below $3.00 per gallon and expectations become widespread that they might remain there for several years or even much longer?

(Click to select) Yes No

g. Whether to continue expansion of their Gigafactory in order to increase production.

(Click to select) Yes No

h. As Tesla begins to sell more and more vehicles annually in the United States, will traditional automobile dealers start to clamor loudly for strict enforcement of state laws prohibiting automobile manufacturers from selling direct to motor vehicle buyers.

(Click to select) Yes No

i. Whether to increase R&D spending to stay ahead of the competition.

(Click to select) Yes No