PLEASE ANSWER THE DISCUSSION QUESTIONS BELOW:

1. How effective is Teslas direct sales model? 2. Should Tesla consider other channels of distribution? 3. Should Tesla focus on domestic or international growth? 4. Can Tesla make more money selling cars or licensing their technology? 5. Will Tesla need to issue more stock? 6. Can Tesla convince consumers to buy all electric cars? 7. Should Tesla produce more models?

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 Rav4 SUV. Founded by Martin Eberhard and Marc Tarpenning in 2003, Tesla went public in June 2010 with IPO at $17 a share, raised $226.1 million in its first stock debut. Since Elon Musk took over as the CEO, Tesla has been one of the most 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 FY Sales: \$116 millions CASE 30 Tesla Motors, Inc. : The First U.S. Car Company IPO Since 1956 IV. CASE OBJECTIVES 1. To discuss product innovation: all electric automobiles. 2. To discuss new product development. 3. To discuss domestic and international growth opportunities. 4. To discuss licensing proprietary technology. 5. To discuss retail sales. VI. DISCUSSION QUESTIONS 1. How effective is Tesla's direct sales model? 2. Should Tesla consider other channels of distribution? 3. Should Tesla focus on domestic or international growth? 4. Can Tesla make more money selling cars or licensing their technology? 5. Will Tesla need to issue more stock? 6. Can Tesla convince consumers to buy all electric cars