Problem 1. Strategy and Productivity Assessment

The table below (also included in the Excel data set) summarizes Tesla Fourth Quarter & Full Year 2017, 2016 and 2015 Updates and previous years. (Note: Tesla changed some of their accounting practices in 2016, so their financial information is broken out a little differently in their 2016 report. The data set updates the 2013-2015 years to the new breakout).

Conduct an analysis of Tesla's productivity and fill in the table below:

1. Single factor of $ Total Revenue to $ Cost of Revenue over the past five years

1. Multi-factor productivity of $ Total Revenue to ($ Cost of Revenue + Operating Cost) over the past five years.

(all dollars are in thousands)	2013	2014	2015	2016	2017
Total Automotive Revenue	$2,013,496	$3,198,356	$4,046,025	$7,000,132	$11,758,751
Expenses
Cost of Revenue	$1,557,234	$2,316,685	$3,122,522	$5,400,875	$9,536,264
Operating Expenses	$517,545	$1,068,360	$1,640,132	$2,266,597	$3,854,573
Total Expenses	$2,074,779	$3,385,045	$4,762,654	$7,667,472	$13,390,837

Table 1. Tesla Automotive Financial Summary²

	2013	2014	2015	2016	2017
Single Factor Productivity
Multi-Factor Productivity

1. Based on your analysis of their productivity, how is Tesla doing in terms of utilizing capital efficiently and what other factors might you consider in this assessment?
2. Identify how producing a battery-powered semi-truck fits into Tesla's overarching strategy. Incorporate concepts such as positioning strategy, product design, sustainability and globalization into the discussion.