Tesla Company Review - October 2016

TESLA COMPANY REVIEW
OLMA NEXT LTD OCTOBER 2016
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This company review has been prepared by Frédéric Bonelli at the request of
OLMA Next Ltd.
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electric car manufacturer which might possibly change the car industry and
more.
2
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Frédéric Bonelli

OLMA NEXT LTD OCTOBER 2016 3
TESLA MOTORS INC.
TESLA HAS ADOPTED DIGITAL TECHNOLOGIES LIKE A TRUE DIGITAL
T H O R O U G H B R E D E S P E C I A L LY I N B R A N D M A R K E T I N G A N D
FUNDRAISING. IT HAS DISRUPTED THE TRADITIONAL PATHS TAKEN
BY CARMAKERS AND AIMS TO BECOME THE FIRST FULLY
VERTICALLY INTEGRATED ENERGY COMPANY

INTRODUCTION
Much more than just an electric car manufacturer
Tesla Motors’ share price increased from $27 to $250 between January 2012 and October
2014. Its price to sales ratio is more than 6 while those of traditional carmakers are less
than 0.5. Tesla is not a simple electric vehicle designer and manufacturer, just as Apple
was not simply a PC brand in 2000 and was not just an mp3 producer in 2001. Comparing
Tesla to other car manufacturers is like comparing Apple to IBM.
Elon Musk, the man behind the story, really does “think differently”:
Money is not the problem
Nothing is impossible, until it really is
Nothing is too far from the core business as long as it serves it
Acceleration is the key, at almost any price or level of risk
Goal delivery date is just a management/fundraising trick
Late is meaningless as long as you deliver a tremendously good product
If the market is not there yet, create it
Due to the infancy of the EV2 market, Tesla’s strategy is to push across all fields:
Software: proprietary vehicle autopilot technology

Energy: battery production and sales (Gigafactory)
Recharging infrastructure: worldwide supercharger network
Services: from vehicle after sale service to Tesla Mobility, the “PtoP taxi service”
Tesla manages a progressive focus shift from “sustainable transport” to “sustainable
energy”:
SolarCity acquisition for PV cell production and installation - yet to complete,
subject to shareholder approval
Solar roofs for home, utilities and cars
Solar farms to sustain electricity demand off the grid
Battery packs for home, commercial and utilities
Software
Vehicles
Batteries
PV1 Cells
ELECTRICITY TRANSPORTATION
SOLARCITY
GIGAFACTORY
BTOB
BTOC
for the home:
Powerwall
for commercial and utilities:
Powerpack
for carmakers:
Batteries
vehicles:
Chassis I: Roadster
Chassis II: Model S, Model X
Chassis III: Model 3, Model Y
services:
SuperCharger Network
Tesla Mobility (PtoP taxi service)
for carmakers:
Electric Powertrain
TESLA MOTORS INC.
CLIENTS: Amazon AWS, Smart, Daimler, Toyota
1 PV: Photovoltaic 2 EV: Electric Vehicle

GIGAFACTORY
NEVADA
SOLARCITY
SAN MATEO
PV CELLS
FREEMONT
VEHICLES
FACTORIES
Cars: Model S, Model X, Model 3
Software: Tesla mobility
BATTERIES
HEADQUARTERS
PALO ALTO
For cars: Battery pack
For homes: Powerwall
For utilities: Powerpack
For cars: EV solar roof
For homes: Solar Roof
For utilities: Solar Roof
Solar Farm: direct to the grid
SUPERCHARGERS
For cars: Charger stations
5
BUSINESS GLOBAL OVERVIEW
SUPERCHARGER STATIONS
POWERPACK POWERWALL
EV BATTERY
EV SOLAR ROOF
HOME SOLAR ROOF
CHARGERS SOLAR ROOF
UTILITY SOLAR ROOF
AUTOPILOT
Beyond EV manufacturing, the vision of Elon Musk for Tesla Motors is to create the first
fully vertically integrated energy company, from energy generation to installation to
storage to application. Tesla will generate power from the sun, store energy in batteries and
use batteries to power vehicles and buildings.
Such a plan requires a sharp focus on vertical integration and a willingness to build huge
production facilities.
PV CELLS
SOLAR WIND COAL NUCLEAR
TESLA MOTORS INC.

TSLA (NASDAQ)

TO DATE
It can be challenging to keep up with the CEO of Tesla Motors, Elon Musk.
He reveals “Master Plan Phase 2” of his vision, a “solar/electric 360°
society”:
For the home
Powerwall batteries + Solar Roof for charging
For commercial and utility
Powerpack + Solar Roof for charging
For transportation
Tesla EV full line + revolutionary Solar Roof for charging
Such a project has a significant cost. Let us put Elon Musk’s objectives
into perspective:
TESLA 2018 PRODUCTION GOALS
500,000 Tesla Model 3 EVs
=
2015 worldwide total EV production
500,000 batteries for the Gigafactory
=
2013 worldwide total Li-ion battery production
2016 SITUATION ASSESSMENT:
$2.73b of funds raised by Tesla since 2009 (equity and debt)
$3.25b of debt raised by SolarCity1 ($1.23b due by the end of 2017)
Completion in May 2016 of 14% of the Gigafactory building2
60,000 cars are expected to be produced in 2016 by Tesla
2-year launch delay for the “multi-bugged” Model X
$80b
$40b
1900 1930 1960 1990
$60b
$58b
$32b
$21b
2015 Market
Capitalisation
TESLA
Founded: 2003
2003
1 Photovoltaic roof production and installation business merged with Tesla in August 2008
2 Battery production (cars, home, commercial and utility)
Vehicle
Sales
GM
Founded: 1908
FORD
Founded: 1903
FIAT
Founded: 1925

370,000 Model 3
reservations with
down payment only
(equivalent of $14b
in future sales)
Model 3
unveiled
7
TIMELINE
’03 ’06 ’07 ’08 ’10’09 ’12’11 ’13 ’14 ’15 ’16 ’20
FOUNDED
’17
Public
presentation
of the
Roadster
prototypes
Sale of two
sets of 100
roadsters
1st retail store
in LA, 2nd in
Menlo Park
Model S
unveiled
Strategic
partnership
with Toyota
Roadster
orders
stopped
Model X
unveiled
Model S
deliveries
begin
1st
partial
recall
Model X
production
begins
80% of US
population
covered by
Supercharger
stations
Supercharger
station
building begins
8 May 2015
Acquisition of
Riviera Tool
(die stamping
systems)
’18
All Tesla Patents
are released free for
other companies
Fremont,
California
Car Factory
1st
partial
recall
1st death
using
autopilot
+1,000%
+500%
0%
-250%
20162014201220102008
TSLA share price vs S&P 500
1x China
2x Europe
Car Factories
Gigafactory
Nevada
Battery
Factory
Model 3
production
planned to
begin
500,000 vehicle
production target
29 June 2010
IPO
on NASDAQ
22 June 2016
Acquisition of
SolarCity
announced for
$2.6b in Tesla
shares

1/7 MARKET, ASSETS & PRODUCTS: PRODUCTION SITE & HR
Car factory
The Fremont factory in California is one of the largest buildings in the world
with 5.3 million square feet of manufacturing and office space. Tesla has
been acquiring space in other locations close to the factory to expand its
operations, adding a total of over 1 million square feet of production or
warehouse space in the region.
In June 2016, Tesla appointed Peter Hochholdinger as Vice President of
Vehicle Production. He was previously responsible for leading the
production of Audi’s A4, A5 and Q5 vehicles, including 14 derivatives of
those models and managed production of about 400,000 vehicles annually
at Audi.
But
Greg Reichow, Tesla's Vice President of Production and one of its
highest-paid executives and Josh Ensign, Vice President of
Manufacturing, left Tesla. This brings to five the total number of Tesla
vice presidents who left the company in 2016.
Expansion of factory operations will mean tooling up new production
lines, which will cost significant amounts (more than the down
payments received for around 370,000 Model 3 at $1,000 each).
Now that Tesla has delivered the ”Proof of Concept”, and the potential
for a rising EV mass market if vehicle design and performance is equal
to that of ICE1 cars, all carmakers have announced EV launches
for 2018-2020 with significant R&D budgets: timing is now the
key.
2012 2014 2016 2018e 2020e
100k
200k
300k
400k
500k
TESLA VS FORD MODEL T
PRODUCTION MILESTONES
2012 2014 2016 2020e 2022e
200k
400k
600k
800k
2018e
WORLDWIDE DEMAND FOR
ELECTRIC PASSENGER CARS
2024e
Tesla Motors
sales and forecast
Ford Model T
1909-1916
1 ICE: Internal Combustion Engine
Nº of
Vehicles
Tesla Motors key figures:
Fundraising and Debt: $2.73b
Factory production: 60,000 vehicles expected for 2016
2018 vehicle battery production goal: 500,000 vehicles -
-
Nº of
Vehicles

2/7 MARKET, ASSETS & PRODUCTS: SALES, CHARGING NETWORK & BATTERIES
Tesla car sales
Now that other carmakers plan on investing significantly in EV to fill in the
gap, how long will Tesla cars remain the best EVs on the market? Why
could Tesla become the leading brand in the EV market from scratch in
less than a decade? Is the ”Open Source Patent strategy” a major mistake
or a masterstroke from the visionary Musk?
Here are some facts and figures to help build answers to these questions.
1. Supercharger network
Tesla has invested heavily in its charger network. It plans to double its
supercharger network in 2017, reaching 1,300 stations worldwide (North
America, Europe and the Asia-Pacific regions) with a total of more than
7,000 individual chargers. Tesla also regularly updates its charger
technology, which is by far the world’s fastest recharging system. This
system enables recharging of a Model S giving up to 160 miles autonomy
in less than 30 minutes. Charging is currently free for any Tesla owner.
2. Price/range ratio and battery technology
Until 2016, Tesla had the lowest price to range ratio in the market: this is
the result of all Tesla technologies combined and especially the proprietary
battery design.
No other carmaker is managing its own battery technology and production
and thus they depend upon availability from suppliers. This will be a
problem when the EV market gathers pace.
Tesla is on the way to resolving the production delay issue of its
Gigafactory. This should give Tesla a strong advantage to bring operational
costs down and maintain the cheapest cell cost in the EV industry.
The cost of the battery equals 25% of the total price of an EV in 2016. This
is why Chevrolet had to lower the autonomy of its Volt model to compete
with Tesla’s Model 3 price.
Car Price*
THE ELECTRIC CAR MARKET WORLDWIDE 2016
150
$25k
$100k
3000
Range
(in miles)
Q1:

EXPENSIVE

LOW RANGE
Q2:

EXPENSIVE

GOOD RANGE
Q3:

AFFORDABLE

LOW RANGE
Q4:

AFFORDABLE

GOOD RANGE
Ford Focus Electric
Chevy
Spark
Nissan
Leaf
Chevy Volt ‘17
Tesla
Model 3
Tesla Model S
VW E-Golf
Kia Soul EV
BMW i3
Tesla Model X
*after tax credit
Tesla Supercharger Network: no other carmaker has done this yet. It is now free for life
for any Tesla customer. This is a huge competitive advantage.
There are 90,000 service stations in the US, while EV charging stations have now
reached 40,000 (ChargingPoint + Tesla)
-

3/7 MARKET, ASSETS & PRODUCTS: STRATEGY, MARKET & IP
3. Top down strategy
Classical disruption theory suggests that most entrants start at the bottom of
the performance curve and slowly work their way up until they can eventually
overtake incumbent technologies.
With the Supersport Luxury Liftback Model S, Tesla started at the absolute
top of the performance curve. This strategy has worked incredibly well for the
carmaker as it continues to execute on its vision.
4. EV focused and market momentum
Tesla Motors is the only sizeable carmaker focused solely on EVs1 and the
only EV company to own both battery technology and a production facility.
All trends and studies confirm high market demand for lithium-ion batteries
over the next 5 years. They also predict significant technological advances
that will lower price and recharge time as well as increasing power and
overall lifetime. Thus the Panasonic co-owned Gigafactory has a strong
competitive advantage.
5. Open Source patents
In June 2014, Elon Musk stated that all Tesla patents will become “Open
Source”, meaning that any person may freely use one or several of them. It is
most likely that he will deliver on his promise but it is interesting to read
between the lines:
No patent has been canceled so far
Do not confuse patent with trade secret: some parts of the Tesla
factory and the Gigafactory will never be open to the public
With an industrial open patent portfolio, it is a case of releasing the
technology “as-is”; Tesla has probably already exceeded released
patents in terms of technological progress
6. Partnerships
Until the establishment of the Gigafactory with Panasonic, Tesla had
partnered with Daimler and Toyota, which built electric powertrain units for
some of their future EVs. These partnerships were seen as a sign of maturity
and acknowledgment for Tesla as a car company. They both invested in Tesla
shares and both have exited with huge cash-outs1. 1 Daimler’s investment of $50 million in May 2009 turned into over $780 million.
0 20k 40k 60k
Other
USA
Europe
Japan
China
PLUG-IN VEHICLES (xEV) SALES VOLUME AND % GROWTH
43
21
11
8
48
38
27
23
3
3
+102%
+36%
+27%
+19%
+0%
Number of Units Sold
2016 Q1 2015 Q1
7. Sales strategy
Part of Tesla's competitive advantage relates to its unique approach to
sales. Instead of offering vehicles through conventional dealerships, the
company has created a direct sales approach that involves the concept
of sales malls where consumers can view and inquire about the vehicles.
This drives a number of competitive advantages:
• better contact with customers
• no inventory needed
• controlled advertising
• savings on dealer’s fees

4/7 MARKET, ASSETS & PRODUCTS: MODEL 3 LAUNCH
Tesla Model 3 - The Big Leap forward
The Tesla Model 3, an all-electric four-door compact luxury sedan, was
unveiled on 31 March 2016. The first 100,000 units were pre-booked
before the public presentation. No one had seen, let alone driven one. All
the public knew was that prices start at $35,000, the range would be 200+
miles, a cash deposit of $1,000 was required and deliveries would start in
late 2017, though a 12-24 month delay is probable.
After the first public showing and over the following 3 weeks, reservations
approached 400,000 units. After reductions for bogus bookings, the
official number of reservations published in Tesla’s quarterly SEC filings
was 373,000. The current tally is probably a lot higher.
The demand is comparable to the annual global sales of Audi A4, BMW 3-
Series and Mercedes C-Class combined. This indicates the potential for
EVs with competitive price, style, space, acceptable range, superior
performance and efficiency.
“In roughly one year since our last visit, the progress
witnessed is truly stunning.”
JAMES ALBERTINE - STIFEL ANALYST - MARCH 2016
2012 2014 2016 2018 2020
100k
200k
300k
400k
500k
TESLA HISTORICAL AND FORECAST PRODUCTION VOLUMES
Roadster Model S Model X Model 3
US ELECTRIC CAR SALES
YTD AUG 2016 vs YTD AUG 2015
5,372
+21,8%
+7,4%
-2%
+71,9%
+64,1%
All EVs Total
100 Electric1 Total
Tesla Model S
Chevrolet Volt
Tesla Model X
Ford Fusion Energi
Nissan Leaf
BMW i3
7,922
9,998
10,000
14,295
15,000
37,863
83,303
-36%
-13,1%
$75,000 - 315 Miles - EV
$34,000 - 53 Miles - PHEV2
$80,000 - 250 Miles - EV
$34,000 - 22 Miles - PHEV
$30,000 - 107 Miles - EV
$43,500 - ~80Miles - EV
Tesla Model 3 expected end 2017 $35,000 - 215 Miles - EV
1 100 Electric: EV with a minimum range of 100 miles
2 PHEV: Plug-In Hybrid Electric Vehicle
Nº of
Vehicles

5/7 MARKET, ASSETS & PRODUCTS: THREATS
US sale regulations
State regulations in the US related to Tesla’s direct sales, along with federal
tax incentives, are going to dictate the future impact of Tesla’s product
pricing. It is not clear if and how strongly the US administration will
continue to support the EV market with consumer incentives. Also, it is
uncertain if Tesla will continue to resist the traditional car dealer lobbying
pressure, which tries to impose its multi-brand sales business model.
Cash Burn
Tesla has raised over $4.5b since the IPO in 2010. As of January 2016,
Musk owns about 22% of the company. Tesla announced in August 2016
that it will make a $2b secondary stock offering to finance its ambitious
vehicle production objective: an estimated $1.4b worth of stock will be
issued to help ramp-up production.
CEO Elon Musk will exercice his outstanding stock options (5.5m shares)
and is expected to sell 2.8m of his own shares, mainly to pay taxes related
to exercising vested stock options. After the SolarCity acquisition by Tesla
(which has been delayed due to challenges from minority shareholders),
this move seems to challenge investors and the financial world ”limits”.
Some question whether this is a bold move to dominate the EV market
and build the future of energy worldwide or simply a step too far.
Ability to reach economy of scale: from 60k to 500k cars
Disruption and ability to “think out of the box” can revolutionise but can it
also enable an EV factory that struggles to produce 80k cars in Y16 to
reach 500k cars 24 months later?
TESLA HISTORY OF DELAYS
To date, Musk has never met any past production targets. The new 2018
forecast, like the original 2020 deadline, appears unrealistic. However,
something odd happened the day after Musk moved the goalposts; even as
Tesla's stock declined, analysts and car enthusiasts almost universally
moved their own estimates for Tesla unit sales higher.
In the same report in which J Spak from RBC Capital Market warned of “the
risk to new investment” and maintained a neutral rating on the stock, he nearly
doubled his forecast for Tesla's 2020 sales, to 620,000. That is higher than
Musk's old target—the one most people considered impossible.
Roadster
Model S
Model X
Model 3
2006 201220102008 2014 2016 2018
9 MONTHS LATE
6+ MONTHS LATE
18+ MONTHS LATE
Unveiling of
prototype
First
deliveries
Initial Project
launch date

6/7 MARKET, ASSETS & PRODUCTS: BATTERIES
Batteries
Tesla´s central competitive advantage is the low cost of its battery
pack. This has allowed the company to sell its models at a reasonable
price but with a near-normal 300-mile range, a combination other EVs
have yet to match.
This competitive advantage comes from Tesla’s ability to use
commoditised small cylindrical lithium cells (used in consumer electronics)
via proprietary thermal/power management, versus prismatic “pouch”
cells.
Taking all three battery characteristics into account (cost per kilowatt hour,
specific energy and battery system efficiency), Ark Group estimates that
the cost cross-over point between a 200-mile range EV using pouch cells
and one using cylindrical cells will occur in the early 2020s. Consequently,
all other things being equal, Tesla should enjoy a five-year competitive
advantage before competing battery technology catches up. This
advantage is further reinforced through Tesla’s partnership with
Panasonic, one of the top historical Li-ion battery producers.
In the rising EV market, developing a battery maker next to the car
producing core business is a very strong competitive advantage. This
simply makes good sense for Tesla considering the huge 2018 battery
volume required for the 500,000 Model 3 production goal.
In addition to the ”Gigafactory” project, several other ”super factories”
have started in anticipation of a Li-ion battery market that needs to more
than triple by 2020.
“The Gigafactory is designed to reduce cell costs much faster than the
status quo and, by 2018, produce more lithium ion batteries
annually than were produced worldwide in 2013. By the end of the
ﬁrst year of volume production of our mass market vehicle, we expect the
Gigafactory will have driven down the per kWh cost of our battery
pack by more than 30 percent.”
TESLA CORPORATE - FEB 2014
2014
50
100
GWh
2016 2018 2020
7 GWh 35 GWh 15 GWh 20 GWh 10 GWh
WORLDWIDE LI-ION BATTERY PRODUCTION WILL TRIPLE BY 2020
2012
CURRENT DEMAND
Gigafactory key figures:
Cost: $5b
Factory building completion to date: 14%
2018 vehicle batteries production goal: 500,000 batteries

7/7 MARKET, ASSETS & PRODUCTS: PHOTOVOLTAIC CELLS
Solar Roofs
Deutsche Bank predicted in early 2015 that solar systems will be at grid
parity with up to 80 per cent of the global market within 2 years. It
also says that the collapse in the oil price will do little to slow down the
solar juggernaut.
SolarCity, with more than 2.1 gigawatts of systems in operation, has
pioneered the residential lease of solar panels, which has helped make
residential roof-tops the fastest-growing segment of the US renewables
industry.
However, PV roof installation companies struggle to find a workable
business model: installation costs are high. Reaching the 55-cents-per-
watt cost is essential to ensure that the cost structure can survive the
projected withdrawal of the ITC (Federal Investment Tax Credit). Several
companies are already bankrupt from trying to reach that limit.
In recent months, SolarCity has shifted its strategy to focus less on rapid
growth and more on finding the most profitable customers. This is where
synergies with Tesla’s customer base and 200+ unique branded
stores with their ”internet only” buying process1 can be a huge
competitive advantage for SolarCity.
Tesla also hopes to use SolarCity’s advanced technology2 to be the first
carmaker to offer high efficiency solar roofs on its cars. The company
PV panels have achieved 22% efficiency, the highest in the market to date.
“Despite the falling share prices and rising leverage, residential solar
has tremendous growth potential. Total US installations are expected
to reach 13.1 gigawatts by the end of 2018, more than double the
amount now”
BLOOMBERG NEW ENERGY FINANCE - JUNE 2016
1 In the US, 48 of the 50 States have laws that limit or ban manufacturers from selling
vehicles directly to consumers. Tesla is the only carmaker doing so.
2 In 2014, SolarCity acquired Silevo in a $200 million transaction (with an additional $150
million in performance based earn-outs) for its high-efficiency Triex technology.
1977 2000 2013
20
40
60
80
$/Watt
Price of
crystalline
silicon
photovoltaic
cells
50
100
150
250
200
GigaWatt
Global
Solar
Energy
Capacity
1990
PV CELL PRICE
VS
PV ENERGY CAPACITY
SolarCity key figures:
Cost of acquisition for Tesla Motors: $2.6b
Factory debt to date: $3.25b ($1.23b due by end of 2017)
Recourse debt to date: $1.6b

PORTER’S 5 FORCES ANALYSIS (COMPETITION LEVELS)
SUPPLIERS BUYERS
THREAT: MODERATE TO LOW
The EV industry requires 3 types of suppliers,
depending upon the products supplied:
1. Similar to ICE industry (interior and body):
They work with a low number of customers
which means dependency and bargaining
disadvantage
2. Raw materials Limited differentiation and
price sensitivity of the end consumer means a
bargaining disadvantage even if raw material
prices fluctuate
3. Specific EV industry products: Tesla is
very reliant on its suppliers. Any issue with
delivery will have an impact on production. But
it manages a strong partnership and in-house
production for every strategic component
(powertrain, chassis, battery pack).
THREAT: MODERATE TO HIGH
To date: Due to the lack of quality offers in the
EV segment, consumer buying power seems
relatively low. However, there is an opportunity
to choose a substitute (PHEV).
In 2-5 years time: There are 40+ EV models
expected for 2020. Tesla and BMW's own
charger networks provide a strong competitive
advantage. The Tesla brand image as a
“premium 100% EV manufacturer” is a strong
competitive advantage.
China has the biggest market potential and is
expected to have the largest car market in
volume in 2020. German brands are already
very strong with 80% of market share for the
premium car segment.
POTENTIAL ENTRANTS
THREAT: LOW
The EV industry has high entry barriers:
• large amount of capital investment
• specific set of skills and technologies
• long product development cycle
• state support for existing national manufacturers
• brand building (reputation)
China is expected to become the world’s largest EV market in 20202. This
will attract new entrants and therefore raise the risk that new players come
into the market.
SUBSTITUTES
THREAT: MODERATE
There are 3 types of potential substitutes:
1. ICE: ICE industry is still dominant, but customers are becoming more
environmentally cautious, EV cost could reach ICE cost by 2022.
2. HEV and PHEV: Have a lower level of environmental appeal than EVs.
They still require investment in technology and infrastructure in order to be
successful and reach a broad market.
3. Other transportation modes: Walking, cycling, public transportation:
none of these offer the convenience and flexibility of a car = not a direct
substitute.
INDUSTRY COMPETITORS
COMPETITION: MODERATE TO HIGH
Premium cars: Competition is very modest (very few models). The design
and production cycle is long (5-6 years).
Mass-market (Model 3): Chevrolet Volt is the real challenger and already on
sale. Several other carmakers have announced model releases for 2020.
Chinese market: Seen as of high strategic importance, China is the world’s
current largest automobile market and expected largest EV market by 2020.
Domestic Chinese companies are also expected to continue to evolve and
therefore further increase competition.

SWOT ANALYSIS
STRENGTHS
Product: With the Model S, Tesla has created and dominates the market
for luxury, long-range electric vehicles.
Production: Tesla’s vertically integrated value chain allows for cost
reduction and quality control. It has the ability to maintain a high rate of
innovation.
Brand: IT x luxury brand recognition = highest goodwill in the market as a
carmaker.
Partnership: Tesla has strong partnerships with Toyota and Daimler. It is
building the Gigafactory in partnership with Panasonic (a highly effective
strategic partner to stay at the top of the battery field)
Batteries: In-house production (Gigafactory), with proprietary form factor
and technology make Tesla’s battery pack the most efficient.
OPPORTUNITIES
Cash: Interest rates are currently low.
EV market: It remains a blue ocean for the next 2-3 years. The
competition has only just launched its ”real Tesla challenger” EV
development. Chevrolet is the most advanced with the Volt.
Oil and gas: Prices will increase.
State policy: There are strong assistance programs for EV and PV and
stricter emissions policies.
Trend: The public is more and more receptive to environmental issues.
WEAKNESSES
Cash: Tesla Motors still needs significant funds to complete the “Musk
Master Plan”: OPEX increase, with poor return on invested capital and
equity (dilution through recurrent fundraising) and high long-term
liquidity risk.
Production: It lacks the scale of operation to go mass market with the
Model 3 and the ability to downsize costs.
Innovation: R&D cost must stay very high to stay ahead of
competition in the battery field. Traditional carmakers are raising their
expectations and budget for the EV market.
Dispersion: The recent purchase of SolarCity is not closely linked to
the car sector (in the short term) and will be a time/money consumer.
THREATS
Competition: All traditional carmakers have made the shift and plan to
invest significantly to fill the gap.
Combustion engine: It still enjoys significant influence (performance/
consumption/pollution) and the average car turnover timeframe is 11
years for owners. Oil prices are expected to remain low in the short
term.
Infrastructure: Limited for EV support. There may be compatibility
issues regarding charging networks.
State policy: The EV business model depends on state incentive
programs that will decrease with market growth.
Battery: There are lithium supply constraints.
INTERNAL
EXTERNAL

PESTEL ANALYSIS
POLITICAL
+ Government incentives for EV
+ Expanding free trade agreements
+ Political stability in the majority of major
markets
Due to its near zero carbon emission
performance, Tesla Motors has an opportunity to
strengthen its financial performance through
incentives from governments. Free trade
agreements open opportunities for Tesla to
expand its operations internationally. Political
stability of major markets makes the remote or
macro-environment favourable to the company’s
market penetration strategies.
The exception is China, which plays by its own
rules to push local EV makers like BYD.
SOCIAL
+ Increasing popularity of low-carbon lifestyles
+ Increasing preference for renewable energy
+ Improving wealth distribution in developing
markets
These external factors improve market demand
for the company’s electric vehicles and related
products.
ECONOMIC
+ Decreasing battery costs
+ Decreasing renewable energy costs
- Threat of economic stability issues
Battery costs are still 1/5 of the total car cost.
The continued decrease of renewable energy
costs makes Tesla products more attractive
supplementing business improvement due to
increased popularity of renewable energy
solutions. However, economic stability issues
threaten the company’s financial performance,
especially in Europe and Asia
TECHNOLOGICAL DEVELOPMENT
+/- High rate of technological change
+ Increasing automation in business
+ Increasing popularity of online mobile
systems
The high rate of technological change presents an
opportunity for Tesla to enhance its product
technologies. Its position as an electricity, battery
and car producer give it a huge competitive
advantage. However, this external factor also
threatens the company due to the potential for
rapid obsolescence of technologies used in its
products. Thus Tesla will need to employ a
significant R&D budget.
ENVIRONMENTAL
+ Climate change
+ Expanding environmental programs
+ Rising standards for waste disposal
LEGAL
+/- Dealer sales regulation in the USA
+ Expanding international patent protection
+ Energy consumption regulations
Tesla “direct sales” are allowed in many countries,
but are not allowed in several US states, some of
which are currently suing Tesla. Tesla’s patent
release should boost other companies entering
the EV market. In addition, the company has the
opportunity to promote its electric vehicles,
based on energy consumption regulations that
customer organisations must follow.

30% growth p.a.
BNEF Forecast
60% growth p.a.
Current rate of adoption
45% growth
p.a.
18
Q&A
WHAT ABOUT THE OIL LOBBY’S STANCE
REGARDING EV MARKET ?
Transportation used 70% of US oil production, 65% of which is
used by cars. This means that 45.5% of US oil production is being
used for cars.
As can be seen from looking at carmaker announcements, after
years of denial regarding HEV and EV, they have agreed it is not
sustainable to delay investments in EV, unless they deliberately
wish to loose market share and money.
The “full electric” model has to be considered as the most probable
for the next decade.
By 2022, electric vehicles will cost the same as
their internal-combustion counterparts.
The oil markets are going through fundamental structural changes driven by a
technological revolution and geopolitical shifts and the business model that has
worked for the last quarter-century is broken.
[…]
The Chatham House Think Tank report offers two unappealing options for today’s oil
majors: “managing a gentle decline by downsizing or risking a rapid collapse by trying to
carry on business as usual.”
Of course, there is another option: the oil and gas companies could become energy
companies, focusing on new technologies, decentralized energy systems and
providing clean energy. Shell is gesturing in that direction by investing $1.7 billion in
clean-energy projects. Considering that is about 5 percent of the $30 billion or so the
company invests in oil and gas every year, it is probably too little and too late.
2016 2018e 2020e 2024e
1
3
4
5
2022e
6
Millions of
barrels of oil
per day
2
THE AMOUNT OF OIL DISPLACED BY ELECTRIC CARS
DEPENDS ON WHEN VEHICLE SALES TAKE OFF.
BELOW ARE 3 SCENARIOS FOR RISING EV SALES.
Forecasted
crash
“
“
www.technologyreview.com
The Bloomberg New Energy Finance (BNEF) forecast of 30% CAGR for the coming years
seems less aggressive than simply taking into account current EV adoption rate (60%). Using
this forecast the oil-crash benchmark of 2m barrels per day would be crossed in 2028.
With a continued EV adoption rate of 60%, electric
vehicles could displace oil demand of 2m barrels a
day as early as 2023. This would create an oil glut
equivalent to the trigger of the 2014 oil crisis.

Q&A
ASPECT CURRENT ICE BATTERY-ELECTRIC FUEL-CELL
Fuel type Gasoline Electricity Hydrogen
Vehicle models available1 287 13 3
Average fuel economy1 23.3 mpg 105.2 mpge 58.5 mpge
Fuel economy range1 12-50 mpg 84-119 mpge 50-67 mpge
Effective cost per mile $0.10 $0.04 $0.09
Well-to-wheels GHG emissions (g/mi)2 356-409 214 260-364
Well-to-wheels total petroleum usage (Btu/mi)2 3791-4359 54 27-67
Driving range (average)1 418 mi 110 mi 289 mi
Driving range (min-max)1 348-680 mi 62-257 mi 265-312 mi
Time to refuel ~5 min
20-30 min (DC level 2)
3.5-12 hr (AC Level 2)
5-30 min
Security: High voltage No Yes Yes
Security: High pressure No No Yes
Availability of qualiﬁed mechanics Yes Limited Limited
Availability of qualified emergency responders Yes Yes Limited
Vehicle maintenance issues3 -
Lower than
gasoline. Possible
battery replacement
required during
vehicle lifetime
Lower than
gasoline. High-
pressure tanks
may require
inspection and
maintenance.
1 Model year 2016 (EPA, 2015a)
2 GREET 2015 release, using default setting for model year 2015 passenger cars (ANL, 2015)
3 AFDC (2014)
RELEVANT ASPECTS OF VEHICLE PERFORMANCE FOR BATTERY-
ELECTRIC VEHICLES (BEV) AND HYDROGEN FUEL-CELL VEHICLES (FCV)
best worst
WHAT ABOUT HYDROGEN FUEL CELLS
COMPARED TO ELECTRIC BATTERIES ?
Hydrogen-fueled vehicles were a good alternative to
electric vehicles due to their ability to refuel more
quickly and overall better cell efficiency. Hydrogen
can be generated using oil and gas or, even better,
using wind power, solar power or any other source of
electricity that happens to be available (providing
ultimate flexibility).
But 3 factors will probably cause the hydrogen fuel
cell to loose the battle:
1. Hydrogen is not a source of energy; it is only a
carrier of energy. Delivery of hydrogen, whether by
truck or pipeline, requires energy costs that are
several times those for established energy carriers
like natural gas or gasoline. Even the most efficient
fuel cells cannot recover these losses.
2. Storage: Hydrogen’s low density and extremely
low boiling point increase the energy cost of
compression or liquefaction, investment costs of
storage and evaporation due to security wastage.
Energy input outweighs the energy delivered by a
factor of three to four.
3. Charging infrastructures: Most of the fuel-cell
infrastructure that exists is limited to the Los Angeles
and San Francisco Bay areas. Construction costs for
a hydrogen refuelling station are several times a
traditional gasoline station.

Q&A
DID TESLA REALLY HAVE TO BUILD AND FINANCE
ITS OWN SUPERCHARGER INFRASTRUCTURE?
Tesla is not just building and selling electric vehicles; the Tesla strategy
requires to provide consumers with the means to shift from ICE vehicles
to electric vehicles.
To achieve this major change in consumer behaviour, Elon Musk
anticipated that a mass-market shift to battery-powered cars faced 4
great obstacles:
limited battery range;
long battery charging time;
lack of a network of charging stations; and
battery pack lifetime and replacement cost.
Tesla was the first EV manufacturer to bring a tangible solution to the
market with a 200+ mile range battery and the first to build charging
clusters around major markets. Tesla then methodically extended the
network to make it possible to make a cross country trip. With a charging
time of 30 minutes and a range of 170 miles, Tesla had the world’s fastest
charging station.
Charger infrastructure is a crucial part of the user experience and Tesla’s
control over it gives a strong competitive advantage. This control means
that the network can be upgraded as battery capacity evolves and Tesla
can expand the network on its own terms.
Tesla cannot rely on third-party suppliers for the charger network since
the industry is mired in a standards battle. It pits two other systems
against Tesla’s: CHAdeMO, notably used by the Nissan Leaf, and SAE
CCS, which is used by BMW and Volkswagen.
Finally, it is no secret that the Phase 3 of Elon Musk’s “Master Plan” relies
upon its recent SolarCity acquisition. SolarCity will enable the use of PV
cells for individual solar roofs and significantly lower supercharger
dependence upon the grid.
SUPERCHARGING CORRIDORS
TESLA PLANS TO ENABLE IN 2016

Q&A
ARE ELECTRIC BATTERIES LIKE
TESLA’S 100% EMISSION FREE?
Assumptions that EVs are pollution and CO2 free are myths that
have to be debunked. It is a proven fact that Tesla cars generate
pollution during their 3 life stages: manufacturing, operation and
end-of-life.
The manufacture of an electric vehicle generates more carbon
emissions than building a conventional car due to the high
consumption of energy and material required for producing
batteries.
EVs generate pollution, whether powered from the electrical grid,
by electricity generated from natural gas or by solar panels that
need rare materials and energy for manufacture. Even when
electricity used for EV operation is generated from coal, all
studies come to the conclusion that over an entire lifetime,
an EV generates on average half of the pollution of an ICE
equivalent.
In their 2015 study “Cleaner Cars from Cradle to Grave”, the Union
of Concerned Scientists (UCS) carried out a rigorous assessment
of the carbon footprint of Tesla cars and other electric vehicles
versus internal combustion vehicles including hybrids. They found
that the manufacturing of a full-sized Tesla Model S rear-wheel
drive car with an 85 KWH battery was equivalent to a full-sized
ICE1 car except for the battery. This adds 15% (or one metric ton)
of CO2 emissions to the total manufacturing outlay. However,
Tesla’s battery recycling process with Umicore is able to save at
least 70% on CO2 emissions due to the recovery and refining of the
battery’s valuable metals.
Midsize
Gazoline
Car
100
300
400
500
600
Life Cycle of
Global Warming Emissions
(grams of CO2/mile)
200
Battery manufacturing
Vehicle manufacturing
Operation
Note: UCS assume that midsize vehicles are driven 135,000 miles over their lifetimes and full-size vehicles
179,000 miles. The difference in the two mileages derives from dissimilar uses of 84-mile-range and 256-
mile-range battery-electric cars. UCS further assumes that a consumer buying a BEV would drive it the
same total of miles as a corresponding gasoline vehicle. UCS use the US average electricity grid emissions
intensity during vehicle operation which are based on a sales-weighted average of where EVs are being
sold today.
LIFE CYCLE GLOBAL WARMING EMISSIONS FROM THE
MANUFACTURING AND OPERATION OF GASOLINE AND EVs
Midsize
84-mile
BEV
Full-size
Gazoline
Car
Full-size
265-mile
BEV
51%
DECREASE
53%
DECREASE

Q&A
DOES TESLA’S BUSINESS MODEL RELY ON
GOVERNMENT SUBSIDIES?
On 30 May 2015, Jerry Hirsch wrote an article in the Los Angeles Times
claiming that Elon Musk companies, “Tesla Motors Inc, SolarCity Corp
and Space Exploration Technologies Corp, known as SpaceX, together
have benefited from an estimated $4.9 billion in Government support.”
This was the peak of the ever-growing rumours about benefiting from
state and government subsidies for his businesses.
Musk immediately responded through an interview with the LA Times
journalist. Several articles revealed details of each subsidy Musk's
companies have received and their underlying obligations.
It has been revealed that:
Most of this subsidies are not direct cash: The figure compiled
by the LA Times included a variety of government incentives
including grants, tax breaks, factory construction, discounted
loans and environmental credits that Tesla can sell. It also includes
tax credits and rebates to buyers of solar panels and electric cars.
Some of the incentives do not come from tax payers: The
ZEV credit (zero emission vehicle) in California was created
decades ago before Tesla was launched and was paid by other
car manufacturers.
Most of the incentives were not Tesla creations. Thus it is
considered proper management to take advantage of them just
like every other competitor does. They include Department of
Energy loans, federal income tax credits and rebates for eligible
US buyers of electric vehicles, the California Self-Generation
Incentive Program, the California job training reimbursement and
Oregon tax credits and rebates.
Most of the government or state incentives come with onerous
reciprocal obligations:
Job creation (>10,000)
Spending milestones
Potential penalties in case of payment delay or failure
The Tesla subsidy affair had an unexpected associated effect: the
controversy revealed shocking figures about who was really taking
significant amounts from the system.
As stated in the Guardian for example: “Fossil fuel companies worldwide
are benefitting from global subsidies of $5.3tn a year, equivalent to $10m a
minute every day, according to a startling new estimate by the International
Monetary Fund. The IMF calls the revelation ‘shocking’ and says the figure
is an ‘extremely robust’ estimate of the true cost of fossil fuels. The $5.3tn
subsidy estimated for 2015 is greater than the total health spending of all
the world’s governments.”
The IMF figure represents 6.5% of global GDP. Just over half the figure is
the money governments are forced to spend to treat victims of air pollution
and income lost because of ill health and premature deaths. This is a stark
contrast to the $120bn subsidies available for renewable energy every
year.
However, the problem is complex as Tim Wortsall explained in a Forbes
article published on 14 November 2014: “It is largely poor and/or fossil fuel
producing countries subsidising fossil fuels. It is largely the rich world
subsidising renewables. Meaning that abolishing those subsidies for oil
and gas isn’t really something that’s in the control of us people in that rich
world.”
““This very important [International Monetary Fund] analysis shatters the myth
that fossil fuels are cheap by showing just how huge their real costs are. There
is no justiﬁcation for these enormous subsidies for fossil fuels, which
distort markets and damage economies, particularly in poorer countries.””
NICHOLAS STERN - CLIMATE ECONOMIST AT THE LONDON SCHOOL OF ECONOMICS

FIGURES: TESLA FINANCIAL STATEMENTS
TESLA MOTORS INC TESLA MOTORS INC
(TSLA)
IPO on 29 June 2010 on NASDAQ
Founded Sector
01/01/2003 Technology
Employees Fiscal Year Ends
31,557 31 December
Adress
3500 Deer Creek Road
Palo Alto, CA 94304-1317
United States of America
Website
www.teslamotors.com
2015 2014 2013
INCOME STATEMENT
Revenues 4046.02 3198.35 2013.49
Gross Proﬁt 923.5 881.67 456.26
Pretax Income (875.62) (284.63) (71.42)
Net Proﬁt/(Loss) (888.66) (294.04) (74.01)
EPS Basic Net (6.93) (2.36) (0.62)
EPS Diluted Net (6.93) (2.36) (0.62)
Total operating expense 4762.65 3385.04 2074.76
Operating income (716.62) (186.68) (61.28)
BALANCE SHEET
Total Current Assets 2791.56 3198.65 1265.93
Total Assets 8092.46 5849.25 2416.93
Total Liabilities 7003.51 4937.54 1749.81
Shareholders Equity 1088.94 911.71 667.12
CASH FLOW STATEMENT
Net Income (888.66) (294.04) (74.01)
Net Cash From Operating Activities (524.49) (57.33) 257.99
Net Cash From Investment Activities (1,673.55) (990.44) (249.41)
Net Cash From Financing Activities 1,523.52 2,143.13 635.42
Net Change In Cash And Cash Equivalents (708.8) 1,059.82 643.99
-200%
-100%
0%
100%
200%
-1000
0
1000
2000
3000
4000
2015201420132012
Net Sales Or Revenues
Net Income
-200%
-100%
0%
100%
200%
-800
0
800
1600
2400
3200
4000
2015201420132012
Net Sales Or Revenues
Operating income
Revenues
Operating income
Revenues
Net Profit/(Loss)
$
$
$m

FIGURES: TESLA SHAREHOLDERS, FUNDING ROUNDS, M&A DEALS
Top 10 institutional shareholders
DATE
AMOUNT
/ ROUND
LEAD
INVESTOR
NUMBER OF
INVESTORS
May, 2016 $1.46b / Post IPO Equity — 5
Oct, 2012 $10m / Grant California Energy Commission 1
Nov, 2010 $30m / Post IPO Equity Panasonic 1
May, 2010 $50m / Post IPO Equity Toyota 1
Sep, 2009 $82.5m / Series F Al Wahada Capital Investment 4
Jun, 2009 $465m / Debt Financing US Department of Energy 1
May, 2009 $50m / Series E Daimler 2
Nov, 2008 $40m / Debt Financing Elon Musk 5
May, 2008 $40.17m / Debt Financing Elon Musk 5
Feb, 2008 $40m / Series E Elon Musk 8
May, 2007 $45m / Series D
Elon Musk
Technology Venture Partners US
10
May, 2006 $40m / Series C
Elon Musk
VantagePoint Capital Partners
11
Feb, 2005 $13m / Series B
Elon Musk
Valor Equity Partners
3
Apr, 2004 $7.5m / Series A Elon Musk 2
Funding Rounds (14): $2.37b
DATE ACQUIRED CONSIDERATION
Jun 22, 2016 SolarCity (subject to completion) $2.6b in Tesla shares
May 8, 2015 Riviera Tool Unknown
Mergers & acquisitions (2)
SHAREHOLDERS Nº OF SHARES % HELD
FMR, LLC 20.74m 13.95%
Baillie Gifford & Company 13.07m 8.79%
Price T. Rowe Associates, Inc. 10.51m 7.07%
The Vanguard Group, Inc. 4.89m 3.29%
Bank of Montreal, Canada 4.87m 3.28%
Morgan Stanley Investment Management, Inc. 3.91m 2.63%
Jennison Associates LLC 3.09m 2.08%
BlackRock Institutional Trust Company 2.70m 1.81%
Capital World Investors 2.51m 1.69%
State Street Corp. 1.97m 1.32%
45,07%
Per cent of shares
held by top 10 holders
Data as of 30 June 2016
45.91% Please note that Elon Musk
holds approximately 22% of
Tesla’s share capital

FIGURES: TESLA STOCK
2016
100
150
200
300
250
50
2013 2014 2015
Apr Jul OctApr Jul OctApr Jul Oct Apr Jul
Tesla Motors Inc (TSLA) - NasdaqGS
Equity & Debt Situation
$2.52b
Equity
$677m
Debt
Key Statistics and Ratios
Trailing Stock Performance
TOTAL RETURN
(%)
31/08/2016
1-MONTH 3-MONTH 6-MONTH YTD 1-YEAR 3-YEAR 5-YEAR 10-YEAR 15-YEAR
TSLA -9.70 -5.03 10.46 -11.67 -14.88 7.85 53.67
Auto Man. 5.20 8.77 16.17 -2.21 3.03 0.93 10.06 3.23 5.38
S&P 500 0.14 4.10 13.60 7.82 12.55 12.30 14.69 7.51 6.55
79%
21%
Q2 (JUN '16) 2015
Net proﬁt margin -23.09% -21.96%
Operating margin -18.74% -17.71%
EBITDA margin - -7.27%
Return on average -11.17% -12.79%
— -
- 30%
0%
30%
60%
TSLA Auto Manufacturers S&P 500 TR USDCar Manufacturers
$ per share

FIGURES: SOLARCITY FINANCIAL STATEMENTS
SOLARCITY CORP INC SOLARCITY CORP INC
(SCTY)
IPO on 13 Dec 2012 on NASDAQ
Founded Sector
04/07/2006 Utilities
Employees Fiscal Year Ends
15,2731 31 December
Adress
3055 Clearview Way
San Mateo, 94402
United States of America
Website
http://www.solarcity.com
2015 2014 2013
INCOME STATEMENT
Revenues 399.61 255.03 163.83
Gross Proﬁt 118.82 78.59 39.36
Pretax Income (765.49) (401.96) (176.55)
Net Proft/(Loss) (58.33) (56.03) (55.79)
EPS Basic Net (0.6) (0.6) (0.7)
EPS Diluted Net (0.6) (0.6) (0.7)
Total operating expense 1047.4 590.62 313.2
Operating income (647.79) (335.59) (149.37)
BALANCE SHEET
Total Current Assets 902.13 1,002.39 787.66
Total Assets 7,287.11 4,586.21 2,809.53
Total Liabilities 5,873.49 3,430.62 2,005.11
Shareholders Equity 1,413.62 1,155.58 804.41
CASH FLOW STATEMENT
Net Income (768.82) (375.23) (151.75)
Net Cash From Operating Activities (789.88) (217.84) 174.51
Net Cash From Investment Activities (1,726.73) (1,344.81) (729.89)
Net Cash From Financing Activities 2,394.77 1,489.96 972.38
Net Change In Cash And Cash Equivalents (121.83) (72.69) 417
1 12/31/2015
-200%
-100%
0%
100%
200%
-400
-200
0
200
400
2015201420132012
Net Sales Or Revenues Net Income
Proﬁt margin
-200%
-100%
0%
100%
200%
-700
-350
0
350
700
2015201420132012
Net Sales Or Revenues Operating income
Operating margin
Revenues
Profit margin
Net Profit/(Loss)
Revenues
Profit margin
Operating Income
$
$
$m

FIGURES: SOLARCITY SHAREHOLDERS, FUNDING ROUNDS, M&A DEALS
DATE AMOUNT/ROUND LEAD INVESTOR TOTAL
Sep, 2016 $305m / Post IPO Equity — 0
Jul, 2016 $345m / Post IPO Debt — 0
Apr, 2016 $338m / Post IPO Equity
Bank of America Merrill Lynch
Credit Suisse 2
Nov, 2015 $113m / Post IPO Equity — 2
Jun, 2013 $201m / Post IPO Debt — 0
Jun, 2012 $250m / Private Equity U.S. Bancorp 1
Jun, 2012 $6.74m / 2nd Market Firsthand Technology Value Fund 1
Feb, 2012 $81m / Series G Silver Lake Kraftwerk
Valor Equity Partners 5
Dec, 2011 undisclosed /2nd Market 137 Ventures 1
Jul, 2011 $20m / Series F — 5
Jun, 2011 $280m / Undisclosed Google 1
Jul, 2010 $21.4m / Series E Mayﬁeld Fund 4
Jan, 2010 $60m / Private Equity Paciﬁc Gas and Electric (PG&E) 1
Oct, 2009 $23.9m / Series E Generation Investment Management 2
Oct, 2008 $29.9m / Series D First Solar 3
Aug, 2007 $21m / Series C — 0
Apr, 2007 $3m / Series B — 0
Sep, 2006 $1m / Venture Elon Musk 4
Jul, 2006 $2.3m / Series A — 0
Funding Rounds (19): $2.11b
DATE ACQUIRED AMOUNT
Aug 5, 2015 ILIOSSON $10m in cash
Jun 17, 2014 Silevo $200m (terms undisclosed)
Oct 9, 2013 Zep Solar $158m in shares
Aug 13, 2013 Paramount Solar $120m (terms undisclosed)
May 12, 2010 Building Solutions Unknown
Sep 28, 2006 Palo Alto Solar Unknown
Sep 28, 2006 Declination Solar Unknown
Mergers & acquisitions (7)
30,99%!
Per cent of shares
held by top 10 holders
30.20%
Data as of 30 June 2016
Top 10 institutional shareholders
SHAREHOLDERS Nº OF SHARES % HELD
FMR, LLC 11.65m 11.62%
Bank of Montreal, Canada 5.28m 5.26%
The Vanguard Group, Inc. 4.42m 4.40%
Public Sector Pension Investment Board 1.87m 1.87%
BlackRock Institutional Trust Company 1.48m 1.48%
Morgan Stanley Investment Management, Inc. 1.47m 1.47%
Deutsche Bank AG 1.41m 1.40%
Founders Fund IV Management, LLC 0.99m 0.98%
Bank of America Corp. 0.93m 0.93%
BlackRock Fund Advisors 0.78m 0.78%
Please note that Elon Musk
holds approximately 22% of
SolarCity’s share capital

FIGURES: SOLARCITY STOCK
2016
30
40
50
90
60
20
2013 2014 2015
Apr Jul OctApr Jul OctApr Jul Oct Apr Jul
SolarCity Corp Inc (SCTY) - NasdaqGS
Equity & Debt Situation
$868m
Equity
$3.09b
Debt
Trailing Stock Performance
TOTAL RETURN
(%)
31/08/2016
1-MONTH 3-MONTH 6-MONTH YTD 1-YEAR 3-YEAR 5-YEAR 10-YEAR 15-YEAR
SCTY -22.62 -7.73 12.10 -59.51 -57.21 -12.97 0 0 0
Utilities -5.65 -3.61 18.78 -1.25 -18.24 -9.42 -5.36 -2.35 3.32
S&P 500 0.14 4.10 13.60 7.82 12.55 12.30 14.69 7.51 6.55
22%
78%
Q2 (JUN '16) 2015
Net proﬁt margin -134.70% -192.39%
Operating margin -104.48% -162.10%
EBITDA margin - -120.40%
- -
- 60%
- 30%
0%
30%
60%
SCTY
Utilities - Independent Power Producers
70
80
$ per share
Key Statistics and Ratios

CONCLUSIONS
As Steve Jobs did with Apple, Elon Musk plans to disrupt not only one, but
several industrial fields, in less than a decade. It is not an incongruous and
haphazard combination but an assumed strategy: quick, deep and perfect
vertical integration and synergies are essential to successfully disrupt
firmly rooted industries like fossil energy, utilities and ICE transportation.
Four major factors might make Tesla’s objectives difficult to meet:
the energy and utilities industries require heavy and costly local
industrial implantation, especially for production and charging
infrastructures
electric vehicle performance depends on component-extensive
synergies: therefore chassis, electric powertrain, battery cells and pack
conception and production have to be fully integrated
renewable energy/electric transportation still needs strong and
expensive R&D to increase efficiency ratios to be able to compete with
fossil energy based technology
market momentum is close: Tesla must speed up production and
development significantly and expect global and fierce competition
Unlike Apple, even if the anticipated products generate huge revenues, Tesla will
need vast financing to reach its goals based on current strategy. This
could trigger the mass dilutions which go with such financing. Tesla will
also need to deliver on its numerous proclaimed commitments.

SOURCES (1/2)
PAGE 2
http://fortune.com/2016/06/22/elon-musk-merge-tesla-solarcity/
Icons: the nounproject - A.Zumahev, J.Fernandes, J.Wilson, J. Blake, misirlou, P. Rozenberg, E. Bolet, R.
Slater
PAGE 5
http://www.bloomberg.com/news/articles/2016-07-21/elon-musk-reveals-how-he-forecasts-tesla-s-
future
PAGE 6
http://www.bloomberg.com/features/2016-inside-tesla-gigafactory/
PAGE 7
https://en.wikipedia.org/wiki/NUMMI
http://www.bloomberg.com/news/articles/2015-08-10/here-s-how-elon-musk-takes-tesla-to-500-000-
cars-in-five-years
https://cleantechnica.com/2015/03/28/ev-demand-growing-global-market-hits-740000-units/
PAGE 9
http://www.statista.com/statistics/416750/number-of-electric-vehicle-charging-stations-outlets-united-
states/
http://www.wsj.com/amp/articles/why-electric-cars-will-be-here-sooner-than-you-think-1472402674
http://www.hybridcars.com/tesla-claims-to-have-worlds-fastest-charger-with-145-kilowatt-
supercharger-rollout/
http://www.greencarreports.com/news/1102607_how-much-does-electric-car-range-cost-per-mile
https://cleantechnica.com/2016/08/17/10-solar-energy-facts-charts-everyone-know/
PAGE 10
http://www.ev-volumes.com/country/total-world-plug-in-vehicle-volumes/
http://www.wsj.com/articles/daimler-sells-tesla-stake-for-780-million-1413926628
PAGE 11
http://www.ev-volumes.com/country/total-world-plug-in-vehicle-volumes/
http://evobsession.com/us-electric-car-sales-14-highlights-august/
http://www.caranddriver.com/
PAGE 12
http://www.visualcapitalist.com/the-lithium-ion-megafactories-are-coming-chart/
PAGE 13
Bloomberg New Energy Finance
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https://cleantechnica.com/2016/08/17/10-solar-energy-facts-charts-everyone-know/
PAGE 15
http://spherepress.com/tesla-motors-external-analysis-using-pestle-porters-5-analysis/
http://jtorres2015.wixsite.com/tesla-team5/porters-5-forces
https://prezi.com/odfko5i1kaqp/tesla-and-porters-five-forces/
http://studenttheses.cbs.dk/bitstream/handle/10417/4841/nicoline_eeg_praem.pdf?sequence=1
http://www.autonews.com/article/20140528/OEM05/305299995/bmw-projects-china-will-become-
no.-1-ev-market-by-2019
http://www.huffingtonpost.com/steven-cohen/the-growing-level-of-envi_b_6390054.html
http://www.forbes.com/sites/ywang/2016/06/08/chinas-electric-car-market-in-danger-of-backfiring-
after-attracting-ragtag-crew-of-players/#3b02cf98399c
http://www.sharpspixley.com/uploads/McKinseyPerspectiveonChinasautomarketin2020.pdf
http://www.mckinseychina.com/wp-content/uploads/2013/04/McKinsey-China-Future-of-Chinas-
Premium-Car-Market.pdf
http://www.pewresearch.org/key-data-points/environment-energy-2/
https://www.theguardian.com/environment/2016/feb/25/electric-cars-will-be-cheaper-than-
conventional-vehicles-by-2022
PAGE 16
http://studenttheses.cbs.dk/bitstream/handle/10417/4841/nicoline_eeg_praem.pdf?sequence=1
http://www.valueline.com/Stocks/Highlights/SWOT_Analysis__Tesla_Motors,_Inc_.aspx
http://www.valueline.com/Stocks/Highlights/SWOT_Analysis__Tesla_Motors,_Inc_.aspx#.V9mBx5OLSHp
http://synergyfiles.com/2016/03/tesla-batterypack-optimization/
http://knoema.fr/infographics/yxptpab/crude-oil-price-forecast-long-term-2016-to-2025-data-and-
charts
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https://www.thebalance.com/oil-price-forecast-3306219
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https://www.iea.org/publications/freepublications/publication/Global_EV_Outlook_2016.pdf
PAGE 17
http://panmore.com/tesla-motors-inc-pestel-pestle-analysis-recommendations
PAGE 18
http://www.bloomberg.com/features/2016-ev-oil-crisis/
https://www.technologyreview.com/s/601471/big-oil-companies-have-already-become-dinosaurs/

SOURCES (2/2)
PAGE 19
http://www.treehugger.com/cars/are-hydrogen-fuel-cell-cars-realistic-option-compared-battery-electric-
vehicles.html
http://uk.businessinsider.com/in-the-battle-between-electric-cars-and-fuel-cell-vehicles-we-currently-
have-a-clear-winner-2016-2?r=US&IR=T
http://phys.org/news/2006-12-hydrogen-economy-doesnt.html
PAGE 20
https://electrek.co/2016/07/20/tesla-supercharger-capacity-increase-145-kw/
http://www.theverge.com/2015/1/22/7871657/bmw-volkswagen-chargepoint-fast-charging-electric-
vehicles
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chademoccs-rollout-strategies/
https://chargedevs.com/newswire/elon-musk-tesla-is-in-talks-with-other-automakers-about-sharing-
the-supercharger-network/
PAGE 21
https://qph.is.quoracdn.net/main-qimg-3f0c0413ac0ed58f3c95352014ba35f6?convert_to_webp=true
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half-that-of-an-average-gas-car/
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report.pdf
https://www.tesla.com/fr_FR/blog/teslas-closed-loop-battery-recycling-program?redirect=no
“Cleaner Cars from Cradle to Grave” study published by the Union of Concerned Scientists (UCS)
PAGE 22
https://www.theguardian.com/environment/2015/may/18/fossil-fuel-companies-getting-10m-a-
minute-in-subsidies-says-imf
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times-claims-elon-musks-companies-are-receiving/
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http://www.forbes.com/sites/timworstall/2014/11/12/as-the-iea-says-the-550-billion-a-year-subsidy-to-
fossil-fuels-restricts-renewables/#751d1b8f7ab1
PAGES 23-28
Financial Times, Morningstar, Google finance, Yahoo finance, Amigobulls, Nasdaq, Crunchbase, 4-
traders.com, CNN and Reuters
Pictures used in the document: Tesla Motors Inc
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