1. Tesla looks to
South Korea
November3rd,2016

2. Meet Our Team
Elise Cather, Asia
Specialist
Emma Junk, Tesla
Team Expert
Christina Clewlow,
Marketing Expert
Myriam El Mouniri,
Financial Expert

3. Tesla Motors
Mission: Help accelerate the world’s transition to sustainable transport
Limited Models: Model S, Model 3, Model X
Renewable Energy Storage: PowerWall, PowerPack
Tesla Factory in Fremont, California expanded - 100,000 cars per year
Tesla Gigafactory in Sparks, Nevada - world’s largest manufacturer of lithium ion
batteries

4. Tesla Car Models

5. Saving the World One Car at a Time
- Social Responsibility
- Fulfilling our mission
- Pollution in Asia
- Tax Incentives - PowerWall

6. International Presence
- Australia, China, Hong Kong, Japan, Macau, Andorra, United Kingdom, Switzerland, Sweden, Spain,
Slovenia, Serbia, Norway, Luxembourg, The Netherlands, Austria, Belgium, Croatia, Denmark, Finland,
France, Germany, Italy, Liechtenstein, Canada, Mexico, Slovakia, Poland, Czech Republic, and Taiwan.
- These countries currently hold one or more of Tesla’s facilities including a variety of Tesla stores and
galleries, Service Centers, Superchargers, and destination charging.

7. Tesla’s International Issues
Entering the Chinese market: Miscommunication between managers and customers
- Not enough research about consumer’s needs: space availability problem
- Very difficult to install private charging infrastructure: Not enough garages
- Why should we not give up the chinese market? Part of best emerging markets in the
world!

8. Production Capacities
Recent Expansion
● New factory will expand production from 50 000 vehicles to 500 000.
● Update on Tesla’s partnership with SolarCity:
Financing - Model 3 (large quantities)
● Raise more capital to finance Tesla’s Model 3, Sedan(marketed at $ 35,000).
● How: Potential equity and debt offerings by selling short term bonds.

9. Tesla’s Finances Continued.

10. Tesla’s Current Marketing

11. Marketing - United States
Product: Models, Energy Services
Place: Sold only online, Stores are for display
Promotion: Minimal advertising
Price: Set price, High

12. Tesla is positioned as a
high end green electric
car company positioned
in a luxury market with
a unique customer
experience

14. Understanding the Foreign Market

15. Korea’s Market
Demand
Population 50.6 million
Median age 41 years
82% are urban residents
Life expectancy is 82 years
Increasing market growth
Nominal GDP $1.38 Trillion
GDP per capita $36,600 (2015)
GDP consumption 38% industry
Old Age Dependency Ratio 18%
CIA World Fact Book

17. Market Comparison
United States
50.9% Dependency Ratio
#8 on the Ease of doing
business scale
Japan
64.5% Dependency Ratio
#24 on the Ease of doing
business scale
Korea
37.2% Dependency Ratio
#5 on the Ease of doing
business scale
Economic growth is above
Japan’s and the United
State’s

19. South Korea is ranked #1 in the
World for access to electricity

20. Why South Korea
should be Next?
Japan and Korea are similar
cultures
Japan has 28% of the current
income for Tesla
Economics and Demographics
seem more promising than Japan
A “greener” economy

21. Competitive Analysis in South Korea
Hyundai
4th largest automaker in
world market
2nd largest Asian Market
Plug in Hybrids
Kia
Soul EV
- Rechargeable batteries
- 34% owned by Hyundai
General Motors
Bolt EV electric car (2017)
Existing market presence
- Manufacturing facilities
- Media
- Brand awareness

22. Contd. Competition
● Nissan Motors
- Leaf EV 2017
- “Best Competition for GM’s Bolt
And Teslas Model 3 in Korea”
Scientific American
● BMW
- I3 “Luxury Electric Sports Car”
- Expected Korean Market 2017

23. The 3 Largest Challenges facing Tesla’s Entry in S. Korea
The Korean Brand Loyalty
85% of cars driven are
korean brand
Not many outside brands
“excel”
Lack of Supercharging Stations
China’s Similar Problems
Hard to implement a lot
at one time
Our Competitors’ Cars
Hyundai, Kia, and GM
have electric cars
coming out
OLEV

24. South Korea’s Business Environment

25. Methods of Entry
Joint Venture
Korean Government
- OLEV
- Market presence
- Charging stations
Wholly Owned Subsidiary
Japanese model
- Exclusively model 3
- Korean team
Wait for Entry
R&D
- China
- New technology
- Customer needs

26. Our Recommendation

27. Wholly Owned
SubsidiaryJapanese model
Exclusively model 3
Korean team

28. Marketing Strategy in South Korea
Product
Model 3
Model X
Price
Set Price - Model 3: $35,000
Pre-Order Fee: $1,000
Place
Seoul
Destination Stations
Promotion
Display Stores
Green Initiative

29. Expansion
Model 3 - Affordable, Higher Demand
Model X - Condensed parking
South Korea
- Maintain demand for luxury models
Social Responsibility - Corporate Mission

31. Works Cited
"CIA: The World Factbook." The Central Intelligence Agency. N.p., n.d. Web. 31 Oct. 2016.
Ahn, Sung-mi. "Chevy Bolt EV to Debut in Korea." The Korean Herald. The Herald Business, 26 Oct. 2016. Web. 31 Oct. 2016.
Ahn, Sung-mi. "South Korea Clears Way for Tesla's Entry." The Korean Herald. The Herald Business, 1 Sept. 016. Web. 31 Oct. 2016.
"America's Global Image." Pew Research Center. Pew Research Center, 23 June 2015. Web. 31 Oct. 2016.
Hyundai Motor Group. N.p., n.d. Web. 31 Oct. 2016.
Ruch, William V. "South Korea." International Handbook of Corporate Communication. Jefferson: McFarland &, 1989. 392-97. Print.
By Phalguni Soni - Disclosure | Jan 27, 2016 3:42 Pm EDT. "What Are Lowe's Strengths and Weaknesses?" - Market Realist. N.p., n.d. Web.
19 Oct. 2016.
South Korea: A Nation to Watch. The History Channel, 2011. Youtube. Korean Pop. Web. 20 Oct. 2016.
Korosec, Kirsten. "Tesla’s China Problem." Fortune Tesla’s China Problem Comments. Fortune, 09 Mar. 2015. Web. 19 Oct. 2016.
"World Ranking of Manufacturers." OICA. The International Organization of Motor Vehicle Manufacturers, 2015. Web. 31 Oct. 2016.
Cho, Chung-un. "Tesla Begins Pre-orders in Korea." The Korean Herald. The Herald Business, 21 July 2016. Web. 31 Oct. 2016.
http://www.koreaherald.com/view.php?ud=20161026000601
http://www.forbes.com/sites/greatspeculations/2016/05/20/heres-how-tesla-plans-to-meet-its-model-3-production-
demand/#3ce6615a5f0b