An overview of the business models Tesla employs to revolutionize the automotive industry and maximize profits.

1. Tesla:
Challenging dominant industry logic
Learn how to innovate
your business with
Business Model Patterns

2. “To accelerate the world’s transition
to sustainable transport.”
Mission Statement

3. The generic automotive manufacturing
business model is simple
WHO is the customer?
People and businesses with individual
transportation needs
HOW is value created?
•
Manufacture of complete transport solutions
through collaboration with various partners
•
Distribution of vehicles via third parties
WHAT is the solution?
Transportation from A-to-B with motorized
vehicles
WHY is it commercially viable?
Price per vehicle unit based on custom-
equipped add-on features

4. Tesla goes further ...

5. WHO is the customer?

Ecologically aware car drivers

Homeowners, businesses and utilities

Stakeholders interested in increasing their use
of renewable energy
HOW is the value created?
•
Own branch stores
•
Network of well-placed charging stations
•
Close customer relationship to meet specific
needs
WHAT is the solution?
•
Clean energy ecosystems
•
Sustainable batteries for homes and
businesses as well as self-driven electric cars
WHY is it commercially viable?
•
Sales of sustainable energy units
•
When fully operational by 2020, Tesla’s
Gigafactory will decrease battery cost by 30%
Tesla’s business model is more complex

6. Strategy
Build expensive sports car
Reinvest earnings into construction of affordable car
Reinvest in construction of more affordable car
Simultaneously provide zero-emission charging options

7. How did Tesla innovate?

8. Aikido
Electric vehicles were considered
inferior until Tesla built powerful,
desirable cars. In so doing, Tesla
became a successful leader in green
tech.

9. Direct Selling
Tesla operates about 260 flagship
stores worldwide. The goal is to expand
retail operations with a company target
production volume of 500,000 vehicles
by 2018.

10. Integrator
Around 800 supercharger stations with
more than 5,100 superchargers top up
Tesla vehicles in minutes. The firm’s
Gigafactory is powered by 100%
renewable energy.

11. Solution Provider
The company’s first big push into energy
was marked by the introduction of the
Powerwall and the Powerbank. Tesla
further acquired SolarCity to provide
efficient solar roofs.

12. Open Source
Tesla is fully committed to its vision. In
2014, Tesla made its electric vehicle
patents open source – an
unprecedented move for a for-profit
company.

13. More information:
www.bmilab.com