- Tesla is an electric vehicle manufacturer that uses a direct sales model without third-party dealers, and offers services like remote vehicle monitoring and a supercharging station network. - In 2015, Tesla's best-selling luxury sedan, the Model S, significantly outsold competitors like the BMW 6-Series and Mercedes-Benz CLS Class in the US market. - However, Tesla vehicles are still mainly affordable only to high-income customers, and have a relatively low overall usage rate.

1. Business Case Analysis:
Tesla User Cars Market Proposal
ITM 395 Strategy Information Technology
Planning, Organization and Leadership: Capstone
Instructor: Mona Muggenthaler-Sabuco
Student: Jacky Cao

2. ITM 395 – Case Analysis Template
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SUMMARY
 Industry:
• A Electric Vehicle (EV) Manufacturers
 Main Business Model:
• Direct sales - without 3rd dealers
• Service Plus – Remote detection in anywhere anytime
• Supercharger network –Full charge your car in 30 minute at supercharge station.
 Best-Selling Luxury Sedan in US market in 2015 :
• Tesla, 25,202
• BMW 6-Series, 8,146
• Mercedes-Bens CLS Class, 5,162
• Etc.

3. ITM 395 – Case Analysis Template
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POTENTIAL BUSINESS ISSUES
 Although it was the Best-Selling Luxury Sedan in US, but:
• Customers Segment: High income people
• Market share is small
 Although it is a famous of Green Car around the world ,
but:
• Its usage rate is low, only high income people can afforded it

4. ITM 395 – Case Analysis Template
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ALTERNATIVES SOLUTIONS
 New production line: Lower EV’s price – Model X Ongoing
 EV’s battery life improvement – From 200 miles > More longer
 Increase used car market – Create Tesla used car platform

5. ITM 395 – Case Analysis Template
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TESLA USED CAR PLATFORM
Create a used car system: (Sell & Lease)
• Selling a used car:
More discount with used car
 Encourage new promotion for Tesla owner
• Leasing a used car:
 Low price - $ 300 - $ 600
 More miles – 60%
 Encourage new promotion for Tesla owner

6. ITM 395 – Case Analysis Template
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BENEFITS OF A USED CAR SYSTEM
Increase Tesla’s usage rate
Mine user’s data:
• More experiences and feedbacks and
information
• Collect real user’s requirements
• Expand green awareness

7. ITM 395 – Case Analysis Template
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CONCLUSION
 Collect feedbacks from our customers (New car discount)
 Analyze and design used car system
• System development
• BI development
 Market promotions
 Gain feedback and data from experiences, then BI
analysis - > business decision