The presentation was focused on the ongoing trade war between USA and China and how Tesla Motors implemented strategies to sustain the huge slap of tariff on their exports.

1. Presented By
Fariha Mobarak Nos
1420969030
North South Univers

2. Company overview
• Tesla, Inc. is an American automotive and energy company based in Palo Alto,
California.
• The company specializes in electric car manufacturing and, through its Solar City
subsidiary, solar panel manufacturing.
• The company was named in honor of Nikola Tesla (1856-1943)
• Tesla's logo is not just a fancy 'T', but that it actually represents the cross-section
of an electric motor first designed by the company's namesake, physicist and
inventor Nikola Tesla.
• 1332 stations equipped with more than 10,000 superchargers around the world.
The company offers a map so travelers can find where to recharge.
• Tesla Motors is the second oldest publicly listed American Automaker (behind
Ford).

3. Musk Controversy
• The tweet caused TSLA shares to tumble, and now
there’s a Department of Justice investigation and a
Securities and Exchange Commission probe into
the incident for possible criminal and civil legal
action.
• Elon Musk will step down as Tesla chairman to
settle fraud charges brought by the U.S. over
claims he made saying he'd take his company
private. As part of Musk's settlement, both
Tesla and Musk will each pay a $20 million
fine — and Musk can stay on as CEO, the
Security and Exchange Commission (SEC)
announced Saturday.(2 Oct 2018,Source
https://www.cnbc.com/2018/10/02/tesla-ceo-
elon-musk-resigns-as-chairman--heres-
what-that-really-means.html

4. Models Of Tesla

5. Model S
• Special Features:
• Auto Pilot
• Super Chargers
• Key looks like a mini car.
• Price Ranges: The Model S 100D, which has the longest range in the
lineup, starts at around $94,000 and The Model S 75D has a base
price of a little under $75,000.

6. • During the shareholders meeting in July 2014, Tesla CEO Elon
Musk revealed that the company had to drop its “Model E”
trademark after Ford threatened to sue over having a similar
naming scheme. At the time.
• The 3 lines style made it look closer to the original ‘Model E’ name
since Tesla is using it for the ‘E’ in its company logo and of course,
it completed its ‘SEX’ vehicle lineup. And eventually, ‘SEXY’ lineup
with the Model S, X and upcoming Model Y.
• Tesla applied for trademarks last year for the Model 3 with the 3
lines, but the company also already had trademarks for simply

7. Model X
• Target Market : towards mothers, families and active outdoor people.
• Price Range : varies between US$132,000 and US$144,000
• Unique Features: falcon wing doored luxury SUV
• The car has eliminated any worry for lost roof space by adding a
hitch on the back bumper, allowing it to carry equipment.
• the riding experience is said to be similar to that of an Enzo Ferrari.

8. ROADSTER
• Prices for the Roadster will start at $200,000, with a required deposit
of $50,000. A limited edition Founders Series of the car will cost
$250,000 and will have to be paid for up front and in full.

9. Electric cars
with
sustainable
energy
source
Sustainable
Innovation
Unique
Combination
Large
product
range
Wide Spread
super
charger
network
Focus Differentiation by Tesla

10. 10
The NEWS!!!

12. Country Profile : CHINA
• Full Name: The People's Republic of China
• Area: 9,600,000 sq km (3,706,580 sq mi)
• Capital: Beijing
• Population: 1.386 billion (2017) World Bank
• President: Xi Jinping
• Currency and Monetary Unit: Renminbi / Yuan
• According to the IMF, on a per capita income basis China ranked 71st by GDP
(nominal)and 78th by GDP (PPP) per capita in 2016.
• China is the world's largest manufacturing economy and exporter of goods.
• World's fastest-growing consumer market and second-largest importer of goods.
• In 2010, China became the world's largest automotive vehicle manufacturer as well as the
largest consumer ahead of the United States with an estimated 18 million new cars sold.

13. Why China?
• The Chinese car market is the biggest passenger car market in the world.
• The market share of China's electric vehicles is predicted to grow by 40 percent
• China has said it aims to see total annual sales of 2 million electric and gasoline-
electric hybrid vehicles by 2020 and for manufacturers to at least have one
electronic vehicle produced by 2019.
• The biggest growth is expected to come from new-energy vehicles (NEVs), the
hottest market segment now and in the future.
• NEVs include electric cars and plug-in hybrids, holding 60% and 40% of the NEV
market respectively.
• The Future is Electric! China is going green : Government encouraging EVs more.
• China is finally getting serious about adding more public chargers for electric cars.
• China luxury sales are expected to reach 3 million units annually by 2025, almost
twice as many as America.

15. The EV Market players in China
 BYD, Beijing Electric Vehicle Corp, ZhiDou, Shanghai Auto and Zotye are the
major producers.
 NIO, Byton, Leap, XPENG, Iconiq and WM Motorshave attracted billions of
dollars in investment in their quest to capture shares of China's enormous
premium vehicle market.
 China's Best-Selling EVs in 2017
#1 - Beijing Auto EC 180
#2 - Geely ZhiDou D2
#3 - BYD Song DM
#4 - Chery eQ
#5 - BYD E5
 Foreign brand :VW, Ford, Mercedes, BMW (Mini), GM, Nissan and PSA (each
with their respective Chinese partners)
 Tesla, Nissan Leaf and Denza are the only three non-Chinese EV brands for
sale today.
 Beating them all to the punch could be the Chinese-owned Volvo All-Electric
Polestar which is scheduled to go into production later this year.

16. 16
CAGE FRAMEWORK
C
Cultural
Chinese people are
fixated on economic
advancement and
business, while
Americans are more
focused on politics and
personal freedoms
A
Administrative/Poli
tical
China: Communist
state.
USA: Constitution-
based federal
republic; strong
democratic
tradition
E
Economical
The trade war is
hurting China's
economy while
the U.S. booms
G
Geographical
• United States is
around the same size
as China , USA being
slightly bigger..
• China : 23 provinces
• USA:50 states & 1
District

17. The nascent trade war between Beijing and Washington
could see Chinese customers facing a 50-percent tariff
on the company’s cars.
Taking ocean transport costs and import tariffs into
account, Tesla is now operating at a 55% to 60% cost
disadvantage compared to the exact same car locally
produced in China.
Tesla also mentioned that the trade tensions between
the U.S. and China have resulted in "an import tariff
rate of 40% on Tesla vehicles versus 15% for other
imported cars in China."

18. Tesla’s Plan
• In July, Tesla raised the price of its Model X and S cars by about 20%
in China because of tariffs.
• The company wants to capture the world’s largest market for
electric vehicles by pushing local production. “In order to
significantly increase the affordability of Model 3, we have decided
to accelerate our manufacturing timeline in China”-Tesla.
• Tesla plans to produce 250,000 Model 3s and Model Ys annually in
its factory in China
• Tesla paid $140 million for 213-acre land on is still in the early
stages of an environmental impact assessment
• Target market of giga factory : only to sell to domestic customer.

19. Model 3
• The Tesla Model 3 is the first vehicle built on Tesla's third-generation platform.
• Price Range starts from $35,000 in the US.
• Target Market : middle to upper middle class segment that largely depends on
vehicle reliability in order to commute.
• It aims to reduce the entry price for electric vehicles while not making any
compromise on range and performance.
• The Model 3 has a starting price of about half the base price of the flagship Tesla
Model S and has the size and stance of the Mazda 3.
• The Model 3 will be a sedan, although other versions may one day include a
Model Y compact SUV.

20. • Expensive cars in low volume.
• High price was part of branding and to raise
fund to accelerate the production process.
• 3rd generation car which will be low priced
but available in high volume.
• To capture more market and achieve
economies of scale.
• Tesla has always used the focus strategy of
differentiation from porter’s generic
strategies, targeting a narrow market with a
unique product.
BUSINESS LEVEL STRATEGY

21. Demand Condition:
The Chinese car market is the biggest passenger car market in
the world
Factor endow ment:
• Number of power charging stations are increasing
• Capital Resources: More and more investors are investing on EV
manufacturing companies
Related and supporting industries:
It’s not just Tesla. Chinese electric vehicle battery makers are frantically
building lithium-ion battery gigafactories—capable of producing massive
amounts of power
Firm strategy, structure and rivalry:
In order to compete, Telsa has to focus on producing better batteries than
the existing companies on China
Local companies are backed up by government subsidies
Po r t e r ’s D i a m o n d M o d e l

22. Government:
• Government supporting EV industry than the general one.
• However, the ongoing trade war with USA is making the foreign
companies suffer.
Chance:
• The country is moving towards more eco-friendly sustainable business
approach
• The country has the biggest consumer market
• People are willing to pay for luxury cars ; tech savvy.
.
Po r t e r ’s D i a m o n d M o d e l

24. Thank you !
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