Tesla Motors, Inc.: The First U.S. Car Company IPO Since 1956

Abstract

Tesla Motors, Inc. is in the business of developing, manufacturing, and selling technology for high-performance electric automotives and power train components. Hoping to develop a greater worldwide acceptance of electric vehicles as an alternative to the traditional internal combustion, petroleum based vehicles that dominate the market, Telsa is the first company that commercially produced a federally compliant electric vehicle with the design styling and performance characteristics of a high-end performance automobile. Telsa currently offers one vehicle, the Roadster, for sale, as well as supplying electric power train components to Daimler for use in its Smart EV automobile. Additionally, Tesla has a partnership with Toyota Motors to develop and supply an electric power train for Toyota’s Rav4 SUV.

This case was prepared for inclusion in Sage Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.

2024 Sage Publications, Inc. All Rights Reserved

Resources

Exhibit A

Figure

Exhibit B

Tesla Projected sales, in $ millions

Figure

Exhibit C

Automotive Sales

Automotive sales consisted of the following for the periods presented (in thousands):

2010

2009

2008

Vehicle, options and related sales

$75,459

$111,555

$14,742

Powertrain component and related sales

21,619

388

$97,078

$111,943

$14,742

Exhibit D

The following table includes selected quarterly results of operations data for the years ended December 31, 2010 and 2009 (in thousands, except per share data):

Three months ended

Mar 31

Jun 30

Sept 30

Dec 31

2010

Total Revenue

$20,812

$28,405

$31,241

$36,286

Gross profit

3,852

6,261

9,296

11,321

Net loss

(29,519)

(38,517)

(34,935)

(51,158)

Net loss per share, basic and diluted

(4.04)

(5.04)

(0.38)

(0.54)

2009

Total Revenue

$20,886

$26,945

$45,527

$18,585

Gross profit

(2,046)

2,101

7,699

1,781

Net loss

(16,016)

(10,867)

(4,615)

(24,242)

Net loss per share, basic and diluted

(2.31)

(1.56)

(0.66)

(3.43)

Exhibit E

The following table sets forth revenue by geographic area (in thousands):

Revenues

2010

2009

2008

North America

$41,866

$90,833

$14,742

Europe

70,542

21,110

Asia

4,336

$116,744

$111,943

$14,742

Exhibit F

All info as of 12/31/2010 (in thousands):

  • Sales: $97,078
  • Net Profit: ($154,328)
  • Operating Margin: (125.78%)
  • Receivables: $6,710
  • Cash Assets: $99,558
  • Inventory: $45,182
  • Total Debt: $71,828

This case was prepared for inclusion in Sage Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.

2024 Sage Publications, Inc. All Rights Reserved

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