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Tesla

Motors Investor Presentation

Tesla Motors Investor Presentation
January 2014
Jeff Evanson
VP Investor Relations

Safe Harbor Statement
Certain statements in this presentation, including statements relating to Model S demand,
market share and gross margin; future manufacturing expansion, future store, service center
and Supercharger network opening and expansion plans; and statements regarding future
vehicles such as Model X and Gen III are “forward-looking statements” that are subject to
risks and uncertainties. These forward-looking statements are based on management’s
current expectations, and as a result of certain risks and uncertainties, actual results may
differ materially from those projected.

The following important factors, without limitation, could cause actual results to differ
materially from those in the forward-looking statements: delays in the ramping of production
capacity and delivery of Model S, including the ability of suppliers to supply parts at desired
quality levels and quantities; market acceptance of electric vehicles in general and new Tesla
vehicle models, specifically Model S, Model X and Gen III; Tesla’s ability to control the costs
associated with our business; Tesla’s ability to establish, maintain and strengthen the Tesla
brand; Tesla’s ability to execute on its retail strategy and for new store, service center and
Supercharger openings; potential difficulties in finding suitable Tesla store, service center and
Supercharger sites as well as the risks and uncertainties identified under the section
captioned “Risk Factors” in our quarterly report on Form 10-Q filed with the SEC on
November 8, 2013. Except as required by law, Tesla disclaims any obligation to update
information contained in these forward-looking statements.

Introduction

“Our goal when we created Tesla a decade ago was the same as it
is today: to drive the world’s transition to electric mobility by bringing
a full range of increasingly affordable electric cars to market.”
-Elon Musk | CEO

Corporate Overview Founded: 2003
Employees: ≈6,000
Retail Locations: 100+
Tesla Electric Miles Driven: 190 million
Headquarters Tesla Factory Tesla Assembly Design / Advanced Eng.
Palo Alto, California Fremont, California Tilburg, Netherlands Hawthorne, California

Solid Foundation

For Future Success
Brand
Partnerships
IP Leadership
Financial
Management

Comprehensive Capabilities

Direct feedback loop accelerates development
Design Engineering Mfg Stores Service Charging
Value Chain Customers

Tesla Culture

Our Greatest Asset Move Fast
Do the Impossible
Constantly Innovate
Reason from “First Principles”
Think Like Owners
We are ALL IN

Roadmap

Culture Drives Success

Proven by Model S
1. Streamlined Development
• Developed in ≈2 years
• Cost to market ≈$650 million
2. Better vehicles
• “The best car we have ever tested”
Consumer Reports
3. Superior Economics
• Profitable on low volume
• 25%+ gross margin (LT target)
Market share gains are the evidence

Leading F-Segment Vehicles

US Units Sold YTD thru Q3’13
16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,000
-
Tesla Model S MB S-Class BMW 7-Series Lexus LS BMW 6-Series Audi A7 Porsche
Panamera

Invest to Grow

Vehicles, Production, Customer Support
Vehicles

Production

Customer Support

Strong Growth Potential

Tesla 2013 Market Share
2-3% of the U.S. premium auto market
(with minimal penetration)
≈ 1% of the global premium auto market
≈ 0.02% share of the global auto market
T

Expand Production

Supply Chain & Capacity
Suppliers
Production Capacity

Customer Support

Stores & Service
55 retail outlets in North America
24 in Europe
4 in Asia
More stores & service centers coming

Customer Support

Supercharging
Today 2015
Free long distance driving, forever

Vehicles

s
it
Un
Time

Tesla Product Strategy

Better Driving at a Lower Price
$$
$$$
s $$$$
it
Un 3rd Generation
nd
2 Generation
st
1 Generation
Time

0 - 60mph: 3.7 seconds • EPA Driving Range: 244 miles • Base Price: $109,000

Model S - Most Awarded Car of 2013

Your Only Car
Most Capable & Convenient
Over 80% of Tesla owners use Model S as their primary vehicle

Model X

A New Vehicle Category
Functionality, style & performance
Dual motor AWD
Starts production late 2014

Gen 3

Next Vehicle Platform Targets
D-segment sedan
Available in ≈3 years
Base price $30-35K
Tesla performance & range
Category-leading gross margin

Corporate Capabilities

Design
Inspired by the endurance athlete
Blend of aerodynamics and beautiful design
Incredible interior utility and cargo space
Details: Door Handles, Charge Port, Key, Panoramic Roof

Vehicle Engineering
Entirely in-house team
All aluminum chassis construction (Extrusions, stampings, and castings)
Lightweight, low center of gravity & high torsional rigidity
5-star NHTSA rating

Powertrain Engineering
Integration Value: A system that is greater than the sum of its parts
Small Cells Battery Inverter Motor Gear Box

Software Engineering
Advanced software
Core focus and Tesla DNA
- Battery Management
- Motor Control
- Diagnostics
- Touchscreen
- Traction and Stability Control
Customizable and upgradable


Powertrain Manufacturing
Highly scalable
Superior cost dynamics
Trade secret methodologies


Vehicle Manufacturing
Efficient
Multi-platform
Superior ECO throughput


Reinventing Sales

Distribution & Marketing Combined
Superior customer experience
Streamlined purchase process
Direct relationship
Capture retail mark-up
More efficient
Santa Monica Store

Reinventing Service

Best Service is No Service
Valet Loaner Service
No Scheduled Maintenance Ranger Remote Service

Questions?