Tesla Flashcards

1
Q

]\main challenge

A

focus remains primarily on EV growth and profitability
broad sustainability goals seen as high risk and distracting

vertically integrated model poses challenges in scaling up production
need to constantly innovate
competitive pressure in the EV market and production bottleneck

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2
Q

economic

A

rising gas prices and inflation make EV more appealing
tax credits and other financial incentives support EV
inflation and high interest rates
historic cash crunch of 2007 that increased financial vulnerability and the 2008 financial crisis
high ev costs limit accessibility

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3
Q

political

A

ice phase out mandates
supportive global regulations for sustainability and EV transition
concerns about raw material sourcing
ice vehicle bands by 2035 in Europe

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4
Q

sociocultural

A

rising consumer demand for environmental respomsbiloty
shifts reinforce EV adoption and regulatory support
growing urban populations and several public transports may affect
rising concerns over RM sourcing for batteries

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5
Q

technological

A

leading in ev battery tech and FSD capaolties
innovating battery tech
over the air updates and FSD efforts
autonomous driving

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6
Q

global

A

USA; industry is growing steadily, driven by demand and favourable prices
europe: Volkswagen leads in total EV sales, signalling tightened competition
‘china: teslas 40% production cost reduction through fully owned subsidiaries pressures competitors to lower costs

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7
Q

EV industry ; industry size

A

based on 2022
US; 10% of new care slaes
china: 20% are ev
europe: 12%–> tesla is the market leader
Tesla has a 65% market share
china is the largest car market and hard to drive with ice vehicles

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8
Q

EV industry: growth

A

us ev sales grew 5 times from 2019-2022
Evs are growing ion Europe from 12% from 2019-2022
there is growth

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9
Q

ev industry trends

A

gvt support
sustainability trends
growing accessibility of EVS
more competition

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10
Q

porter analysis

A

new entrants: high entry barriers lke capital and innovation, teslas scale, infratrsutcre and brand loyalty deter new entrants
rivalry: intensyfing from ford and volkwasgon, Tesla also has early mover advantage and brand loyalty , high exit barriers
buyers: increased ev options enhance buyer power, teslas brand loyalty tech edge and swtchig costs reduce it
subs: ICE and HYBRID alternatives threat decreases due to growing regulatory pressure
suppliers: teslas vertical integration reduces dependency, reliance oon scarce raw materials gives supplies power

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11
Q

opportunties

A

rapodulygrowing EV market
advancements in battery tech
renewable energy and product opportunity
solar city–> expanding into residential and commercial clean energy
launch of affordable ev
china is the largest car market globally
ice vehicles –> more affordable cars

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12
Q

threats

A

compititon, dependency on raw materials, regulatory vulnerability
economic risks from inflation and high interest rates
having to follow Californias emission policies

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13
Q

strengths

A

innovate leadership and tech –> self driving, manufacturing, battery, the unboxing production process

vertical integration and manufacturing capabilities
- does in house so reduces costs, faster to innovate and in control of tech
- build own factories, produce own semiconductors, control and monitoring over components
- follow up services are cowardly integrated –> offer repairs
- vehicle manufacturing –> high volume
- also used for the cybertruck by designing the controllers

economies of scale and synergy
- they have large factories
- high volume global production (global. networks of giga factories)
- vehicles and energy solutions–> supercharger network, energy, comprehensive solutions

strong brand and market positio
- brand recognized
- dominant market position
- global presence
- consumer loyalty
0 customers are awaiting the new cybertrcik and put down their name on a waiting list

  • clear defined plans
  • multiple touch points
  • covid
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14
Q

additional strengths

A

clean tech energy company
software enhancements
data collection
disctinctibe vehicles
streamlined customization and production

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15
Q

weaknesses

A
  1. production and operational challemnges
    - scaling issues (production hell), couldn’t meet the high demand , having issues with the model 3
    - cost and complexity with being vertical integrated
    - quality control–> related below average and hard to balance grwth with customer staisfcati
  2. market and financial risks
    - product portfolio concentration –> model 3/y is 96% of sales
    l- imited offering for lower income consumers
  3. leadership and strategic risks
    - dependency on Elon musk
    - issues with leadershop
    - neg attention like from the SEC lawsuit with twitter
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16
Q

supply chain management

A

joint venture –> leads to further innovation with battery, cost and space efficient its with Panasonic
monitoring suppliers inventory levels–> can anticipate shortages and crisis which helped them during covid
insourcing critical compiennts–> reduces reliance
closed loop replying
- reduces waste
- costs reduced

they dont outsource their parts

COST EFFICIENT AND STABLE PRODUCTION

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17
Q

operations

A

1/ vertical intergation–> manufacturing, battery production and software development
2. giga factory–> allows total control over construction and design, global network, integrated production , large scale ,manufacturing
- master plans

ECONOMIES OF SCALE AND CPNTROL

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18
Q

distribution

A
  1. foward integrated distribution channel 9direct to consumer sales model online)
  2. limited customization options allows for mass production ***

global network of gigafactories to ensure efficient delivery

STRONG BRAND CONSUMER RELATIONSHIPS

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19
Q

marketing and sales

A
  1. minimal marketing
    - brand rep
    - high profile product unveilings
    - streamlined customization
  2. cross selling
    - energy generation, store and trasnport
    - ecosystem

direct sales –> fowardly integrated using a direct to consumer sales so can control Custer experience and collect data , mobile service , insurance
- can order vehicles from the website and only provides minimal customization

control the customer experience, collect data

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20
Q

follow up services

A
  • poweerback /pwoerll tech
  • supercharging stations
  • OTA updates
  • mobi;e service
  • insurance
  • direct to consumer model –> can monitor consumers and respond to changes

IMPROVED AND TAILORED CUSTOMER EXPERIENCE

ota, mobile service, insurance

21
Q

financen

A

strategic investments made over time to improve ca[pacity
pure order model act as interest free loans
strong market valuation
Tesla is pibloicy owned as it has an IPO
musk made massive investments
sales 81 billion
CONSTANT INNOVATION AND FLEXIXBLE SUPPLY CHAIN

22
Q

R AND D

A

TESLA IS COMMITED TO sustainability (power wall)
reduce manuacterimg costs (next generation platform, 468- battery cell)
creates different products like new cars, self driving

23
Q

information tech management

A

data driven iterations –> can monitor production and sales, streamlining deicison making
In house software and IT
OTA system allows a seamless customer experience
- super large touch screens, vehicle control software, autopilot

DIFFERENTIATON AND EFFICIENT MANUFACTERING

24
Q

Human Resources management

A

innovate and strategic CEO
strategic employee distribution (129000 employees with 65000 in manufacturing )
talented Wirkforc, innvoation
teslas consyrctuon team works fast and does the best practices

25
Q

core competencies

A
  1. vertical integration and control over value chain
  2. in house r and d
  3. follow up services –>
26
Q
  1. vertical integration and control over value chain (core comoeneticties )
A
  1. vertical integration of production
    - control over entire production costs
    - reduces costs, faster innovation
    - batteries are vertically integrated with ten help of Panasonic at the giga factory
    - bertially integrated for vehicle making
  2. global manufacturing
    - economies of scale
    - reduced shipping cost
  3. advanced supply chain management
    - strategic partnership with Panasonic
    - insource critical components
  4. follow up servioces
    - forward integration of sales and services
    0 super chargers, services and insurance
27
Q

in house r and d (core comp)

A
  1. fast innovation
    - culture of development and risk taking
    - adapt and stay ahead
  2. battery tech
    - in house battery r and d (4680 battery cell)
  3. in house software r and d
    - autonomous driivng
    - OTA sotfware enhancements
  4. leadership and strategy
    - vision and innovation
28
Q

competitive advnaage

A
  1. difereination focused avdantave
    - premium prices
    - innovative
    - vertical integration
    - brand image
  2. core differeintaors
    - r and d
    - follow ip
    - brand [ower
    - vertical integration
  3. sustaimable compeitive position
    - differienaton
    - solid leader position
    - rivals struggle to replicate
29
Q

business level strategy

A

differeinaton
- sets itself apart In both the automative and clean energy markets by:
- innovate
- unique Tesla features
- strong brand roegnition
- first mover avdnatges
- differeisifed in different markets

30
Q

some elements of focused cost leadership

A

focus is on making products more affordable for their high class
not cheap but less expensive for their wealthy customer
consistent scaling

31
Q

corporate level strategy

A

horizontal: automative business brings in 77 bullion (95%)
energy generation and storage business brings in 4 billion
- growth with both

has two business units
1) automative (77 bilion)
2) energy generation and storage (4 billion)
growth
- are also vertically integrated so can reduce costs, improve quality and increase speed of innobatopm
- also forward vertically integrated through their sales model so can control the customer experience

  • supercharger network–> vertically integrated bc they design it
  • insurance–> bc all the vehicles are connected, can use this data (synergy)
  • mobile service–> people will help with your car, forward vertical integration
32
Q

acqusition and joint venture

A

acquired Tesla motors , solar city
joint venture with Panasonic

33
Q

synergies

A

uses similiar lithium ion batteries for both EV and energy storage products (economies of scope)
the powerwall stores energy captured on the roof for later use –> consumers then use the powerwall and its creates and ecosystem
- trying to create an ecosystem with its insurance and mobile service and supercharger network

achieve multipoint competition through horizontal diversification

achieves synergies between its 2 core businesses

34
Q

acquisitions

A

purchased twitter and then took over the company: absorption
solar city: Tesla could morph from an Ev company into an integrated clean tech company

35
Q

teslas master plan 1

A

build a sports car, use that m0ney to build an affordable car and then build an even more affordable one, also create a zero emission electric power

model s came from the roadster, then introduced the model 3 then model y

to achieve the last step, acquired solar city

36
Q

model s

A

four door family sedan
more of a market appeal
named the motor trend car of the year

37
Q

what did model 3 and help- y Tesla do

A

break into the mass market

38
Q

teslas master plan 2

A

create solar roofs, expand ev product lines to address all segments, develop a self driving capability
, enable your var to make money for you when you arent using it

39
Q

multipoint competition

A

compete with uber by turning the car into an income generating asset

40
Q

master plan 3

A

wanted to eliminate fossil fuels without sacrificing economic growth , a long term plan
1. repower thee xisiitng grid with renewable energy
2. switch to ev
3. switch to heat pumps
4/ electrifying high temperature heat delivery
5. feeling shops and iarplimes with sustainable energy

41
Q

alliances

A

strategic alliance with Panasonic which allowed tesla to secure a consistent supply of high quality batteries, reduce costs and collaborate on battery tech avdnacemmts with the mdustry leader

42
Q

pros of vertical integration

A

can ensure quality, make decisions fast, maintain a lean and efficient production system

43
Q

horizontal

A

automative and energy business
but also have other services and products like the supercharger network (can charge the Tesla), mobile service (trained technicians perform maintenance at the customers proffered location ), insurance
highest possible volume with a small number of vehicles ,
5 vehicles on three dif platforms –> share an automative platform so synergies and economies of scope which reduces costs, share components, parts and tech

44
Q

competition

A

rivian –> issues with scaling up production
lucid group –> luxury ev , has issues with scaling up production
BYD company–> china , produces batteries

gm, ford motor, stellantis –> introducing evs

45
Q

physical resources

A

have the giga factories that are also vertically integrated

46
Q

decentralized energy

A

consumers arent dependent on a company
happened bc they offered the powerwall
consumers can store their own energy
cna create an ecosystem with their solar panels

47
Q

teslas value chain

A

combines upstream r and d, battery and electric vehicle manufcterng, downstream battery software, chop and FSD with a dense network of suoerchargnf stations

48
Q

Dunstable physicalainable

A

closed loop system, for batteries
will help reduce waste and further lower production costs