Chris Jenks,
[email protected] INITIAL REPORT Tesla Stands Alone in Luxury EV Niche Companies: BIT:F/FIATY, ETR:BMW, ETR:NSU, ETR:PAH3/POAHY, F, GM, TSLA, TYO:7201/NSANY, TYO:7203/TM, TYO:7211/MMTOF October 31, 2013 Research Question: Will high-end electric or hybrid vehicles from BMW, Audi and Porsche pop Tesla’s bubble? Summary of Findings Silo Summaries Tesla Motors Inc.’s (TSLA) Model S still has no direct competition; it 1) TESLA DEALERSHIPS stands alone in its class of luxury electric vehicles (EVs). These seven sources reported no impediments in meeting or exceeding current sales goals and no direct The 15 sources who discussed Tesla’s sales said the company has EV competition for Tesla’s Model S. All have taken part met or exceeded its goals, and not one of our 28 sources criticized in the Model S buyback program, often describing it as Tesla’s current performance in sales and order fulfillment. a lease program sweetened with the tax incentives of ownership but not a significant sales driver. The video The infamous video of a Model S catching fire has had no lasting of a Model S catching on fire has not been a hindrance; repercussions on Tesla. Sources said, if anything, the incident has if anything, the incident has driven home Tesla’s high reinforced Tesla’s claims of its strong safety features. safety standards. Although not a sales driver, Tesla’s three-year buyback program 2) TESLA SUPPLY CHAIN does boost consumer confidence and helps to close deals. A few These four sources were positive on Tesla, and three sources compared the program to a lease but sweetened with tax reported solid volume growth year to year in their Tesla incentives that come with ownership.