Cristiano Carlutti Vice President EMEA Electric cars and sustainable Future Automotive News Europe Congress Bilbao, Spain 23 rd June 2010
Tesla Corporate Overview Uncompromised all-ev Highly disruptive technology with style 600+ employees Daimler, Toyota, Panasonic and TAG Heuer partnerships More than 1,200 cars delivered to customers More than 7 million collective kms driven by customers Sales in NA (mid 2008), EU (Sept 2009) and APAC (May 2010): 25+ countries Continuous improvement philosophy marries the best of Silicon Valley and the global auto industry! 2
Macro trends RISING COMMODITY PRICES INCREASING REGULATIONS CLIMATE CHANGE ALTERNATIVE FUEL VEHICLES FAILURE OF ETHANOL IMPROVING BATTERY TECHNOLOGY GEOPOLITICAL SECURITY CONCERNS Numerous big-picture issues are forcing the customer to think harder about the energy use 3
Tesla Business Strategy Product features: unique combination of Performance + Green: you don t need to compromise! Target: Roadster targets early adopters and thought leaders who set the pace more affordable products aimed at mainstream consumers Distribution: wholly-owned sales, service network consistent brand identity + control over first touch with customers + speed of action Customer experience: outstanding customer experience online and at premium showrooms in major metropolitan markets. Inspired by Apple, Starbucks and other world-class retailers open floor plan, lounge, free Wi-Fi, snack and beverage service Service: Tesla technicians provide mobile service house calls to customers homes or offices for maximum convenience Communication loop: tight communication loop from concept to engineering to assembly line to customer Tesla iterates rapidly, no focus groups, just first-hand information Hiring: recruitment process inspired by Google, hiring from many industries 4
Product Performance with a clean conscience Roadster and Roadster Sport Faster than other supercars but zero tailpipe emissions 0-96 kmh acceleration: 3,9 secs (3,7 secs R Sport) Range: 340 kms (EU certified) Launch date: 2008 (EU 2009) Model S Four door sport sedan 0-100 kph acceleration: <6 secs Range options: 250 km, 370 km and 480 km Great Handling + Comfort + Cargo volume Launch date: 2012 5
Tesla Stores EMEA Flagship stores Today: London, Munich, Monaco, Zurich Next in 2010: Copenhagen, Paris, Milan, Abu Dhabi Sales advocates: Today: Madrid, Milan and Amsterdam Next in 2010: Vienna, Oslo and Hamburg North America: 8 stores in the USA. Sales advocates in Toronto, Boston, Washington Asia Pacific: Sales advocates in Sydney, Tokyo, Hong Kong. Soon to open Flagship stores in Sydney, Tokyo, Hong Kong and Singapore 6
Pure EVs vs. Hybrids Type Powertrain Emissions Hybrid Internal combustion engine Electric motor + small battery Plug-in hybrid Electric motor and battery Internal combustion engine to extend range Tesla since its beginning has focused on pure EV technology Pure EV All-electric powertrain ZEV No Oil 7
Navigating out of a downturn Technology: technology leader Innovation: unique combination of Performance and Green Customer doesn t need to compromise Customer: listen to the customers in order to improve the Product the Customer Service the Processes the Distribution the Speed of action Customer: easy for the customer and accessible Product easy to use: plug it in like your iphone Service easy to benefit from: House calls for service, very limited maintenance Direct access to sales team by email, phone and in person Showrooms where customer can enjoy hospitality Customer: targeting the right profiles Recruitment: people from different industries, key factor in development of the company Partnerships: selling our patented components to other OEM getting their own EVs on the road faster Example: showing that consumers really do want cars that are both efficient AND fun! 8
Customers aiming to a sustainable future O. Poldermans, near Granada, Spain: he lives off the grid and charges exclusively with solar and small hydroelectricity projects on his property P. Harte, near Cork, Ireland He works in renewable energy and charges via wind turbines R. and T. Titus, London: they never pay the infamous congestion fees. They park and charge for free throughout town P. Vanzetto, Rossano Veneto, Italy... He simply loves to drive the back hills with the top down! 9
What s needed in the EV industry? Some open points: Is range a real issue? Will the technology become more affordable? Are the infrastructures (or lack of) the real obstacle? Do we have a lack of supply problem? or do we need a cultural shift? Most Current Yes, Investments Image it of will of demand drivers EV thanks is by still never public isto the drive not technology and one met private of more golf by than carts the offer or 50km of improvements neighborhood's EV products per day You can probably vehicles Some New In recharge a way products drivers it s already already need offered in big by more your On OEMs ranges the garage, affordable contrary will but at help they work EVin are developing because or have a public an minority embedded maintenance the parking market costs sport are further soul much lower than ICE 10
Media and Public opinion It looks like a turbo Porsche. I test drove it. I tell you, it is a fantastic car and it looks sexy. It looks great, this car, and you can drive 200 miles to 250 miles without charging it up. And then charging it up only takes three hours. So those are the kind of things that are available for people now, and I think that people should really be in charge of their own destiny and how much they want to pay for their fuel, not wait for the politicians. Arnold Schwarzenegger Climate Change Summit, July 2008 11
Thanks! 12