The Competitive and Strategic Position of Tesla Motors - Essay Example

Strategic Perspectives Executive Summary The discussion highlights the competitive and strategic position of Tesla Motors Inc. based on the trends ofits growths. Apart from this, this discussion also provides strategies that will significantly assist the company to strengthen its position in the future global market. Furthermore, the micro and macro environment along with the internal forces of the Tesla has been justified, based on the assessment of current performance of company in the marketplace. In this context, the discussion highlighted that the company remains conscious regarding the environmental factor but social changes considerably led the organization to change its strategies based on the changing trend. Moreover, micro environmental analysis signifies that in the current scenario there is considerable lower level of threat of substitute for Tesla. Whereas, the application of fund towards the CSR activities, reputation management through high level of innovation, and conserving towards the ethical issues helps Tesla to overcome from the financial crisis situation. Nevertheless, the report identifies that diversifying the business activities in other segment; divestment or reengineering strategies in the loss making units, and enhancing the specification of vehicles based on customer perception will assist the company to earn competitive advantage in future. Table of Contents Executive Summary 2 1. Introduction 6 2. Analysis of the External Environment 6 2.1. Macro Environment Analysis: PESTEL 6 2.1.1. Political Analysis 6 2.1.2. Economic Analysis 7 2.1.3. Social Analysis 7 2.1.4. Technological Analysis 7 2.1.5. Environmental Analysis 7 2.1.6. Legal Analysis 8 2.2. Micro Environment Analysis: Porter’s Five Forces Model 8 2.2.1. Threat from New Entrance 8 2.2.2. Bargaining Power of Buyer 8 2.2.3. Threats of Substitutes 9 2.2.4. Bargaining Power of Supplier 9 2.2.5. Intensity of Competitor Rivalry 9 3. Analysis of the Internal Environment 9 3.1. Resource Analysis of the Company 10 3.1.1. Financial Analysis 10 3.1.2. Physical and Technological Aspects 10 3.1.3. Human Resources 10 3.1.4. Innovation and Creativity 11 3.1.5. Organizational Capabilities 11 3.2. Value Chain Analysis 11 3.2.1. Primary Activities 11 3.2.2. Supporting Activities 12 4. Analysis of PR Crises 13 4.1. Reputation Management 13 4.2. CSR 14 4.3. Ethics Responsibility 14 5. Strategic Analysis 14 5.1. Business Level Strategy 14 5.2. Corporate Strategy 15 5.3. Strategies Suggested for future/Evaluation 15 5.4. Suggestions and Recommendation 17 6. Conclusion 18 7. References 19 8. Appendix 25 8.1. Total Revenue of Tesla from 2011 to 2014 25 8.2. Gross Profit of Tesla from 2011 to 2014 25 8.3. Tesla Model S 26 8.4. Tesla Model X 26 8.5. Tesla Superchargers 27 1. Introduction The prior aim of the report is to evaluate the provided case scenario of Tesla Motors in order to present the strategic position in the global environment. Additionally, in the current global competitive environment, the phenomenon of globalisation has significantly influenced various global business organisations and led them to undertake their business operation further than their domestic territories. Correspondingly, the international business accordingly response to the changing scenario through taking diversified strategic choices and decision making in order to maintain its competitive advantage in the global environment (Hill, 2006). Tesla Motors founded in the year 2003 named after Nikola Tesla one of the inventor of electric AC induction motor. Since, its formation company has attained unprecedented growth and expansion in their competitive position. Besides, company engage itself in designs, production, and distribution of electric cars and its components. Furthermore, during the year 2014, company earned US$ 3.198 billion revenue (1Tesla Motors, Inc., 2014). Correspondingly, the aim of the report is to evaluate and analyse the strategic prospective of Tesla Motors in the context of international environment. Additionally, this assessment has been conducted through the Senior Analyst prospect in order to review the strategic aspects of the company to the Chief Executive Officer (CEO) in order to comprehend the views through understanding the important contributing factors in formulation of the key strategies in the global market. Apparently, the in-depth internal as well as external analysis along with assessing the current strategies of Tesla Motors has been conducted. Nevertheless, based on the result of the assessment appropriate recommended strategies will be developed so that it can significantly assist in further enhancing its competitive advantage in the context of international marketplace. 2. Analysis of the External Environment 2.1. Macro Environment Analysis: PESTEL 2.1.1. Political Analysis Tesla Motors Inc. financial report of 2014 reflects that company is taking its global operation in over 80 sales and gallery stores situated in North American, European, and Asian region in around 116 different locations (2Tesla Motors, Inc., 2014). Besides, having the global operation, Tesla has to deal with the different political scenario and environment to sustain in the competitive market. In this regard, one of the political factors that the industry needs to consider would considerably effect the operation is regarding environmental protection law, through maintaining the restricted level of emission. Another aspect affecting the political environment is regarding the establishment of the US government program for the enhancement and development of the technological vehicles. Besides, for effectively performing the industry in the international environment, is much likely get affected because of the different political environment of the countries in terms of their legislations, tax policies, and political conditions among others (Environmental- protection.org.uk, 2014). 2.1.2. Economic Analysis Similarly, the economical factor remains the key point of concern for the Industry of Tesla because this factor is beyond the control of any company and significantly influences cost, price, demand, and profitability. Besides, alteration in the related products and services like change in the fuel pricing is much likely to have key influence over the perception of people and affect the industry to a considerable extent. On the other hand, the event of financial crisis significantly affects most of the develop and developing nations economy, and have key impact over the purchasing power of customers through decreasing the demands of most of the products especially the luxurious products like car. The economy has a direct impact on the sale of vehicles thus affects the growth and sales to a considerable extent (BBC News, 2012). 2.1.3. Social Analysis Social factors also play a considerable role as it affects the performance and operation of business. This includes lifestyle, level of education, and living standard, which have significant impact over the various international businesses including Tesla Motor. According to one of the new report, it has been highlighted that people are changing their perception over the use of gasoline fuel products due its associate costs and environmental impact. Moreover, people are been judged other status based on car they own. However, having the ownership of electric vehicles the social status of individual increases. Besides, due to increase in the wealth and saving of some of the societal group, people started making considerable investment over premium vehicles (Reuters, 2014; Cooney & Yacobucci, 2007). 2.1.4. Technological Analysis Technology advancement and its implication over development of product are considerably advantageous for customers and business. In the context, of positioning of the industry, advancement in the technology and growing use of internet has significantly assisted in expansion of automobiles industry. In the current scenario, the advancement in the technology has considerably allowed the automobile industry players to introduce advance features and customisation in the cars for technological enhancement (Fleming, 2014). 2.1.5. Environmental Analysis The Industry of TESLA are taking consideration of the environmental forces that has been established by various regulatory authorities with the prime intention to safeguard environment and their functional interest in the long run through making eco-friendly and fuel-efficient vehicles for a sustainable growth. Awareness regarding the environmental operations helps the industry in providing benefit to people and affects the production (Christian, 2010). 2.1.6. Legal Analysis In respect to maintaining the functional aspects in the long run, the industry encompasses its business operations through working in line with the parameter of different government policies. In this instance, the major point of concern for the automobile industry is the US economy is regarding the franchise law that prevents other car dealers and create significant problem for the company meet the users directly (Fisher, 2014; Muller, 2013). Thus, the external environment has an impact on the industry to ensure that all the regulations are followed by the automobile industry to meet the expectations of customer along with the economy. The success of the firm depends largely upon various aspects and the competitive factors relating to the external environment. 2.2. Micro Environment Analysis: Porter’s Five Forces Model ‘Porter‘s competitive forces model’ is an integral mean to measure the strategic analysis through considering the attractiveness of the business and develop strategic innovation to improve the competitive position of the company (Hitt & et. al., 2009). 2.2.1. Threat from New Entrance In the current scenario, the business environment faces threat of new entrance due to open market structure. The industry have high barrier regarding the finances hence faces threat from new entrants. In this context, the marketplace of automotive faced considerable challenges due to high level of investment, building strong brand image and ensuring competitive distribution channels. Besides, during the time of incorporation and development of electric automobile industry has gained considerable amount of government supports leading to its enormous growth (Fleming, 2014). 2.2.2. Bargaining Power of Buyer The market leaders in this industry are heavily relied on their relationship with others. Thus, building healthy relationship is considerably important for the industry for a sustainable growth, and for significant share of overall profitably. In this regard, the industry cannot provide high bargaining power in the hand of such buyers (Brown, 2013). 2.2.3. Threats of Substitutes Furthermore, in the context of automotive industry the threat of substitution is considerably high. Larger number of substitutes of other brands providing economic and fuel-efficient cars is available in the marketplace. Similarly, the choice of walking and utilising motor cycles is also a convenient mean of covering the shorter distance. On the other hand, utilising the mass transportation including bus, subways, and trains are also being considerable choice for the people (Fleming, 2014). 2.2.4. Bargaining Power of Supplier In the context of the electric vehicles the bargaining power of the suppliers are considerably high because undertaking the process of production and distribution heavily rely on the components delivering and any significantly lag; will adversely affect the positioning of the company. Besides, the annual report of company highlighted the fact that company acquire it supplies from different areas around the world thus, it considerably makes high bargaining power of the suppliers (2Tesla Motors, Inc., 2014; Harryson & Keller, 2013). 2.2.5. Intensity of Competitor Rivalry The rivalry position in the automotive industry is much higher, which makes the market as highly competitive. However, increase in the global sphere of revenue the industry is diversifying its product range to minimise the competition (Fleming, 2014). With respect to the macro and micro analysis of the Industry of Tesla, it is important to understand regarding the aspect of Industry Life Cycle (ILC) theory. The industry undergoes several phases in order to gain success from the introduction phase to that of the decline phase. The various phases of cycle are influenced by the external and the internal environment for the growth and expansion. The phenomenon of life cycle is important to enhance the sales growth and changing performances. The life cycle of the industry can be enhanced by taking into consideration the green business concept and by following the ethical aspects considering the policies (Boone & Kurtz, 2011). 3. Analysis of the Internal Environment Tesla Motors Inc. conducts its operation in the global environment, while its core segment is the domestic market in the US. Additionally, developing, production, and distribution of fully electric components and vehicles are its key activities. Besides, company all around the world have its own network of sales and supercharger station that created company unique business proposition in the context of automotive industry (2Tesla Motors, Inc., 2014). 3.1. Resource Analysis of the Company 3.1.1. Financial Analysis Financial aspect of the company plays an integral role that determines the position of the company into the market place. During the initial period of incorporation, Tesla unconsciously fails to yield considerable amount of profitability. The revenue of the company has significantly been $204 million in the year 2011 to 3.198 billion during the year 2014 (Nasdaq, 2014). Research and development is regarded as the considerable expense that Tesla undertakes to expand its business and new products and services. In this regard, during the last quarter of 2014 company spends around 139.56 million (YCharts, 2015). Furthermore, the current assets and current liability of company during the end of financial year was $ 3,198,657 and $ 2,107,166 respectively, which reflect that the current ratio is 1.15. Correspondingly, this also reflected that company have strong financial position in terms of meeting their short-term obligations (Yahoo Finance, 2015). However, on the other hand, the gross profit of the company has been grown by 61 million to 881 million from 2011 to 2014 (the growing trend has been shown in appendix) (Nasdaq, 2014). 3.1.2. Physical and Technological Aspects Correspondingly, the Tesla Inc. property, plant, and equipment significantly in the end quarter of 2014 was amounted to around 2,596 million, which is around half of its total assets. Moreover, Tesla has substantial long-term growth, and profitability opportunity, as the vehicles developed by the company has been providing excellent equipment (Guru Focus., 2015). Furthermore, the company is planning to add more workforces to increase its production capacity by 1 million units per year. The physical and technical resources play an important role in maintaining the competitive advantage for the company. In this regard, it can be ascertained that the property, plant, and other resources allows the business to effectively carry out its operation and deliberately enhance the growth of business (Fleming, 2014). 3.1.3. Human Resources CEO and Co-Founder Elon Musk lead the organisation through effective manage the workforce of the company in effectively and efficiently through his leadership style. Mr. Musk is highly responsible for taking majority of the firm strategies through integrating his personal ambitions with the organisational goals. Moreover, Musk initially started the business with his own contributions, wealth significantly acquired from PayPal (Steen, 2014). In this context, in order to facilitate the company’s overall goal and objective and penetrate its share in the existing markets and expanding its business, the company increases its workforce to 10,161 employees during the year 2014 through significant adding of around 5,859 new employees in comparison to figure of 2013 (Tesla Motors, 2015). 3.1.4. Innovation and Creativity The activities of Tesla are highly devoted towards innovation and creatively through making considerable investment over research and development activities. One of the creative and innovative activities of the company is that the engineers of the company has developed the process through which energy has been consumed by the battery and transferred to motor to develop magnetic fields, which in turn enables to drive the motor around 14,000 revolutions per minute. Furthermore, the electric drive train mechanism in the Tesla’s motor vehicles enables the drivers to switch from ‘drive mode’ to ‘generating mode’ (1Tesla Motors, 2015). 3.1.5. Organizational Capabilities Organisation flourishes its activities to turn their intangible assets into creative output through majority of its contribution in the research and development program. Moreover, company also leverages its industrial and intellectual property capabilities to form effective relationship with the other companies. Their business partners include Smart, Toyota in formation of electric RAV4, Mercedes-Benz, as well as Panasonic for developing lithium battery cells (2Tesla Motors, 2015; 3Tesla Motors, 2015; King, 2012). 3.2. Value Chain Analysis The analysis of Value Chain significantly assists the company in determining its strengths and weaknesses through developing proper understanding of the activities that benefits the company. Primary activities are directly related with the production on the other hand, support activities assist in enhancing the primary activities (French & et. al., 2011). 3.2.1. Primary Activities Operation Tesla operates its services in the global market through establishing its own sales and distribution network in the nation, which includes North American, European, and Asian regions (2Tesla Motors, Inc., 2014). Inbound Logistics The operation of the company heavily rely over the necessary components that has been distributed from numerous renowned suppliers all around the world to develop effective and most convenient vehicles for customers(2Tesla Motors, Inc., 2014) Outbound Logistics In terms of the distribution channel of Tesla it comprises 80 sales and gallery stores located in around 116 different location of North American, European, and Asian region to initiate the customers services efficiently (2Tesla Motors, Inc., 2014). Furthermore, company also provides online buying facilities to its probable customers. Marketing According to Foley (2014) Tesla, neither advertises its product over the traditional form of advertisement nor outsources it to any ad agency. In this regard, Tesla Motors Inc. highly enhances the awareness of different models through window display and web based marketing. Service In the global marketplace Tesla, possess its own products and service units, which they developed to provide free charging networking services to customer’s vehicles and enhance its brand value (Baliga, 2009). 3.2.2. Supporting Activities Partnership Relationship Tesla has develop healthy relationship with its partners, which includes Smart, Toyota, Mercedes-Benz, and Panasonic that allow the company to gain significant assistance and benefits through the availability of information’s (2Tesla Motors, 2015; 3Tesla Motors, 2015; King, 2012). Research and Development As stated above in order to develop most creative and innovative products Tesla is highly devoted towards making considerable investment in its research and development activities, which work as a supportive role in enhancing the competitiveness of the business (2Tesla Motors, Inc., 2014). Plant and Infrastructure In order to maintain consistency in the performance Tesla Motors has significantly adopted horizontal organisational structure wherein the CEO and Co-Founder Elon Musk remains the key decision maker in the organisation. Moreover, this approach of organisational structure enables the company to form effective communication process and quick decision making through eliminating lags. Furthermore, Elon Musk builds strong corporate culture with his effective leadership and judgement practices (Johnson & et. al., 2010). 4. Analysis of PR Crises The event of financial crisis of 2008-2009 has significantly influenced the stability of the worldwide economy. The existence of crisis has been noticed during the year 2007 with majority amount of credit crunch that lowers the perception of investors in the stock market and lead to liquidity crisis in the economy. The scenario is further worsened in the beginning of 2008 having immense impact over the financial market (Davies, 2014). In this regard, Ghadami & et. al. (2010) highlighted that the event of 2008 eventually led the banking sector of various nations to strengthen their policies to eradicate the impact of financial sector. On the other hand, international business that was largely relying over the credit financing has adversely affected due to lower credit financing and tightening in the financial policies. Correspondingly, the event of crisis had noteworthy impact over the operation of Tesla Motors. In this regard, with the eventual impact of the crisis over the working of Tesla, company decided to shutdown the engineering facility that was situated in Michigan. Additionally, Tesla Motors lay off its workforce and decided to setback the launch of its new vehicles over that period. Besides, with the high level of credit crunch led to difficulty to raise finance from market and needs to rely over the government loans. Furthermore, the additional pressure from the stakeholder led to change in the CEO of the company. On the other hand, low amount of funding in the hand of customers makes Tesla Motors products beyond reach and affordable. Notably, company also delays the promotion of Model S until they get additional funding from federal government during the period of crisis (2Tesla Motors, Inc., 2014) Correspondingly, it has the adverse impact over the performance and operation of the business. Thus, in order to mitigate its adverse impact company significantly makes various reforms over its strategies and action. 4.1. Reputation Management With the change in CEO, Tesla’s in order to strengthen its competitive position derived its vision to make its noteworthy image in the automotive industry through its creativity and innovation. Besides, company continuously developed various models, as per its commitment of reducing people reliance over the oils and gas consumption and use, which assist the company to develop its high reputation among the inhabitation through environmental concern idea. Branding and image establishment plays a key role in reputation building (Haberberg & Rieple, 2008) In this regard; ‘self-proclaim Silicon Valley approach’ is a significant approach of the company to enhance its brand image. Furthermore, Tesla through its innovativeness and creativities try to position itself like Google and Apple. In this regard, after the end of crisis period company launches its Model S, which has significantly over performed in the market and won ‘2013 Motor Trend Car of the Year’ award (MacKenzie, 2013). Furthermore, Model S of Tesla has over performed in the market that in terms of safety rating it receives maximum-possible 5-star from ‘European New Car Assessment Programme’ (Bachman, 2013). 4.2. CSR The activities of CSR assist the businesses to conduct its operations and activities in achieving the ultimate goal of the business in much ethical way (Nordberg, 2011). In this regard, Tesla Motors steps towards developing exclusive with the mean of electricity to serves environmental sustainability, which ensures emission free transportation alternative to customer. Moreover, in order to promote the high level of innovativeness and step towards reducing the adverse environmental impact Tesla takes a brave step through making its patent free for use during the year 2014 (Council for Corporate Responsibility, 2010). 4.3. Ethics Responsibility In order to meet the expectation of providing highly affordable and playing considerable amount of consideration to the stakeholder of the company, business unit has to compel its operations and activities in a highly ethical manner (Luthans & Doh, 2012). In this regard, Tesla takes the approach of dealing with customers directly through eliminating the presence of intermediaries towards problems solving and distribution of cars. Furthermore, the distribution network of company works as education centre for customers in providing detail-learning approach to customers. Nevertheless, company endure its vehicles in such a manner that it requires considerable lower amount of services as compared to gasoline cars (Sparks, 2014). 5. Strategic Analysis 5.1. Business Level Strategy In the business level Tesla SBU should focus over the development of product, development towards strategy, development of new vehicles and focus on services Correspondingly, the business unit also focuses over expansion of its area of operation in such location, which has higher possibility of growth and expansion Furthermore, company also focuses towards penetration of the market and gaining customers through more research and development activities with its promotional activities Aim towards developing products through the mean of differentiation and adding new features and technologically in its vehicles (Hoskisson & et. al., 2012; Ireland & et. al., 2008) 5.2. Corporate Strategy In the corporate level Tesla makes a surprising move through making its patent free for increasing the number of electric vehicle for everyone to use Initially in order to take the advantage of mass production of electronic vehicles during the year 2008 Tesla Motor introduced Tesla Roadster model Moreover, in the year 2016 Tesla Motors is planning to introduce its Gen III Model in the field of electronic vehicle During the event of boom in the Sport utility vehicle the company has taken significant advantage through introducing its sporty look Model X One of the corporate level strategy that Tesla undertakes in the recent year was through growing and further expansion of brand image and business over global market especially in Asia Pacific because of high possibility growth in China Moreover, in order to adopt the changing needs of customers, Tesla has significantly invested considerable amount of funds in the production expansion (Deutsche Welle, 2015; 4Tesla Motors, 2014) 5.3. Strategies Suggested for future/Evaluation Based on proper analysis of the strategic position of Tesla Motors, it has been identified that company noticed significant reform in it strategies since its incorporation that assisted them to boost its revenue constantly. Additionally, on the basis of the identified strategic position of Tesla in order to sustain its market share in the international market, company needs to adopt various strategic action that helps to mitigates its weakness and threats to capitalise the opportunities over the future. Thus, in this regard, company needs to provide considerable amount of attention towards the low profitable or loss making models through enhancing its product. Furthermore, it has been considerably important for the company to address and work towards reducing it weakness or threat that they significantly face in some models of its vehicles (Mintzberg, 2008). Correspondingly, it has been equally important for the company to develop its vehicles based on the perception and changing trend of customers, which will considerably assist company to build effective brand image and recognition in the hand of customers. Similarly, the major competitive advantage of the company is efficiency in developing the electronic vehicles with significant amount of investment in the research and development activities that can aid in the development of new vehicles and acquire major acquisition of market share. Furthermore, in current scenario putting noteworthy amount of consideration to different stakeholders is of utmost importance for making success in the market place (Manhas, 2010). Nevertheless, based on the scenario of the distribution practice of the vehicles, it has been ascertained that applying the approach of distribution of vehicles based on adding the intermediaries could also prove the effectiveness of strategies that will assist to highly concentrate on innovativeness and creativity activities. Furthermore, with the continued development and improving the specifications as well as qualities in the famous vehicles of the company through the effective in-depth observation according to the needs, preferences and demands along with safety aspect of customers will ensure better position of company. Additionally, with the advancement in the technology and free patent policy of the company, the fear of developing cheap and low quality vehicles will be increased in the market place. Thus, in this regard, Tesla needs to ensure regularity towards developing creative and innovative products and/or services to its customer at a very affordable price through building uniqueness in its vehicles. Alternatively, workforce plays an important role in effective operation of the businesses. Thus, in future in order to strengthen the position of business Tesla should make considerable effort towards retaining the existing talent through the approach of better interpersonal relationship, motivation, remuneration and compensation towards talented employees (Kotler & Keller, 2011). Similarly, based on the assessment of micro and macro environment along with the internal competence of Tesla the following measure could prove to be an effective strategic action in terms of increasing its revenue, profitability, and market share over future: Tesla through making effective innovation and creativity can expand its product models along with wide sphere promotional activities Diversify its business activities in the other segments through utilising proper funding mechanism Make noteworthy changes through reengineering in the low profitable and less demanding models of cars and geographical locations Effectively utilise its research and development activities to emphasis towards the changing trends, needs and demands of customers Furthermore, enhances innovative specification in the vehicles, which is considerably important in the automotive industry to develop competitive advantage in the market (Kotler & Keller, 2011) 5.4. Suggestions and Recommendation However, taking into consideration of the current trend and strategic analysis of Tesla Motors, multiple strategic approach with the prime attention of intensify growth and expansion has been made. Moreover, the following suggestion and recommendation will be highly beneficial for Tesla Inc. Tesla should work through focusing on the middle and lower class people, which will help in expanding the business revenue Considerably, advertisement will be an integral aspect for the company, as the company is newly established thus, it can utilise various media application and approach to promote its product and services Besides, with considerable increase in the sales of vehicles, Tesla continuously highlights loss in its net income due to high amount of debts. Thus, in this regard, it has been important for the company to make effective approach of strategies to reduce operational cost Divestment or reengineering low profitable vehicles models Increase the well-being of the overall organisational environment to eradicate the internal issues such as turnovers, internal conflicts among others that will help the business in an effective manner Diversify its business activities in the untouched and high profitable market Correspondingly, the previous financial position of Tesla reflected that company makes its considerable investment in research and development activities. In this regard, through further emphasis over this factors will help business to measure customers changing perception Creativity and innovativeness in the vehicle development aspect for better competitive performance (Carpenter, 2007; David, 2007) 6. Conclusion The above-mentioned discussion will be highly beneficial in understanding the micro and macro environmental aspect of Tesla Motors. Besides, the discussion also outlines the multiple facts regarding the growth of the business since its incorporation during the year 2003. Additionally, the high concern over the environment is the key concept behind the development of electric vehicles. Correspondingly, the event of financial crisis during the 2008 possessed significant impact over the operation and activities of the business. In this context, multiple facts including e significant approach towards the CSR activities, developing its reputation through integral concern over the environmental along with the ethnic factors has assisted Tesla to develop positive brand image. Besides, the analysis of the internal environment of the company reflected that the revenue of the company is constantly increasing but due to high debts, the profit is negligible. 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[Online] Available at: http://files.shareholder.com/downloads/ABEA-4CW8X0/3965417727x0x808854/BB31868E-588E-4E95-B72E-729E88E9E932/Q414%20Shareholder%20Letter%20Final.pdf [Accessed March 09, 2015]. 2Tesla Motors, Inc., 2014. Form 10-K Annual Report. Tesla. [Online] Available at: http://ir.teslamotors.com/secfiling.cfm?filingID=1193125-14-69681&CIK=1318605 [Accessed March 09, 2015]. YCharts, 2015. Tesla Motors Research and Development Expense. Data. [Online] Available at: http://ycharts.com/companies/TSLA/r_and_d_expense [Accessed March 09, 2015]. Yahoo Finance, 2015. Tesla Motors, Inc. Balance Sheet. [Online] Available at: http://finance.yahoo.com/q/bs?s=TSLA+Balance+Sheet&annual [Accessed March 09, 2015]. 8. Appendix 8.1. Total Revenue of Tesla from 2011 to 2014 (Source: Nasdaq, 2014) 8.2. Gross Profit of Tesla from 2011 to 2014 (Source: Nasdaq, 2014) 8.3. Tesla Model S 8.4. Tesla Model X 8.5. Tesla Superchargers Read More