Businessweek

Tesla Motors, Inc. designs, develops, manufactures, and sells electric vehicles and advanced electric vehicle powertrain components. Vehicles and Products Model S: Model S is an electric, 4-door, 5-adult passenger sedan that produces 0 tailpipe emissions and accelerates from 0 to 60 miles per hour in as low as 4.4 seconds in its performance version. The company offers Model S with various battery pack options – 40 kWh, 60 kWh, and 85 kWh, which offer a range on a single charge of approximately 265 miles. To complement its range capabilities, it also offers the capability to fast charge Model S vehicles equipped with either the 60 kWh or 85 kWh battery packs at its Supercharger facilities. In addition, the company designed Model S to incorporate a modular battery pack in the floor of the vehicle. As of December 31, 2012, the company had delivered approximately 2,650 Model S vehicles. The Tesla Roadster: The company’s Tesla Roadster is an electric sports car. The 2-seat, convertible Tesla Roadster could accelerate from 0 to 60 miles per hour in approximately 3.7 seconds and has a maximum speed of approximately 120 miles per hour. The Tesla Roadster also has a range of 245 miles on a single charge. As of December 31, 2012, the company had delivered approximately 2,450 Tesla Roadsters to customers in approximately 30 countries. Model X and Future Vehicle Roadmap: The company has designed Model S with an adaptable platform architecture and common electric powertrain that it intends to utilize to create future electric vehicle models. In 2012, the company revealed an early prototype of the Model X crossover as the first vehicle it intends to develop by utilizing the Model S platform. Powertrain Development and Sales In addition to the company’s own vehicles, it designs, develops, manufactures, and sells advanced electric vehicle powertrain components to other automotive manufacturers, as well as provides services for the development of electric powertrain systems and components. It has provided development services and powertrain components to Daimler AG (Daimler) for its Smart fortwo, A-Class, and B-Class electric vehicles. It has also developed an electric powertrain system for Toyota Motor Corporation (Toyota) for use in its RAV4 EV and began shipping production components to Toyota in 2012. Customers and Selected Relationships The company sells its cars primarily to individual customers. It has strategic or commercial relationships with Daimler, Toyota, and Panasonic Corporation. The company intends to expand its business by developing and selling additional powertrain components and systems to Daimler, Toyota, and other third party OEMs. Sales and Marketing The company markets and sells cars directly to consumers through an international network of company-owned stores and galleries. It operates a network of 32 stores and galleries in North America, Europe, and Asia. Governmental Programs, Incentives, and Regulations The company’s vehicles are subject to, and the Tesla Roadster complies with, or is exempt from, various regulatory requirements established by the National Highway Traffic Safety Administration, including all applicable United States federal motor vehicle safety standards. The Federal Trade Commission requires the company to calculate and display the range of its electric vehicles on a label the company affixes to the vehicle’s window. The Clean Air Act requires that the company to obtain a Certificate of Conformity issued by the Environmental Protection Agency and a California Executive Order issued by the California Air Resources Board with respect to emissions for its vehicles, including Model S. The company also subjects its battery packs to the appropriate tests specified in the Society of Automotive Engineers J2464 and J2929, which include further tests, such as immersion, humidity, and exposure to fire. Intellectual Property As of December 31, 2012, the company had 117 issued patents and approximately 258 pending patent applications with the United States Patent and Trademark Office, and internationally in a range of areas. Its issued patents start expiring in 2026. Seasonality Sales of the Tesla Roadster have fluctuated on a seasonal basis with increased sales during the spring and summer months in the company’s second and third fiscal quarters (year ending December 2012) relative to its fourth and first fiscal quarters. Competition The company’s competitors include Audi, BMW, Lexus, and Mercedes. History Tesla Motors, Inc. was founded in 2003. The company was incorporated in the state of Delaware in 2003.