Toyesla

TOYOTA – TESLAAlliance

Nyla Kayel

Summary

Who is Tesla ?

Who is Toyota ?

Why they formed this alliance ?

What they did ?

Success & Failure

Conclusion

Who isTesla ?

Founded in 2003 by Martin Eberhard and Associates

Designs, manufactures, and selling electric cars and Electric vehicle powertain components.

Public company that trades on the Nasdaq (TSLA)

Who isTesla ?

Headquarters in Palo Alto, in the Sillicon Valley, CA.

3,000 employees

18 Dealerships worldwide and Sells through Star Gate (Online platform)

Strenghts Weaknesses

Electric Vehicle Technology High Cost of Battery Technology

Environmental-Friendly High cost of ownership

Modern Look, sleek design Questions about battery disposal

Loyal Fan Base Limited availability

Opportunites Threats

Expand sales locations Competitors entering Market

New models with low cost Other Disruptive Technologies

First mover advantage Gasoline-Electric Hybrids

Economies of Scale Global economy slowdown

Tesla SWOT

Who isToyota ?

Japanese Multinational Automaker Headquartered in Toyota, Aichi, Japan. Founded by Kiichiro Toyoda in 1937 Produces automobiles, commercial vehicles, engines, motorcycles Traded in all japanese exchanges, NYSE (TM), and

London Stock exchange (TYT) More than 300,000 employees worldwide The eleventh-largest company in the world by

revenue In 2012, they reported 200,000,000

manufactured vehicles

Toyota SWOT

• Competitors in new EV Market

• Hybrid Technology loses steam

• Pushback against gasoline vehicles

• Declining global economy

• Environmental awareness

• Low priced vehicles

• Expanding sales and manufacturing locations

• Research and Development

• Competitor look-a-likes

• Recent Recalls• No electric

vehicle models• Increasing gas

price

• #1 hybrid car company

• Brand Loyalty• Strong Reputation• Excellent Quality• Large selection of

models StrengthsWeaknes

ses

ThreatsOpportunities

Tesla’s Strategy

Future Cash Flows

Develop Line of Electric Vehicles

Pursure new technology through R&D

Create shift in Auto industry

Toyota’s Strategy

Future Cash Flows

10% Hybrid by 2015

Sustainable Auto R&D

Every Model Hybrid Option by 2020

Why alliance formed?

Why alliance formed?

No EV yet(Nissan Leaf

2010)

Why alliance formed?

No EV yet(Nissan Leaf

2010)

NUMMI

Why alliance formed?

No EV yet(Nissan Leaf

2010)

NUMMI

Image

Why alliance formed?

No EV yet(Nissan Leaf

2010)

NUMMI

Image

Technology

Why alliance formed?

No EV yet(Nissan Leaf

2010)

NUMMI

Image

Technology

Reputation

Why alliance formed?

No EV yet(Nissan Leaf

2010)

NUMMI

Image

Technology

Reputation

Sales Network

What they do?

50 mil(2.5 %)

What they do?

50 mil(2.5 %)

TPS

NUMMIPurchase

What they do?

50 mil(2.5 %)

TPSPanasoni

cBattery

EV technolo

gy

NUMMIPurchase

Tesla’s Success

Revenue 500 mil (16x comparing to last year)

Tesla’s Success

Revenue 500 mil (16x comparing to last year)

Surplus on profit for the first time ever (11mil)

Tesla’s Success

Revenue 500 mil (16x comparing to last year)

Surplus on profit for the first time ever (11mil)

Improvement in production line (-40% in production time)

Toyota’s Success

EV RAV 4

Concern

Charger standards FCV (Fuel Cell Vehicle)

Conclusion

WIN-WIN SITUATION