Back Ground
Co-Founder and key
success factor
I do not doubt that the key
driver of Tesla is at a one man show of the CEO and Co-Founder , Elon Musk. Elon manages the innovation of the tech
company in set up its Goal setting. Elon
has successful story in his former company Pay Pal, he was the co founder of
Pay Pal.Elon is also involved in space x. Company which is concerning in
advancement of rocket Tech.
Elon interest are in space, clean energy and internet. He thought himself
with computer programming when he was a child.
Elon is also supporting his
cousin clean energy business at Solar City. Solar City is the biggest solar
energy project in USA. Elon collaborates with solar city to support battery
equipment for Tesla's Vehicle. I think elon should move to Germany, the nation
with biggest solar energy production.
Business Model
The company applies an integrated
innovation in material science, internet and clean energy.
The company produces electric
power train system for major player in vehicle maker such as Toyota, BMW,
Mercedez Benz and Daimler. The company provides all spare parts and builds
supercharger network for charging at several cities, provide retail and service
center. The business model could engage the customer. The company is also
providing resale value guarantee for the customer to boost revenue with such
financing program.
The electric car which has been
produced is Tesla Roadster. The available models of roadster are model x and
model s. The car is built for premium segment because it is an electric sport
car.
Recent Condition
Tesla begins to produce vehicle
for major player company. I think Elon do different strategy in order to reduce
competition with major player such as Toyota or BMW. In 2013, Elon plans to
produce 40,000 vehicles, a sport sedan model for BMW. He decided to make partnership
with BMW.
The company starts to expand in Europe to sell the vehicle.
Key Financial term
The company experiences losses in
several consecutive years since 2008 until 2012. This is a common condition for
start up company. The cash flow from operation and cash flow for investing are
negative. The company gets the fund from common stock and Long term debt for
financing the business.
The revenue in 2012 increase 159
% up compared to 2011. But i think the company has to check its aging
receivable and collecting the money ASAP if there is overdue payment. The
investor also has to check the sales contract because the inventory in 2012
increases 436 % up than the previous year but i think this is all right because
it is financed by 440 % of increase of account payable in 2012 compared to 2011,
an indicator of vehicle piled up in its warehouse.
The type of operational
management usually has big impact in cash to cash cycle. In operating lease
concept, the company records the vehicle at the balance sheet. The net
operating lease in 2012 is drop 14 % compared to 2011. This means the car order
may drop or there were many resale cars from customer.
The company faces higher competition
in high quality sport electric car segment, it is indicated with the decline of
profit margin since 2010 until 2012: 21,79 %, 19,80 % and 13 %. I think at the
next year the profit margin will be lower because they start act as vehicle
manufacturer for another company based in three years trend. BMW is doing its
branding strategy in sport electric car, they buy car from another manufacturer
then sell it with BMW as its Logo.
The company spend 6.89 % of its
revenue for Research and development cost. This was lower than the same cost in
2011 which is at 9 % of its sales. It seems the company start to reduce cost to
increase profit.
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Outlook
Sport electric car may compete
with natural gas car. Tesla needs more capital to provide supercharger network
for the customer. Natural Gas increases in its production level, mostly in US.
in order to continue growth i think the company need to produce hybrid car.
Resale Value guarantee may be hooks the
company at the future. It represents that it doesn't confidence in electric
sport car.
The Revenue will increase at the
end of 2013 compared to the same period in 2012. The inventory increases
sharply almost fifth times bigger but it has been balanced with 5 times bigger on its account payable and the company also has high cash level, 18 % of its total asset in 2012. It
means supplier believe that Tesla will sell more and i will invest more in
supercharger network and service center. The working capital is negative means
that the company does new strategy in run the business. There are a certain
contract between supplier, Tesla and the corporate buyer.
| Asset | Sales | |
| 2008 | 51,699.0 | 14,742.0 |
| 2009 | 130,424.0 | 111,943.0 |
| 2010 | 386,082.0 | 97,078.0 |
| 2011 | 713,448.0 | 148,568.0 |
| 2012 | 1,114,190.0 | 385,699.0 |
| 2013 | 1,800,000.0 | 537,593.1 |
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