This is a presentation for my final course pape. The survey for the Perception map was done with a help of responders (students) aged 23-31. I will be happy to have more answers in order to continue research on this topic, the link is below. https://www.surveymonkey.com/r/NHQFKF5 For any more questions, do not hesitate to contact me.)

1. FINANCIAL ANALYSIS OF
TESLA AND ITS SURVIVAL
By Kuslyva Kateryna
UVA3D1
strategy

2. Outline
• Situational analysis
• Company's overview
• Independent research
• Key data
• DuPont
• Credit rating
• Date of potential shutdown
• Conclusions and Recommendations

4. Tesla history
Founded in 2003
By Martin Eberhard
and Marc Tarpenning
In 2004, Elon Musk
Provided $7,4B to
Tesla and become a
chairman

5. In July 19, 2006,
the first Tesla car
introduced to world
June 30, 2008 Tesla
introduced Model S
Started from $50,000

6. In February 9, 2012,
the Tesla Model X is
presented
The same 2012 year
200 charging station
established in USA

7. In March 31, 2016
was presented Tesla
Model 3
In 2018:
Gigafactory, Roadster
And the greatest loss.
Ever…

8. Product Line
• Model S
• Model X
• Model 3
• Roadster
Cars
2008 2012
20162018

9. Product Line
• Solar roof
• Powerwall
• Solar panels
• Gigafactory
Energy

10. Organizational Chart
Functional based hierarchy
Number of employees 2017: 37 543
Position Name
Chairman & CEO Elon Musk
Technical manager JB Straubel
Chief financial officer Deepak Ahuja
Manufacturing vice
president
Gilbert Passin
Business Developer Diamond O´Connel
HR vice president Amon Geshiru
Supply Chain Peter Carlsson
Manager of the Model S Jerome Guillen
Key figures:

11. Tesla and CSR
• There are 5 main groups, according
to CSR prioritizing
Communities
Customers
Employees
Investors /
Shareholders
Governments
• Tesla is one of the leading companies in
renewable energy.

12. Tesla as Radical innovation
• Technical differences
• Powertrain differences
• Service differences
• Development differences
• Manufacturing differences

13. Competitors of Tesla
Jaguar I-Pace in 2018
By 2025 company planning
all its car to be produced
with electric engine

14. Competitors of Tesla
Porsche Mission in 2019
By 2020 together with
Ford, Audi and Mercedes
plan to built charges
around the world

15. Competitors of Tesla
Hyundai Cona in 2018

16. Competitors of Tesla
Aston Martin Rapide in
2019
Strategic alliance with
Le Eco for developing
the car
Limited edition 155 cars

17. Competitors of Tesla
Aston Martin Rapide in
2019
Strategic alliance with
Le Eco for developing
the car
Limited edition 155 cars

18. Competitors of Tesla
Mercedes EQ in 2019

19. Competitors of Tesla
Audi Etron in 2019

21. Perception map

22. 1. Strong contribution to CSR
2. Provides solution to limited
amount of oil
3. Intellectual property
4. Strong brand
5. Strategical alliances
6. Vision
7. Elon Musk
1. BRICS countries
2. Cooperation with governments
3. Strategical alliances
1. Stable and huge investments in
R&D
2. Customer’s perception toward
electric cars
3. Little personal experience
4. Charging time
1. Competition
2. Loss making
3. Luck of production
SWOT

23. Financial analysis
Key data
Market capitalization $51.8B
Enterprise value $57.9B
Main shareholders
• Elon Musk for the end of December
2017 – $19,6B worth, which equal to,
approximately (19,6B / $305) = 62.4M
shares
• Jeffrey B. Strudel = 326,301 shares
• Kimbal Musk = 148,333 shares

24. DuPont
IMPUTS 2013 2014 2015 2016 2017
Net Loss -$74,014 -$294,040 -$888,663 -$773,046 -$2,240,578
Sales $2,013,496 $3,198,356 $4,046,025 $7,000,132 $11,758,751
Total Assets $2,416,930 $5,849,251 $8,067,939 $22,664,076 $28,655,372
Equity $667,120 $911,710 $1,083,704 $4,752,911 $4,237,242
OUTPUTS
ROE -11.09% -32.25% -82.00% -16.26% -52.88%
NPM -3.7% -9.2% -22.0% -11.0% -19.1%
AT 0.83 0.55 0.50 0.31 0.41
EM 3.62 6.42 7.44 4.77 6.76

25. DuPont
IMPUTS 2013 2014 2015 2016 2017
Net Loss -$74,014 -$294,040 -$888,663 -$773,046 -$2,240,578
Sales $2,013,496 $3,198,356 $4,046,025 $7,000,132 $11,758,751
Total Assets $2,416,930 $5,849,251 $8,067,939 $22,664,076 $28,655,372
Equity $667,120 $911,710 $1,083,704 $4,752,911 $4,237,242
OUTPUTS
ROE -11.09% -32.25% -82.00% -16.26% -52.88%
NPM -3.7% -9.2% -22.0% -11.0% -19.1%
AT 0.83 0.55 0.50 0.31 0.41
EM 3.62 6.42 7.44 4.77 6.76

26. Revenue
2013 2014 2015 2016 2017
Revenue $2,013,496 $3,198,356 $4,046,025 $7,000,132 $11,758,751
Cost of
Revenue
$1,557,234 $2,316,685 $3,122,522 $5,400,875 $9,536,264
• In the beginning cost of the
battery itself was about
90,000$, nowadays tis price
has dropped to 36,000$.
• investment in purchasing of
property and equipment in
2017 was $3,414,814,
compare to the previous
2016 year - $1,280,802

27. Net profit margin
2013 2014 2015 2016 2017
NPM -3.7% -9.2% -22.0% -11.0% -19.1%
2013 2014 2015 2016 2017
Net Loss -$74,014 -$294,040 -$888,663 -$773,046 -$2,240,578
Sales $2,013,496 $3,198,356 $4,046,025 $7,000,132 $11,758,751
Greatest loss
Lowest NPM

28. Assets Turnover
2013 2014 2015 2016 2017
AT 0.83 0.55 0.50 0.31 0.41
In order to perform
better in this ratio,
Tesla has to increase
the number of outputs

29. Equity Multiplier
2013 2014 2015 2016 2017
Total Assets $2,416,930 $5,849,251 $8,067,939 $22,664,076 $28,655,372
Equity $667,120 $911,710 $1,083,704 $4,752,911 $4,237,242
2013 2014 2015 2016 2017
EM 3.62 6.42 7.44 4.77 6.76
Tesla is supported by loans, investors and shares issuing
For 2017
Debt: $9.4B
Financing: $4.4B
Equity: $4,2B

30. Credit Rating
….
2013 2014 2015 2016 207
Financial
Debit
$586,119 $1,806,518 $2,021,093 $5,860,049 $9,415,700
Cash &
Equivalents
$845,889 $1,905,713 $1,963,216 $3,393,216 $3,367,914
NFD -$259,770 -$99,195 $57,877 $2,466,833 $6,047,786
EBITDA $517,545 $1,068,360 $1,640,132 $2,266,597 $3,854,573
Credit rate -0.5 -0.1 0.0 1.1 1.6
Fitch AAA AAA AAA AA A

31. Date of potential shut down
• loss per month
$5,054,500
• loss per day
$168,483
• loss per hour
$7,020
Cash &
Equivalents
$3,367,914,000
Long-term
Debt
$9,415,700,000
Net Cash
available
($6,047,786,000)
Operating
cash flow
per year
($60,654,000)
If no additional support provided

32. Date of potential shut down
Tesla has no survival capacity, and may shut down
each day of operations, if its run out of cash
Main source of cash: investors and shareholders
(Especially Elon Musk)
If no additional support provided

33. Survival strategy of Tesla
• Normalize its production speed. (5000 cars per month)
• Gigafactory
• Accomplish
pre-orders

34. Conclusions
• Tesla is a powerful brand with MC = $51.8B
• Primary goal is to make electro mobile affordable
• Elon Musk (CEO) is an influencer with strong vision and plans.
• In 2017-2018 competition becomes stronger than even before.
• Strengths of Tesla are its brand and innovations in renewable
energy
• Weaknesses are its loss and competition from more powerful brands.
• Tesla has stable financial support despite losses.
• The credit rate of Tesla decreased from AAA to A during 2015-
2017.
• Tesla has large amount of cash, and it burns $7,020 each hour.
• The possible way to overcome the crisis is to start gain profit from
tits operations, which will contribute to the income.

35. Recommendations
• Normalise production speed
• finish the building of Gigafactory
• Continue to innovate in order to overcome the competition
• Plan and develop more charging stations around the world
• Think about the collaboration, strategical alliances or joined
venture with companies, who are also in charge of innovation in the
same field.
• Focus on the BRICS countries and its needs toward green vehicles