Model S An Introductionpart 1

MS-101a

This course is presented as part of Evannex Universitya free, open learning environment that presents concise, video-based mini-courses for those who have interest in electric vehicles (EVs)

There are EVs and then theres The Tesla Model S represents a significant automotive achievementSuperior to other BEV and PHEV in virtually every categorylooks, interior volume, interior technologydrag coefficient, range, performanceSuperior to other comparable premium ICE vehicles in almost every categoryDozens of awards, thousands of unqualified rave reviews

Throughout the EV Curriculum track, we talked about EVs of all kinds. BEV city cars like the Nissan Leaf and the Ford Focus Electric, and plug-in hybrids, like the Chevy Volt and the Prius plug-in. But one EVa BEV to be preciserules the EV world. That car is the Tesla Model S.

>> The Tesla Model S represents a significant automotive achievement>> Superior to other BEVs and PHEVs in virtually every category>> looks, interior volume, interior technology including a stunning touch screen display that replaces almost all switches and buttons>> an exterior design that has one of the lowest drag coefficients in the industry, the most range of any BEV, and performance that is, well, there a performance setting in the P85D version that is called insane (and theyre not joking)>> interestingly, its also superior to every other comparable premium ICE vehicle in almost every category>> It has received dozens of awards including Motor Trend Car of the Year in 2013, and thousands of unqualified rave reviews

Ill admit, its hard for me to be objective, because I own a Model S. Thats an early picture of my car on the right of your screenvin#184, right after I got it in 2012. It is, without any qualification, the best car Ive ever owned.

Tesla MotorsModest beginning in 2003In 2004, Elon Musk invested $6M in Tesla Motors and decided to take the company in a new directionhe would change the future of automobilesan upstart in a staid industry Muskthe visionaryhe was told he couldnt get it donegoals werent achievablehis strategy would lead to ruinand profitabilitylaughable

So how did a car that almost everyone admires come about. >> Tesla Motors began in 2003, and interestingly, it began without it current leader and visionary, Elon Musk. >> The company was struggling to survive when in 2004, Musk invested $6M in Tesla Motors and decided to take the company in a new direction>> Must, known for brash predictions, stated that he would change the future of automobiles>> immediately Musk and Tesla Motors became an upstart in a staid industry>> the old line companies figuratively snickered and told anyone who would listen that he couldn't get it done, that>> his goals werent achievable>> his strategy would lead to ruin>> and profitabilitylaughable!So much for conventional wisdom.

Awards

After its launch in late 2012, the Tesla Model S received dozens of awards including Motor Trend Car of the Year in 2013. Weve prepared the infographic you see on your screen summarizing some of these.

Pause this video for a moment to take a look. Its really quite impressive.

For example,

TopGear deemed the Model S the most important car theyve every testedConsumer Reports gave it rave reviews with a rating of 99/100The NHTSA gave it the best safety rating of any car ever testedC/Net awarded the Model S Tech Car of the Year

the list is long

The Beginning a top down strategybuild a high-end, high performance sports car in low volumethe Roadsterbuild a high-end, high performance sedan in mid-volumeThe Model SBuild variants of the Model Sdual motor Model S, Model X Build mid-level, affordable carthe Model 3

Because Musk conceived Tesla as an EV company, he wasnt hesitant about his approach to the market. He went all in,>> top down. He figured, correctly it turns out, the he needed to erase the preconceived notions about EVsthat they were little toys, not intended for serious car enthusiasts. First, he decided to:>> build a high-end, high performance sports car in low volumethe Roadster. It generated lots of press and Tesla was recognized as a player in the exotic car world.Next, he would build>> a premium, high performance sedan in mid-volumeThe Model Swith the intent of competing with the best luxury cars in the world. Following the success of the Model S, he would offer >> variants of the Model Sdual motor Model S, Model Xan SUV/cross-over vehicleand finally, once the brand was well-established >> he would build mid-level, affordable carthe Model 3The first three elements of the strategy are in place, and the last will be completed in the 2017 - 2018 timeframe.

The Businesssells its own vehicles on-line and shows those vehicles in company storesestablishes regional service centersthreatens the existing ordersells electric power train components to other automobile companiespatents available to others

Like most other things about Tesla Motors, its business model is also unique. Almost three years into its production run for the Model S, the company has spent zero advertising dollarszero, and yet, it sells over 3000+ premium vehicles each month.>> It uses an on-line sales approach, and shows the Model S in company stores that are located in large upscale malls.>> it has established regional service centers for those times when the Model S needs serviceAs a consequence, the company>> threatens the existing auto dealership model, and has experienced significant push-back from many automobile dealer associations. We talk about this in a EVU mini-course dedicated to the topic later in the Model S track.In addition to its retail operations, Tesla Motors also >> sells electric power train components to other automobile companies>> and has made it many patents available for use by its competitors

In the next part of this EVU mini-course, well examine how the Model S is made and where the company that makes it is going.

a free study guide for all EVU mini-courses is available for download from our website For a complete list of mini-courses and the study guide, visit: www.evannex.com

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