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CRUSH Report for:

Tesla Motors Inc


May 24, 2016

www.avention.com | 1 866 222 4213


United States
Tel: 1 978 318 4300

UK & Europe
Tel: 44 (0)20 7382 8800

Australia
Tel: +61 (0) 2 9044 7868

China, Hong Kong, Taiwan


Tel: +852 8100 9648

Singapore
Tel: +65 62217920

India
Tel: +91 9871046415

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CRUSH Info

Tesla Motors Inc


3500 Deer Creek Rd
Palo Alto, California 94304-1317
USA
Main: 650-681-5000
Fax: 302-655-5049
http://www.teslamotors.com
Annual Revenues $3.2 Billion
Fiscal Year End 2014-12-31
Employees 10,161
Ticker NASDAQ TSLA
Industry Auto and Truck Manufacturers

IT Highlights
Enterprise Applications
AT&T wireless connectivity multi-year agreement
Bunkspeed HyperShot, HyperDrive 3D rendering software
Dassault Systemes Apriso FlexNet enterprise manufacturing execution system (MES)
Dassault Systemes CATIA PLM Express
ENOVIA SmarTeam
LMS Test.Lab NVH Development and Test Systems
Microsoft Exchange 2010
TechniGraphics consulting for CATIA PLM Express implementation
Salesforce.com Service Cloud Console

Data Management & Business Intelligence


IBM SPSS predictive analytics software
Microsoft Access
Microsoft SQL Server 2008, 2012
SAS business intelligence and analytics software

Hardware/OS/Systems Environment
Apple iPhones, iPads
Apple OS X
Blackberry devices
Google Android devices
Google Glass Enterprise Edition
Microsoft Windows 2008, 7
Microsoft Windows Server 2012
Ubuntu mobile software platform
Zebra barcode scanners and printers

Web Services & Application Development


Atlassian JIRA issue and project tracking software

CRUSH Report for Tesla Motors Inc

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CRUSH Report for Tesla Motors Inc

Drupal Web development software


JetBrains TeamCity
knockout.js for JavaScript
Microsoft .NET Framework 4.0
Microsoft ASP.NET MVC 3,4: Razor view engine, test-driven development (TDD), Kendo UI
Microsoft C#
Microsoft Entity Framework (EF)
Microsoft LINQ
Microsoft SharePoint 2010
Microsoft Team Foundation Server (TFS)
Microsoft Transact-SQL (T-SQL)
Microsoft Windows Communication Foundation (WCF)
Object-Oriented Programming (OOP) JavaScript
Salesforce.com Force.com Explorer, Apex, Visualforce

Networking, Management & Security


Altiris deployment software
CentOS network configuration
Chef network configuration management
F5 load balancer
Microsoft Active Directory
Puppet Labs configuration management
Red Hat Linux
ServiceNow IT service management

Other Technologies, Applications & Business Initiatives


AT&T wireless connectivity multi-year agreement
Autodesk Alias Surface design software
Jobsuitors recruitment app
Mentor Graphics Capital Toolset
Microsoft Project Server
Microsoft Visio
Tesla internal ERP system

Technology Business Drivers


Management Change: Chief Information Officer Leaves Company
In April 2016, Tesla's chief information officer. Jay Vijayan, left Tesla to start his own startup company. Vijayan told CIO Journal
that he loved working at Tesla but hed wanted to start his own company for some time. Elon Musk is my favorite CEO, he said,
adding that Musk was supportive of his decision to start a company. Vijayan is not talking about his new company.
As of May 2016, a new CIO at Tesla has not been named.
http://www.marketwatch.com/story/tesla-cio-leaves-to-start-his-own-stealth-startup-2016-04-04
Management Change: EMEA
In April 2016, Tesla Motors hired Willem Haitink to lead sales operations for the Europe, Middle East and Africa business. Haitink
spent the the previous four years as CEO of sportswear firm ONeill following a long stint at Nike. He has expertise in the
European market following serving as a GM of Converse. Hatilink will work out of Teslas European headquarters in Amsterdam.
http://streetwisereport.com/tesla-motors-nasdaqtsla-hires-willem-haitink-to-lead-sales-operations-for-europemiddleeastafrica-business/341885/

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CRUSH Report for Tesla Motors Inc

New Site Opening: Manufacturing Plant in China


In January 2016, Tesla CEO Elon Musk says he hopes to build a Chinese plant making electric cars by mid 2016. The company
already has 15 outlets in seven major Chinese cities, as well as 340 boosters and more than 1,600 destination chargers. The CEO
has not revealed the location of the electric car plant, which will be finalized along with a Chinese maker as partner in mid 2016.
Sinocast Transportation Beat (China), 26-Jan-2016 2016 Acquire Media Corporation. Published by Avention, Inc. February
2016
New Site Opening: Possible Office Expansion in California
According to a December 2015 report in the Wall Street Journal, Teslas rapid expansion and recent hiring spree is causing the
company to outgrow its current office space. The report said Teslas total headcount went from just 899 in 2010 to 14,000 now. It
currently has 1,600 open positions and it plans to add another 4,500 employees in California alone over the next four years.
In order to use space more efficiently, Tesla has moved some of its office and engineering workers to its nearby Fremont factory.
Tesla already has eight different facilities in the San Francisco Bay area, but Tesla CEO Elon Musk has expressed an interest in
building a larger, consolidated headquarters in California soon, according to the report.
The rapid expansion is partly due to increased competition in the electric car market and rising pressure from other tech
companies rumored to be working on their own autonomous cars, a space Tesla may want to get into as well.
Business Insider Australia, 29-Dec-2015 2015 Moreover Technologies. Published by Avention, Inc. December 2015
Hiring: Tesla Posts 1,656 Job Openings
In December 2015, Tesla is planning massive recruitment of people with diverse skills, experiences and background.
Since its initial public offering in 2010, the number of Tesla employees has increased 15 times. By the end of 2014, Tesla had
10,161 full-time employees. This number ballooned to 12,000 workers by June 2015. Presently, the company employs around
14,000 people. This means that the company is building a great team to reach its automotive and electrification goals.
One reason Tesla has been slow to increase its auto sales is the constant loss of talent to Silicon Valley competitor, Apple, Inc.
Apple, reportedly, has its own electric car project in the works for which thousands of people have been hired in a project called
Titan. The recruits come from leading auto companies, including Tesla. As a result, the two companies have been in a
constant tug-of-war to poach the best talent over the past few months.
With the aggressive expansion plans Tesla has set ahead of itself, the company is in dire need to retain its employees. Among
the scheduled projects planned by the EV maker are; the construction of its Gigafactory, production ramp of Model X, mass
production of Model 3 and exploring a large market for its house-powering stationary battery products, namely Powerwall.
Mr Top Step, 9-Dec-2015 2015 Moreover Technologies. Published by Avention, Inc. December 2015
Management Changes: CFO; President, Sales and Service
In November 2015, Tesla appointed Jason Wheeler as its next Chief Financial Officer and Jon McNeill has joined as President of
Global Sales and Service.
Wheeler joins Tesla after 13 years at Google Inc. where he was Vice President of Finance and led Google's global finance
function. Wheeler has an MBA from Harvard Business School and a bachelor's degree in finance from Colorado State University,
where he graduated summa cum laude.
Wheeler will replace Deepak Ahuja, who announced his intention to retire from Tesla earlier this year. Jason will assume his new
role on November 30, 2015, with Ahuja remaining at Tesla for the next few months to ensure a smooth transition.
Jon McNeill is the former CEO of Enservio. In 2013 he was named "Most Admired CEO" in the small/midsize company category
from the Boston Business Journal. Before Enservio, Jon co-founded Sterling Collision Centers. At Sterling, Jon's team reduced
industry repair times by 90 percent (from 18 days to less than 2 days) while simultaneously growing the business at more than
40 percent per year. In 1993, Jon founded First Notice Systems. He is a graduate of Northwestern University.
GlobeNewswire, 1-Aug-2015 2015 Acquire Media Corporation. Published by Avention, Inc. November 2015
Merger/Acquisition: Lithium Mine For Increased Need for Lithium and Energy Storage
In a July 2015 article, Tesla CTO JB Strabel discussed the future of energy storage and PV (photovoltaic modules). He believes
that the energy storage industry is right at the precipice of massive cost declines like PV experienced. The next decade is
going to look very different because all of the demand [for energy storage technology] coming from stationary energy storage

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CRUSH Report for Tesla Motors Inc

and from electric vehicles from many different companies not just Tesla will change the demand curve and slope in a huge
way, he said. Its kind of like the difference between solar used for pocket calculators and satellites VS solar used for buildings.
The demand is orders of magnitude higher and puts it on a different trajectory for cost declines.
To put it in numbers, Straubel believes that the demand for batteries coming from just his company will be something like
35GWh of energy storage by 2020. That is more lithium-ion capacity than existed in the entire world in 2013.
http://www.renewableenergyworld.com/articles/2015/07/tesla-cto-bulk-energy-storage-will-grow-much-faster-than-peopleexpect.html
In September 2015, Tesla Motors signed a deal with Canadian company Pure Energy Minerals in order to develop a lithium mine
in Nevada three-and-a-half hours away from the company's Gigafactory outside of Reno.
As part of the deal, Pure Energy Minerals will provide Tesla with lithium hydroxide for producing the batteries, but it will first
need to complete a preliminary economic assessment to confirm that it can begin mining operations in Clayton Valley, Nevada.
In return, Tesla, will buy a set amount of lithium for five years at a predetermined price under current market rates.
The agreement proves critical to Tesla's "Nevada Lithium Brine Project," as the company needs a reliable amount of lithium to
produce the batteries needed to keep up with demand for its electric cars, according to Business Insider.
A good lithium supply will also help Tesla CEO Elon Musk achieve his goal of building 500,000 vehicles by 2020.
Auto World News,18-Sep-2015 2015 Moreover Technologies. Published by Avention, Inc. September 2015
New Site Opening: Tesla Triples Size of Gigafactory Nevada
In July 2015, Tesla has tripled its land holdings in Nevada, expanding its factory by nearly 2,000 additional acres to build more
batteries and store more backup batteries for their electric cars, according to the Wall Street Journal. A Tesla spokesperson
even told the Journal that a majority of the purchased land could be powered via solar panels. Tesla's new chunks of land are in
addition to the area designated for its $5 billion gigafactory.
This comes after Tesla CEO Elon Musk said that the demand for the Silicon Valley electric car maker's stationary storage
batteries was so high that the company might need to expand upon its already-massive planned space for the gigafactory. That
gigafactory only has its skeleton steel structure and roof erected thus far.
The massive factory will take up 10 million square feet and produce up to 50 gigawatt-hours of battery packs annually, making
that single Reno, Nevada plant able to produce more batteries than all of the world's current factories combined.
The battery factory and the additional purchased land could be worth up to $1.3 billion and employ approximately 6,500 people
when its construction is finished.
http://www.techtimes.com/articles/69117/20150715/tesla-triples-land-grab-nearly-2-000-acres-power-battery.htm
New Site Opening: Data Center is Part of Gigafactory in Nevada
In October 2015, work on Tesla's $5 billion battery plant's interior architecture is underway in full force, as well as a data center
to be located on the Gigafactory site at Tahoe-Reno Industrial Center.
Permits acquired through Storey County show several multimillion-dollar projects kicking off during the summer at the Tesla
Gigafactory site, where construction on the pilot plant is ongoing. The pilot plant will comprise about a fourth of the final
facility's footprint, according to Tesla CEO Elon Musk. The Gigafactory will span 10 million square feet once fully completed,
making it the largest facility of its kind in the world.
http://www.rgj.com/story/life/2015/10/06/tesla-working-gigafactory-interior-plus-data-center-permits-show/73421960/
New Site Opening: Manufacturing Plant in California
In June 2015, Tesla signed a lease to occupy a large manufacturing building a few minutes away from its existing car plant in
Fremont, Calif. At more than 500,000 square feet, the deal for the Page Technology Center at 901 Page Ave. represents Teslas
largest growth spurt in Silicon Valley since buying the former NUMMI plant in 2010.
901 Page, located conveniently down the road from the Tesla Factory, gives us the space to expand our manufacturing and
build more engineering labs as we build up production, Tesla said in an email.
San Jose Business Journal, 11-Jun-2015 2015 Moreover Technologies. Published by Avention, Inc. June 2015

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CRUSH Report for Tesla Motors Inc

Management Change: CFO


Tesla Motors Chief Financial Officer Deepak Ahuja will retire in 2015, but will stay on to help search for a successor at the
company. CEO Elon Musk made the unexpected announcement at the company's annual meeting. Ahuja, a former Ford Motor
Co executive, joined Tesla seven years ago as the first CFO.
His retirement comes as the company is about to enter a period of intensive growth and equally intensive spending. Musk
reiterated the company's anticipation of 50 percent annual growth over the next several years.
The Fiscal Times, 9-Jun-2015 2015 Moreover Technologies. Published by Avention, Inc. June 2015

Business Info
Tesla Motors designs, develops, manufactures and sells high-performance fully electric vehicles and energy storage products. They
have established their own network of vehicle sales and service centers and Supercharger stations globally to accelerate the
widespread adoption of electric vehicles. Their vehicles, electric vehicle engineering expertise, and business model differentiates
them from incumbent automobile manufacturers.
The company currently produces and sells two fully electric vehicles, the Model S sedan and the Model X sport utility vehicle (SUV).
Both vehicles offer exceptional performance, functionality and attractive styling. They commenced deliveries of Model S in June
2012 and as of Dec. 31, 2015 they have delivered over 107,000 new Model S vehicles worldwide. They have continued to improve
Model S by introducing performance, all-wheel drive dual motor, and autopilot options, as well as free over-the-air software
updates.
They commenced customer deliveries of Model X in the third quarter of 2015. This unique vehicle offers exceptional safety, seating
for seven people, all-wheel drive, and their autopilot functionality. They are currently ramping production and deliveries of Model X
in the United States and plan to offer it in Europe and Asia in 2016.
After the Model X, their goal is to introduce the Model 3, a lower priced sedan designed for the mass market. They intend to unveil
Model 3 in the first quarter of 2016 and start production and deliveries in late 2017.
The commercial production of fully electric vehicles that meets consumers range and performance expectations requires
substantial design, engineering, and integration work on almost every system of their vehicles. Their design and vehicle engineering
capabilities, combined with the technical advancements of their powertrain system, have enabled them to design and develop
electric vehicles that they believe overcome the design, styling, and performance issues that have historically limited broad
consumer adoption of electric vehicles. As a result, their customers enjoy several benefits, including:
Long Range and Recharging Flexibility: Their vehicles offer ranges that significantly exceed those of any other commercially
available electric vehicle. In addition, their vehicles incorporate their proprietary on-board charging system, permitting
recharging from almost any available electrical outlet. Their vehicles also offer fast charging capability from their
Supercharger network. They believe the long-range and charging flexibility of their vehicles will help reduce consumer anxiety
over range, alleviate the need for expensive, large-scale charging infrastructure, and differentiate their vehicles as compared
to those of their competitors.
High-Performance Without Compromised Design or Functionality: Their vehicles deliver unparalleled driving experiences with
instantaneous and sustained acceleration through an extended range of speed. In addition, their vehicles provide best in class
storage in the trunk and hood while offering design and performance comparable to, or better than, other premium vehicles.
Energy Efficiency and Cost of Ownership: Their vehicles offer consumers an attractive cost of ownership when compared to
similar internal combustion engine or hybrid electric vehicles. Using only an electric powertrain enables them to create more
energy efficient vehicles that are mechanically simpler than currently available hybrid or internal combustion engine vehicles.
The cost to fuel their vehicles is less compared to internal combustion vehicles. They also expect their electric vehicles will
have lower relative maintenance costs than hybrid, plug-in hybrid, or internal combustion engine vehicles due to fewer
moving parts and the absence of certain components, including oil, oil filters, spark plugs and engine valves. Additionally,
government incentives that are currently available can reduce the cost of ownership even further.

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CRUSH Report for Tesla Motors Inc

Tesla sells their vehicles through their own sales and service network which they are continuing to grow globally. They believe the
benefits they receive from distribution ownership will enable them to improve the overall customer experience, the speed of product
development and the capital efficiency of their business. They are also continuing to build their network of Superchargers in the
United States, Europe and Asia to provide fast charging that enables convenient long distance travel.
In addition to developing their own vehicles, they sell energy storage products. They recently announced the next generation of their
energy storage products, the 7 kWh and 10 kWh Powerwall for residential applications and the 100 kWh Powerpack for commercial
and industrial applications. They began production and deliveries of these products, which they market under the Tesla Energy
brand, in the third quarter of 2015.
They manufacture their products primarily at their facilities in Fremont, California, Lathrop, California, Tilburg, Netherlands and at
their Gigafactory near Reno, Nevada. They are currently using battery packs manufactured at the Gigafactory for their energy
storage products, and will do so for their vehicles in the future.

Quarterly Earnings Calls


Elon Musk, Chairman and CEO - Q1 2016
Tesla is going to be hell-bent on becoming the best manufacturer on earth. Thus far, I think we've done a good job on design and
technology of our products. The Model S and X are generally regarded by critical judges as technologically the most advanced cars
in the world. We've done well in that respect.
The key thing we need to achieve in the future is to also be the leader in manufacturing. We take manufacturing very seriously at
Tesla. It's the thing we need to obviously solve if we are going to scale and scale rapidly and make the cars more affordable. I really
want to send the message out there to the best manufacturing people in the world, we want you to come join our company.
And that is going to be the primary focus of Tesla, how do we get super good at making large complex objects? That's the most
salient point. It's either get wrapped up in a bunch of short-term issues, but I think in terms of what matters in the future, I think
that's the most significant thing.
I'd like to thank Greg Reichow who was our head of production for tremendous contribution over the last five years. Contrary to
media reports, Greg is still at Tesla, he's still with the company, and he's helping with the transition to some new leadership. We
have some I think exciting announcements coming in possibly the next few weeks, in addition to the Tesla management team on the
production side. I feel really, really excited about where things are headed in that direction.
FD (Fair Disclosure) Wire, 4-May-2016 2016 Acquire Media Corporation. Published by Avention, Inc. May 2016
Elon Musk, Chairman and CEO - Q4 2015
Then something I am presently quite excited about is that we expect to be positive cash flow starting next month, and then
continuing on into Q2 and beyond. There's one caveat there. That's including the asset back line. The S back line, that's funding for
cars that are en route to customers. Particularly as our sales to international markets increases, there is more finished goods
inventory on its way to customers. Inclusive of the asset back line, which really I think is most accurately regarded as a slight
decrease in the gross margin of the car by about roughly 0.1 percent, or thereabouts. Apart from that, we were positive cash flow.
Then we are expecting to be profitable for 2016 on a non-GAAP basis. I personally think that that is the correct way to think, to look
at it, because of the way GAAP treats lease accounting. Nonetheless, despite the lease accounting stuff, we anticipate it being
profitable by GAAP's numbers in Q4 of this year.
Jason Wheeler, Chief Financial Officer - Q4 2015
The other big piece here is we had an E&O write-off, excess and obsolescence. This is a result of better production control and
inventory management systems that we put in place. The place is moving really fast and we took some time. Elon talked about this
in Q2 on the earnings call during the shut down, putting better systems in place to track this. We're moving to a place where we're
tracking E&O on a real-time basis, and bringing those facts to the table when we're making decisions. We shouldn't be in this
position again.
Next thing I wanted to talk about real quickly was cash flow. Elon covered this. I think the chart on the face of the shareholder letter
really gets there. We were within striking distance of positive operating cash flows (inaudible). When you add back the leasing

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CRUSH Report for Tesla Motors Inc

proceeds that we get, $209 million, it's a great step-change in the right direction to getting us to net cash flow positive.
Also, CapEx we guided at $500 million last quarter on the call, and we closed out at $411 million for the quarter. That all resulted in
the ending cash balance being at $1.2 billion, which I think showcases our strong improvement in cash management and discipline
in the company.
FD (Fair Disclosure) Wire, 10-Feb-2016 2016 Acquire Media Corporation. Published by Avention, Inc. February 2016
Elon Musk, Chairman and CEO - Q3 2015
Vehicle electrification and autonomous driving are crucial to sustainable and safe personal transportation; plus these technologies
make driving more enjoyable. Recently, Tesla introduced two new groundbreaking innovations that advance driving on these fronts.
In September, we launched our third vehicle, Model X, featuring a combination of safety, performance and convenience that is
unmatched by any other sport utility vehicle (SUV). Model X demonstrates that any vehicle type can be successfully electrified, even
a large SUV that seats seven adults, carries all their gear and can tow up to 5,000 lbs. With such a comprehensive mix of best-in-class
capabilities Model X also proves, just as Model S does, that electric drive leads to better vehicles.
We also recently released a vehicle software update that delivers a range of new Autopilot features. These features relieve drivers of
the most tedious and potentially dangerous aspects of road travel. As a beta release, Autopilot is designed to improve over time,
and marks an important step toward a future of autonomous driving.
Such innovations define new frontiers for the automotive industry, but more importantly, they improve personal transportation for
everyone.
We began production of Tesla Energy products in Q3 at our Fremont factory, with a long-term plan to shift production to the
Gigafactory. Faced with growing demand for Powerpacks and Powerwalls, we have accelerated our plans to expand manufacturing
capacity. In early Q4, we relocated production from Fremont to an automated assembly line at the Gigafactory. This positions us for
strong growth in 2016, but the Gigafactory pull-ahead will push some Tesla Energy Q4 production and deliveries into Q1.
http://files.shareholder.com/downloads/ABEA-4CW8X0/1153029307x0x858516/F50A9FAF-BA73-4263-8E16DE1FAC0BABDF/Q3_15_Shareholder_Letter.pdf
Elon Musk, Chairman and CEO - Q2 2015
Looking ahead to next year, we are highly confident of a steady state production and demand of 1,600 to 1,800 vehicles per week
combined for Model S and Model X. In Q3, we expect to directly lease about the same percentage of cars that we did in Q2. As
always, we will use lease accounting for these cars even in our non-GAAP financial results, as such treatment is consistent with the
cash collected on these transactions.
We expect to sell about $45 million of regulatory credits in Q3, including $30 million from ZEV credit sales. We expect the Model S
average selling price to decline by more than 100 basis points in Q3 as the dollar has continued to strengthen against currencies in
our key markets and our delivery mix shifts towards our lower priced 70 and 70D models. We plan to partially offset this pressure
with lower production costs, and as a result we expect non-GAAP automotive gross margin, excluding ZEV credits, to be just slightly
below the Q2 level.
We are on track to start production of Tesla Energy products this quarter at our Fremont factory, with a plan to ramp up production
in Q4. As a result, we expect Q3 services and other revenue to grow modestly and gross margin to be comparable to Q2. We expect to
further expand Tesla Energy battery module and pack production at the Gigafactory in Q1 2016 on a more automated line, where
construction remains on plan. Our operating leverage is expected to improve, with revenue and gross profit both growing at a faster
rate than operating expenses during the next several quarters. Operating expenses should grow roughly 5-10 percent sequentially in
Q3, and 45-50 percent for the full year as we invest in product development, including Model 3, and expand our sales capability.
We still plan to invest about $1.5 billion in capital expenditures this year as we expand production capacity, purchase Model X
tooling, construct the Gigafactory, and expand our stores, service centers and Supercharger network. In the coming months we are
growing from a single product to a multi-product company. This is a milestone in the maturation of Tesla.
http://files.shareholder.com/downloads/ABEA-4CW8X0/604401701x0x843991/DCDCCFDA-0709-405B-931AB2F48A224CE8/Tesla_Q2_2015_Shareholder_Letter.pdf

Strategy
Teslas principal marketing goals are to:

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generate demand for their vehicles and drive leads to their sales teams;
build long-term brand awareness and manage corporate reputation;
manage their existing customer base to create loyalty and customer referrals, including through their referral programs; and
enable customer input into the product development process.
They market and sell cars directly to consumers through an international network of company-owned stores and galleries. Their
Tesla stores and galleries are highly visible, premium outlets in major metropolitan markets, some of which combine retail sales and
service. They have also found that opening a service center in a new geographic area can increase demand. As a result, they have
complemented their store strategy with sales facilities and personnel in service centers to more rapidly expand their retail footprint.
They refer to these as Service Plus locations. Including all of their stores, galleries, Service Plus and service facilities, they operated
208 locations around the world as of Dec. 31, 2015.
Tesla owns its sales and service network because the traditional franchised distribution and service model is not viable for a
business like theirs. In their company-owned network, their customers deal directly with their own Tesla-employed sales and service
staff, creating a differentiated buying experience from the buying experience consumers have with franchised automobile dealers
and service centers. They believe they will also be able to better control costs of inventory, manage warranty service and pricing,
maintain and strengthen the Tesla brand, and obtain rapid customer feedback.
Tesla Supercharger Network
Tesla is building a network of up to 120 kW fast charging equipment, each called a Tesla Supercharger, throughout North America,
Europe and Asia for fast charging of Tesla vehicles. Their Supercharger network is a strategic corporate initiative designed to remove
a barrier to the broader adoption of electric vehicles caused by the perception of limited vehicle range and to provide fast charging
to enable long-distance travel. The Tesla Supercharger is an industrial grade, high speed charger designed to replenish 170 miles of
range in the battery pack in as little as 30 minutes. Supercharger stations typically have between four to ten Superchargers and are
strategically placed primarily along well-traveled highways to allow Model S and Model X owners to enjoy long distance travel with
convenient, minimal stops. As of Dec. 31, 2015, they had 584 Supercharger stations open in North America, Europe, and Asia. They
are planning to continue to expand the Supercharger network in the United States, Europe and Asia.
The Gigafactory outside of Reno, Nevada
The company is developing the Gigafactory as a facility where they work together with their suppliers to integrate battery material,
cell, module and battery pack production in one location. They plan to use the battery packs manufactured at the Gigafactory for
their vehicles and for their Tesla Energy applications. They broke ground on the Gigafactory in June 2014 and began assembling
their Tesla Energy products in the first portion of the facility in the fourth quarter of 2015.
They currently expect to produce cells at the Gigafactory beginning in 2016 for use initially in their Tesla Energy products and later
for their vehicles. The Gigafactory is currently expected to attain full production capacity in 2020, which is anticipated to be sufficient
for the production of approximately 500,000 vehicles annually as well as for the production of their energy storage products. By that
time, they expect battery pack production capacity to reach 50 GWh. Of this, they expect to build 35 GWh of cell production capacity
at the Gigafactory and purchase 15 GWh of cells from other manufacturers.
They believe that the Gigafactory will allow them to achieve a significant reduction in the cost of their battery packs once they are in
volume production with Model 3. The total capital expenditures associated with the Gigafactory through 2020 are expected to be $4
to $5 billion, of which approximately $2 billion is expected to come from Tesla. Panasonic has agreed to partner with them on the
Gigafactory with investments in production equipment that it will use to manufacture and supply them with battery cells. They have
a supply agreement with Panasonic that, among other things, allows them to purchase a minimum of 1.8 billion lithium-ion battery
cells at preferential prices that they intend to purchase from 2014 through 2017. They have agreed to prepare and provide the land,
buildings and utilities, invest in production equipment for battery module and pack production and be responsible for the overall
management of the Gigafactory.

Business & IT Expenditures


Purchases of property and equipment for Tesla Motors amounted to $1.6 billion, $969.9 million and $264.2 million in 2015, 2014 and
2013, respectively.

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They plan to invest in equipment to support cell production at the Gigafactory, begin installation of Model 3 vehicle production
machinery, open about 80 retail locations and service centers, and energize about 300 new Supercharger locations.
Their operating expenses are expected to grow by about 20 percent in 2016 as compared to 2015, driven primarily by the expansion
of their retail and service centers as well as increases in general and administrative costs to support the growth of the business. They
expect sales, general and administrative expenses to decline over time as a percentage of revenue as they focus on increasing
operational efficiency while continuing to expand their customer and corporate infrastructure. Over time, they also expect total
operating expenses to decrease as a percentage of revenue.

IT Info

Technology Initiatives
A 2014 case study written by digital transformation experts at Capgemini Consulting outline some of the technology initiatives
Tesla has developed. In addition to the internal ERP system developed by Tesla CIO Jay Vijayan, their vehicle interface is built
on Tesla's own operating system and controlled by a touch screen. Future vehicle functionalities can be added through remote
software updates.
Teslas cars are connected wirelessly to a remotely managed central corporate office. Each car generates huge amounts of
data. This is then analyzed, with any required enhancements made remotely to upgrade the cars systems. Upgrades, which are
rolled out every quarter, tend to be about the cars safety parameters or adding new features or hardware changes.
Tesla has installed 160 robots at its assembly line. While typical robots in the automotive industry perform a single function,
Tesla robots perform 4 tasks on the Model S car. For instance, a robot at the Tesla factory can be involved in welding, riveting,
bonding and installing a component, while other robots typically do only one job.
Tesla has created a digital security unit to address the security concerns that result from a car that is connected to the Internet.
The unit is even recruiting a dedicated team of hackers who help identify potential bugs within the system.
Partnerships play a key role in Teslas game plan. These include partnerships with telecom operators, content providers and
ecommerce platforms among others. For instance, Tesla has partnered with AT&T in the U.S. and Telefonica and TeliaSonera in
Europe to provide Machine-to-Machine connectivity for its Model S vehicle. The partnership is aimed at enabling connectivity
for Teslas infotainment telematics, the cars two-way vehicle communications and remote vehicle diagnostics.
https://www.capgemini-consulting.com/resource-file-access/resource/pdf/tesla_motors.pdf

AT&T Wireless Connectivity Multi-Year Agreement


Product manufacturers and telecommunications companies are entering into long-term agreements to cement relationships
during the early stages of the Internet of Things (IoT). In January 2014, Tesla Motors and AT&T entered into an exclusive, multiyear agreement to enable current and future Tesla vehicles in North America with high speed wireless connectivity.
As one of the most technologically advanced vehicles on the road, Tesla is guaranteeing it stays ahead of the curb by ensuring
its drivers will be able to access infotainment features such as Internet radio, Web browsing, live traffic, weather and navigation
accessed through the 17-inch touchscreen. Additionally, the automaker will be able to use AT&T connectivity for remote engine
diagnostics and telematics.
As the first company to enter the market with propriety global SIM platform, AT&T was able to provide automotive, consumer
and M2M equipment makers a reliable communications solution form a single carrier, eliminating compatibility issues and
simplifying the process of connecting device.
http://machine-to-machine-solutions.tmcnet.com/topics/machine-to-machine-solutions/articles/365718-tesla-selects-attconnect-its-vehicles-with-multi.htm

Tesla Builds Internal ERP System


When Tesla Motors needed to improve the backend software that runs its business, CEO Elon Musk decided not to upgrade the
companys software from SAP. Instead, he told CIO Jay Vijayan to build it himself.
Initially, I was very skeptical, said Vijayan, but in the end said Musk was right, adding that the new system gives his company

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CRUSH Report for Tesla Motors Inc

the speed and agility it needs. His team built it in just four months.
Tesla was facing delivery delays of the all-electric Model S which it introduced on June 22, 2012. At the same time, Vijayans
team of about 25 software engineers was working hard to build a system that could support ramped up production. The
improved information technology systems are important for managing high volume production of the Model S, according to
company filings. The system went live in July 2012.
Building an ERP system in house is very challenging. You can shoot yourself in the foot if you dont know what youre doing,
said Vijayan. You need the right team, he said.
Yet, Vijayan was in a tough spot. It can take more than a year and millions of dollars to roll out SAP software because of all the
integration required. Tesla didnt have the time needed to undertake such a project. By creating a custom software project, he
was able to get it up and running quickly, partially because it didnt need integration of disparate applications. Because Musk
made a clear decision, it also helped Vijayan get immediate cooperation from business leaders.
Yet, there will likely be challenges ahead as Tesla grows. Building and running a lightweight enterprise resource planning
system can be done when a company is relatively small but there could be problems on a large scale. Im super confident that
its going to be able to scale very well, said Vijayan. Its now one of the best systems we have. (Article dated November 2013.)
http://blogs.wsj.com/cio/2013/11/01/how-elon-musk-approaches-it-at-tesla/

Autodesk Alias Surface Design Software


Tesla Motor is using Autodesk industrial design software to reinvent its electric cars, creating high-quality designs more quickly
and efficiently. Paul Lomangino, engineering tools manager at Tesla wanted to change the perception that electric cars are
slow and unattractive. We wanted people to be confident that this electric car would be fast, enjoyable, and functional, and
would take away problems rather than create new ones. At the same time, we didnt want to overwhelm them with too many
changes. The Model S is still meant to be fun and exciting, but it is also meant to broaden the audience through increased
functionality and lower pricing," he said.
"We intentionally maintained a lot of the traditional automotive shape and cues in our exterior design," said Franz von
Holzhausen, Chief Designer at Tesla Motors. "It was crucial to establish the positive qualities of the design while building
customer confidence, and we had to do it quickly."
The companys design and engineering process was significantly streamlined through the use of Alias Surface: "Autodesk Alias
Surface software is the best automotive design tool, bar none," says von Holzhausen. "There is simply no other tool that comes
close to Alias for visualization, rendering, surfacing, or just drawing. I use Alias to draft lines rather than using pen and paper,
and also to replace the traditional tape drawings. I dont know what Id do without it."
The team uses a combination of rapid prototypes designed in Alias and computer numerical controlled (CNC) milled clay
models to perfect designs. (Case study dated August 2013.)
http://images.autodesk.com/adsk/files/Tesla_Motors_Customer_Story.pdf

Mentor Graphics Capital Toolset


In February 2013 Tesla has standardized on the Mentor Graphics Capital toolset for 12-volt electrical systems design. After
evaluating alternative solutions, Tesla concluded that the Capital toolset matched the two key selection criteria: strong
electrical system configuration control, and a well-established base within leading automotive wire harness suppliers.
As production volumes grew, it became important to ensure robust, vehicle-specific data exchange with Teslas wire harness
suppliers. The Capital toolset is a powerful electrical systems software environment spanning vehicle architecture, systems
design and integration, service documentation creation, and wire harness manufacturing tools. Configuration management is a
core strength of the Capital toolset, helping ensure that delivered harnesses exactly match the feature set of each individual
vehicle.
Model S has very advanced electrical systems with tremendous configuration complexity. It has been vital, during our ramp up
to full production, that the logistical integration and effective sharing of data with our suppliers was seamless, said Paul
Lomangino, director of engineering applications, Tesla Motors. Capital software was able to overcome the challenges of
configuration management and data exchange with our key suppliers."
http://www.mentor.com/company/news/tesla-motors-boosts-production-capabilities-with-mentor-graphics-electrical-designsoftware

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CRUSH Report for Tesla Motors Inc

LMS Test.Lab NVH Development and Test Systems


In December 2010, Tesla Motors selected LMS as its provider of choice for NVH development and test systems. By selecting the
flexible and versatile LMS Test.Lab system for its state-of-the-art lab and testing site in Palo Alto, Calif., this innovative car
maker is setting the standard for electric vehicles.
LMS is setting the standard for automotive NVH engineering measurement systems. Our growing team required a cost
effective, flexible and expandable turn-key NVH system and LMS delivered. We are using LMS Test.Lab in all aspects of the NVH
development of Model S, stated Roger Evans, former manager of NVH Engineering at Tesla Motors.
At the core of Tesla Motors is the belief that an electric car offers tangible advantages to the discerning customer,
commented Peter Rawlinson, former vice president of engineering with Tesla Motors. We are developing Model S to deliver a
refined driving experience and LMS Test.Lab delivers the breadth of test capability our NVH engineering team needs.
http://www.plm.automation.siemens.com/se_se/about_us/newsroom/press/press_release.cfm?Component=221321&Compon
entTemplate=822

Dassault Systemes Apriso FlexNet Enterprise Manufacturing Execution System


In September 2010, Tesla Motors selected Apriso FlexNet, a provider of software solutions for sustained manufacturing
operational excellence, as its enterprise manufacturing execution system for advanced lithium-ion battery and powertrain
components manufacturing, and assembly of its Model S sedan.
Apriso's FlexNet will provide Tesla a manufacturing platform for visibility and control of its manufacturing operations, helping
Tesla to remain agile through changes in technology and market demand.
Jim Dunlay, vice president of engineering and manufacturing for Tesla Motors, said: "Tesla is committed to delivering
exceptionally well designed and engineered products. Built to the highest quality standards, Tesla aims to be the benchmark
for all electric vehicles. As we continue to drive new innovations and expand operations, Apriso's robust manufacturing
platform will give us the flexibility we need to rapidly deploy new features and technologies into our manufacturing
processes."
http://www.msptoday.com/news/2010/09/13/5004593.htm

Bunkspeed HyperShot, HyperDrive 3D Rendering Software


In February 2009, Tesla Motors used HyperShot and HyperDrive 3D rendering software from Bunkspeed to create the imagery
for the virtual launch of the Tesla Roadster Sports Edition at the Detroit Auto Show.
"The Bunkspeed tools integrate seamlessly within Tesla's workflow, said Tesla chief designer Franz von Holzhausen. We
make quick decisions on digital models and want to carry the use and interaction with digital models for interior and exterior
work through the entire design process."
http://electronicdesign.com/automotive/tesla-selects-bunkspeed-software-3d-rendering

Dassaut Systemes CATIA PLM Express; ENOVIA SmarTeam Data Replication


In November 2007, Tesla selected Dassault Systmes CATIA PLM Express as its product development solution. In addition, Tesla
has expanded the data management capabilities found in CATIA PLM Express and will deploy ENOVIA SmarTeams multi-site
data replication solution between its engineering facilities in San Carlos, Calif. and Rochester Hills, Mich.
For the development of its next generation electric vehicle, a 4-door performance sedan, Tesla is rolling out Dassault Systmes
CATIA PLM Express.
As a growing company, we saw the need for a comprehensive solution that supports the entire vehicle engineering process
and is scalable to accommodate our needs now as well as in the future, said Tesla Motors Paul Lomangino. Additionally, we
needed a product data management tool that takes advantage of the native depth and richness of the engineering data, while
enabling effective collaboration between locations and with our suppliers. CATIA PLM Express, which includes ENOVIA
SmarTeam and digital mockup capabilities, provides us cutting edge technology and capability in an unbeatable package.
Implementation and training for Tesla is provided by DS channel partner TechniGraphics. Phase one implementation,
consisting of 30 seats, was completed at the end of 2006. An additional 15 seats were added in early 2007 with another 20-seat
expansion expected by the end of this year. In the next phase Tesla will expand the scope of its implementation to cover a
multi-site design-to-manufacture scenario, incorporating engineering data integration with Teslas ERP system.
http://www.evworld.com/news.cfm?newsid=16655

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CRUSH Report for Tesla Motors Inc

Google Glass Enterprise Edition


According to a March 2016 report from electric auto news site Electrek, Tesla is using the new Google Glass Enterprise Edition
headsets at its Fremont, Calif. factory. The report joins a few dots to conclude that Tesla is using Glass to help workers at its
factory. APX Labs, a company that designs software for smart glasses, lists Tesla as one of its main customers. Tesla may be
using Google Glass as a glorified hands-free inventory management system for workers on the shop floor.
http://gizmodo.com/report-tesla-is-using-google-glass-to-build-cars-bette-1766279295

Data Center Info


Tesla Data Center in Nevada
In October 2015, work on Tesla's $5 billion battery plant's interior architecture is underway in full force, as well as a data center to be
located on the Gigafactory site at Tahoe-Reno Industrial Center.
Permits acquired through Storey County show several multimillion-dollar projects kicking off during the summer at the Tesla
Gigafactory site, where construction on the pilot plant is ongoing. The pilot plant will comprise about a fourth of the final facility's
footprint, according to Tesla CEO Elon Musk. The Gigafactory will span 10 million square feet once fully completed, making it the
largest facility of its kind in the world.
http://www.rgj.com/story/life/2015/10/06/tesla-working-gigafactory-interior-plus-data-center-permits-show/73421960/

Project Insights
Project: Salesforce Application Development
Project lead: Salesforce Developer
Location: Amsterdam, The Netherlands
Time frame: 2015
Description: Salesforce developers and support specialists are working with European sales, service and delivery teams to create
reports and dashboards using Salesforce.com Force.com development tools.
The team is using Force.com Apex and Visualforce as well as Explorer and the Service Cloud Console.
Project: Desktop Support
Project lead: Desktop Support Technician
Location: Tokyo, Japan
Time frame: 2015
Description: Desktop support technicians are tasked with troubleshooting and resolving endpoint issues and support for Tesla's
global IT infrastructure. The support team manages Microsoft Windows desktop operating systems. They are using Microsoft Active
Directory and Microsoft Exchange 2007 and 2010, in addition to Windows servers.
They team also support PDAs including Blackberry, Droid, iPhones and iPad. They use Altiris deployment software for imaging,
packaging and scripting.
Project: Marketing Intelligence Project
Project lead: Marketing Intern
Location: New York, N.Y.
Time frame: 2015
Description: Interns integrated SAS, Microsoft Excel, and SQL to analyze a large dataset to identify investment opportunities. They
applied marketing metrics and models to conduct performance analyses, and designed and implemented a dashboard in order to
view data.
The team performed a geo-demographic analysis of Pottery Barn at a postal zip code level and conducted cluster analysis using IBM
SPSS predictive analyltics software, and the ANOVA (analysis of variance) t-test to analyze a transactional dataset that contains
227,000 transactions and 100,000 customers. The test identified the most profitable customer segment with their zip codes.
Project: Automation Tools for Manufacturing Operations
Project lead: Systems Analyst, Assembly Operations

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CRUSH Report for Tesla Motors Inc

Location: Fremont, Calif.


Time frame: 2014
Description: The shop floor automation and production planning teams worked together to ensure that manufacturing software
increased key metrics such as efficient custom builds with right parts just-in-time (JIT) or just-in-sequence (JIS) scheduling,
complete build genealogy for assessing suppliers, costing, and managing recalls.
They implemented solutions such as the Apriso Manufacturing Execution System (MES), shop floor data collection (SFDC), Zebra
barcode scanners, Microsoft Access and Vision, and ), and programmable logic controllers (PLCs).
Project: Warp Logistics
Project lead: Senior .NET Developer
Location: Palo Alto, Calif.
Time frame: 2014
Description: Warp Logistics is internal Web-based application for Tesla Motors that maintain shipment and carrier details. The
application is integrated with FedEx Web services for shipment.
The software and technology used for the project include Microsoft .NET Framework 4.0, ASP.NET MVC 3 and MVC 4, ASP.NET Razor
view engine, C#, Entity Framework, SQL Server 2008 R2, LINQ, test-driven development (TDD), Transact-SQL (TSQL), Visual Studio
2010, Cascading Style Sheets (CSS), JQuery, Windows Communication Foundation (WCF), Team Foundation Server (TFS), JIRA,
JetBrains TeamCity, and SharePoint 2010.
Project: Website Redesign; SQL Server Upgrade
Project lead: Business Analyst
Location: Palo Alto, Calif.
Time frame: 2014
Description: Business analysts are managing a redesign of the TeslaMotors.com website and the Drupal version 6 to 7 migration.
They also upgraded Microsoft SQL Server 2008 to 2012. The project team uses Agile scrum methodology for project management
and JIRA for project tracking.
Project: Dealer Management System
Project lead: Lead Software Developer
Location: Fremont, Calif.
Time frame: 2012-2014
Description: Developers built from scratch a Dealership Management System, which interacts with Teslas ERP database. The
systems handles more than 800 users in five different countries.
The tools used for the project include object-oriented programming (OOP) JavaScript, knockout.js, Kendo, Microsoft ASP.NET MVC
Web development, LINQ, Entity Framework (EF) and SQL.

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CRUSH Report for Tesla Motors Inc

Contacts
First Name

Last Name

Title

Phone

Email

Functional Area

Jeff

Evanson

VP, Global Investor Relations

jeff@teslamotors.com

Corporate: Finance/Legal

Todd

Maron

General Counsel

tmaron@teslamotors.com

Corporate: Finance/Legal

Lynn

Miller

Associate General Counsel

lynn@teslamotors.com

Corporate: Finance/Legal

Ken

Morgan

Director, Business Development and Government Affairs

ken@teslamotors.com

Corporate: Finance/Legal

Sunaina

Seelam

Manager, Financial Planning and Analysis

sseelam@teslamotors.com

Corporate: Finance/Legal

Mike

Taylor

VP, Finance

Corporate: Finance/Legal

Jason

Wheeler

Chief Financial Officer

Corporate: Finance/Legal

Jesse

Ahluwalia

Senior Applications Developer

Drew

Baglino

Director, Powertrain Systems Architecture, Modeling, and Controls

Jim

Dunlay

VP, Powertrain Hardware Engineering

Ganesh

Iyer

VP, IT Applications Development and Delivery - Sales, Marketing & Service

ganesh@teslamotors.com

Technology: General

Justin

James

Senior Applications Developer

justin@teslamotors.com

Technology: General

Satish

Jeyachandran

Director, Hardware Engineering

satish@teslamotors.com

Technology: General

Kurt

Kelty

Director, Battery Technology

Paul

Lomangino

Director, Engineering Applications, Tesla Motors

Oscar

Moncada

Director, Global Information Technology

Elon

Musk

Marc
Jeffrey

Technology: General
650-413-4078

drew@teslamotors.com

Technology: General
Technology: General

650-380-2996

Technology: General
paul.lomangino@teslamotors.com

Technology: General

oscar@teslamotors.com

Technology: General

Chairman, Chief Executive Officer and Product Architect

elon@teslamotors.com

Technology: General

Shi

Director, Applications Development

marc@teslamotors.com

Technology: General

Straubel

Chief Technology Officer

jb.straubel@teslamotors.com

Technology: General

Dorian

West

Director, Powertrain Hardware Engineering

650-681-5305

dorian@teslamotors.com

Technology: General

Ron

Cuadro

Head of Staffing

650-681-5436

ronald@teslamotors.com

Corporate:
HR/Administration

Arnnon

Geshuri

VP, Human Resources

ageshuri@teslamotors.com

Corporate:
HR/Administration

Beth

Loeb Davies

Director, Training Programs

Paul

Smicker

Senior Manager, Network Services

smicker@teslamotors.com

Technology: Network

Rik

Avalos

Human Resources Manager

650-681-5012

rik@teslamotors.com

Corporate: Operations

Cory

Beck

Systems Administrator

650-681-6811

cory@teslamotors.com

Corporate: Operations

Peter

Carlsson

VP, Supply Chain

650-681-6417

pcarlsson@teslamotors.com

Corporate: Operations

Doug

Field

VP, Vehicle Programs

doug@teslamotors.com

Corporate: Operations

Matt

Gruss

Manager, Vehicle Engineering

Willem

Haitink

VP, EMEA

Rich

Heley

VP, Product Excellence

rich@teslamotors.com

Corporate: Operations

Nick

Kalayjian

Director, Power Electronics

nick@teslamotors.com

Corporate: Operations

Roy

Kimber

Logistics Manager

rkimber@teslamotors.com

Corporate: Operations

Justin

Kraft

Master Manufacturing Technician and Lead Technician

justin@teslamotors.com

Corporate: Operations

Cindy

Nicola

VP, Global Recruiting

cindy@teslamotors.com

Corporate: Operations

Don

Olechowski

Manager, Wire Harness

thom@teslamotors.com

Corporate: Operations

Gilbert

Passin

VP, OEM and Re-Manufacturing

gilbert@teslamotors.com

Corporate: Operations

Chris

Porritt

VP, Vehicle Engineering

Corporate: Operations

Greg

Reichow

VP, Production

Corporate: Operations

Franz

Von Holzhausen

Chief Designer

David

Waxman

Strategic Partnerships and Programs

Tom

Zhu

President, Tesla China

Colette

Bridgman

Director, Global Marketing

colette@teslamotors.com

Corporate:
Sales/Marketing

Kristin

Finkelstein

Senior Manager, Marketing

kfinkelstein@teslamotors.com

Corporate:
Sales/Marketing

Jerome

Guillen

VP, Worldwide Sales and Service

jerome.guillen@teslamotors.com

Corporate:
Sales/Marketing

Jon

McNeill

President - Global Sales and Service

650-681-6813

Corporate:
HR/Administration

Corporate: Operations
Corporate: Operations

650-921-7946

Corporate: Operations
david@teslamotors.com

Corporate: Operations
Corporate: Operations

Corporate:
Sales/Marketing

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CRUSH Report for Tesla Motors Inc

Diarmuid

O'Connell

VP, Business Development

Corporate:
Sales/Marketing

Ganesh

Srivats

VP, North America Sales

Corporate:
Sales/Marketing

Greg

Slettvet

Manager of Security/Fire/Risk Management

greg@teslamotors.com

Technology: Security

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Org Charts
Organizational Charts can be found at the end of this CRUSH Report

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CRUSH Report for Tesla Motors Inc