ELON MUSK’S BIG BETS

Presented by
Vshruti Joshi(P39075)
Lalit Kumar(P39078)
Nehal Jivabhai Dasa(P39082)
Sonam(P39110)
 SpaceX
Founded in 2002. In 2003, he told a reporter ‘I like to be involved in things
that change the world
By 2006, SpaceX had won contracts to take commercial and NASA satellites into space
despite not yet launching a rocket. Its first three launch attempts ended in failure.
Musk claimed in 2012 to be on track to get a manned spacecraft to Mars in 10-15 years. Invested
$100 million of his own money in SpaceX and nearly lost it all when SpaceX struggled to achieve a
successful test launch of its first rocket.

In May 2012, SpaceX became the first commercial firm to successfully dock a
vehicle with theInternational Space Station (ISS), and later that year it
delivered its first load of cargo to the ISS.
In December 2015, it successfully landed a rocket after launch. Musk saw reusable
rockets as an essential step toward making spaceflight truly affordable. SpaceX
executives estimated that reusing rockets could cut its launch prices by 30%, from
around $61 million to $43 million per launch.
In March 2017, when it successfully launched and landed a previously flown
Falcon 9 rocket .

Amazon founder and CEO Jeff Bezos, the second-richest person on Earth, founded
spaceflight company Blue Origin, which directly competed with SpaceX
On September 1, 2016, a SpaceX rocket exploded on the launch pad at Cape Canaveral. Such
setbacks had a significant financial impact on SpaceX: In 2015, its revenue declined 6% after
multiple years of strong growth, and the company recorded a wide operating loss of $260 million
following multiple
Has great ambitions years of small but positive
for revolutionizing travel onoperating income.
and under the Earth’s
surface.
 The Hyperloop, The Boring Company,
and Neuralink
 A faster and cheaper replacement for high-speed rail.
 Inspired by pneumatic tubes, it would transport passengers at speeds
of more than 700 miles per hour in pods enclosed in underground
steel tubes under near-vacuum conditions.
 A few startups picked up the idea and began developing the
technology. One of them, a firm called Hyperloop One, held a
demonstration in the Nevada desert in the spring of 2016, propelling
a sled one-half mile down a test track at speeds of over 300 miles per
hour. The startup had raised $150 million for the venture through
January 2017.
 Musk tweeted the launch of a Hyperloop-like venture called The
Boring Company, and days after the tweet, he bought the website
BoringCompany.com and staffed a SpaceX engineer to oversee the
new venture.
 Musk planned to be CEO of both new startups.
 Tesla Motors
 2003-Founded by Silicon Velley engineers to produce affordable, mass-market electric car
 2008- Elon Musk joined invested and raised funds as CEO and raised IPO in 2010 which had
growth of 20.8%
 Grand Vision of Elon Musk for Tesla Motors was to create a broader market for affordable
Electrical Vehicles as to the key to sustainable transportation considering disaster of changing
climate
 High cost of electric car technology was a limitation.
 2008- Launched Roadster a high performance high priced car at $110000 price demonstrating
superior performance in spite of being fully electric car
 2012- launched Model S first electric Sedan priced between $70000 to $100000, sales reached
to 100000 in 2016 from 5000 in 2013.
 The Model S was honored as the 2013 Car of theYear by Motor Trend magazine .
 2015- Released SUV model X- sold and delivered 370000 vehicles by march 2017.
Shortly availed self driving feature packages called “Auto Pilot” that offered semi automatic
highway driving which to had concerns of risk remained even after upgradations in software.
 2016 March- Unveiled prototype of its mass market vehicle called Model 3 to be launched in
late 2017 at the price of $35000 , got preorders of 375000 cars in first month.
 In April 2017, Tesla surpassed General Motors to become the most valuable U.S. car maker.
 Gigafactory
Giant Lithium Battery Production factory
Conceptualized in 2013 and laid foundation in late
2014, Nevada
Batteries manufactured at the Gigafactory would be
dedicated to its new stationary energy storage business
Pattern followed- vertical integration
In 2017 expended to production of Model 3 electric
motors and gear boxes
Partnership with Panasonic in the construction and
operation of the factory
 Battery Company
Projected li-ion market growth from $21.billion in 2014 to
over $76 billion in 2020
Shifting demand for li-ion to large-scale energy storage
applications and electric vehicles.
Alternative Battery Technologies:
Fuel cells represented an alternative energy storage
electric vehicles powered by hydrogen fuel cells (FCEVs)
emerging as a competitor in the zero-emission vehicle
category
 Electric Vehicles
Rising oil prices, improvements in battery technology, and
growing concerns about climate change.
Advantages over internal combustion engines
Government encouragement for electric vehicle: tax credits,
HOV lane exemptions, emissions test exemptions, and utility rate
reductions.
EV manufacturers faced unavoidable trade-offs between cost and
range of batteries.
To spur the growth of electric vehicle industry Tesla announced
no patent lawsuits.
 ENERGY STORAGE
 Energy storage for residential, business, and utility use was a major potential
market for battery technology

 To take advantage of the energy storage market, Tesla announced in early 2015
its Tesla Energy suite of battery packs

 Tesla launched Power wall battery pack provided 6.4 kWh of energy storage,
at a price of approximately $3,000

 By end of second quarter of 2015 Tesla reported a sale of $1 billion

 High potential in opportunity to manufacture batteries for various energy

storage solutions motivated Elon Musk to acquire SolarCity
 SOLARCITY
 Founded by Lyndon and Peter Rive in 2006 with Musk as Chairman and a
major financial backer of company
 Positioned itself as a solar energy provider which purchased & Installed Solar
System
 Benefited from the falling price of solar panels
 SolarCity acquired panel maker Silevo in 2014
 Leader in both residential and commercial markets
 Tesla acquired Solarcity in 2016 at a valuation of $2.6 Billion
Financial Data Tesla & SolarCity ($
Millions)
 Conclusion

 Capital investments required at a time when Tesla is still losing money

 Musk and his companies owed some $6 billion in debt to bondholders
and lenders
 Musk was asking Wall Street and shareholders to trust that he could pull
together multiple businesses and join him in making multiple big bets