tesla_financial plan_design4
TRANSCRIPT
Tesla Motors Company
Karen Brady / Samuel Sutanto / Tsien White / Yefta Surya
Gigafactory Economies of Scale
Current Problems With Tesla’s Manufacturing Model
Current Production of Lithium Ion Batteries Is insufficient to meet production demands
WHICH CONSTRAINS DEMAND
The Cost to Produce Lithium Ion Batteries is High
Which Increases the Cost of the Vehicle
Solution
Build a Lithium Battery Factory to . . .
To mass produce batteries in order to . . .
Mass produce cars . . .But not just any factory . . .
It must be a factory as efficient . . .As state of the art as . . .
The Tesla Car
Gigafactory
• Lithium-Ion Battery Factory
5 to 10 Million Square Feet
Powered With Renewable Energies
Battery Production Starts In 2017
Full Production of 500,000 batteries in 2020
Gigafactory Price Tag
$5 Billion45% Tesla 35%
Panasonic1.6 Billionin Convertible
Notes
345
17735
52835
96000
2010 2011 2012 2013
Sales of all Electric and Plug in Hybrid electric cars in the U.S.
Reno, Nevada
The factory must be built with efficiency in mind• Near a lithium mine• Near the Tesla car factory in Fremont, CA• Railroad is available• Near an interstate highway• Where renewable energy can be harnessed• Where high speed internet access is
available• Where the environment is pro-business
Size = Efficiency
Battery Manufacturing
Battery Packaging
Co-Locate Suppliers
Battery Recycling Center
Under One Large Roof
Lithium-Ion Battery Production Cost
60 kWh Battery
85 kWh Battery
48 kWh Battery
Car Price $71,000 $85,000 $35,000
Current Battery Cost
$238 kWh – $278 kWh (avg. $256 kWh)
$15,360(21.63% of total
cost)
$21,760(25.6% of total
cost)
$12,288(35.11% of total
cost)
30% Reduction on Battery Cost
$10,752(15.14% of total
cost)
$15,232(17.92% of total
cost)
$8,602(24.58% of total
cost)
Tesla WACC
• Risk Free Rate: 2.65%• Beta: 1.52• Market Risk Premium: 12%• Rate of Equity = 2.65% * 1.52 (12%)• Rate of Equity = 20.89%
Tesla WACC
• Debt (D): $2.47 Billion• Debt/Equity Ratio: 257.68%• Equity (E): $958,553,244.33 • Debt + Equity (V):
$3,428,553,244.33 • Coupon Rate: 1.50%• Rate of Equity: 20.89%• Tax Rate: 40%
Tesla WACC
Perpetuity Formula
• 30% of cost reduction ($76.80 kWh)• Battery Capacity sample: 60 kWh• Total Cost Savings: $4,608• Quantity: 500,000• Total Cost Savings in 2020, 2021,
2022, 2023, and the following years: $2.304 Billion
• Discount Rate: 15%• Present Value (PV): $15.36 Billion
Net Present Value & Internal Rate of Return
• NPV = $1,640,551,873.20 • IRR = 20.57% • WACC = 9.99%
2015
2016
2017
2018
2019 2020
$(5,000,000,00
0.00) 0 0 0 0 0$15,360,000,000.
00
*NPV and IRR is based on 30% cost savings
Growth Through Batteries
Cars Mass Transit Electronics Energy Storage
Thank You
Questions?