Gen III
The most important drivers for the Gen III business are:
• Revenue per Unit of Gen III Sold
• EV/HEV as % of Total Passenger Vehicle Market
• Gen III Market Share
• Total Passenger Vehicle Market Size
• Gen III Gross Profit Margin
— REVENUE PER UNIT OF GEN III SOLD —

This represents the revenue Tesla receives per unit of Gen III sold.

Revenue per Unit of Gen III Sold (K $)

50
40
30
20
10
0
2011 1 2

13

14

15

16

17

18

19

20

21

22

Tesla will begin sales of the Gen III in 2017. Trefis expects the company to receive around $45,000 of revenue per unit sold
at the time of launch. Thereafter, the figure should witness a gradual rise. By the end of our forecast period, we expect the
price commanded to increase to around $50,000.
This will include the revenues recorded due to the sale of ZEV credits, earned by the automaker through the sale of
electric vehicles. In addition, the figure also includes the revenues earned through after sales service.
Forecast Rationale
Supporting:
1. TESLA HANDLES SALES AND MARKETING OF ITS VEHICLES IN-HOUSE – Tesla has set up a number of retail outlets in
the US and abroad, and plans to handle sales and marketing of all its vehicles in-house. As a result, it does not have
any payment obligations towards third party dealers.
2. ZEV CREDITS – As per the laws of a number of states in the US, alternative fuel vehicle manufacturers, such as Tesla,
receive ZEV (Zero Emission Vehicle) credits for each vehicle sold. Tesla then sells excess credits to other auto
manufacturers, who purchase the credits to meet regulatory requirements. Tesla has entered into such agreements

TREFIS ANALYSIS for TESLA MOTORS

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