with three auto manufacturers. We have taken into account the revenues Tesla receives from the sale of these credits
into our forecasts for revenue per vehicle sold.
3. AFTER SALES SERVICES – Tesla runs its own charging stations and service centers. Revenues generated from these
services are also bundled into the revenue per vehicle. Tesla is also offering consumers the option of a battery swap for
a nominal fee. The battery swap allows users to eliminate trips to charging stations and this might become an
attractive option for a number of consumers in the future, thus contributing to company revenues.
Mitigating:
4. PRICE COMPETITION – Considering that Tesla will want to maximize volumes with the Gen III, there is a possibility
that it will engage in price wars with competitors, forcing it to decrease pricing, thereby leading to lower revenues.
5. POSSIBILITY OF DISTRIBUTING VEHICLES THROUGH THIRD PARTY DEALERS IN THE FUTURE – As mentioned above,
Tesla currently handles all sales and marketing activities of its vehicles in-house. However, there is a possibility that
once Tesla reaches higher volumes, it may not be able to sustain this retail strategy. A portion of its vehicles may be
distributed through third party dealers, leading to dealer margins which would lower revenues per vehicle sold.
Sources for historical data and explanations can be found on the Trefis.com website (link)
— EV/HEV AS % OF TOTAL PASSENGER VEHICLE MARKET —

See our analysis of EV/HEV as % of Total Passenger Vehicle Market in the Model S division here.

— GEN III MARKET SHARE —

This represents the market share of Gen III as a percentage of the total EV market.

Gen III Market Share (%)

7.5

5.0

2.5

0.0
2011 1 2

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TREFIS ANALYSIS for TESLA MOTORS

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