Archit Lohokare (archit_lohokare@mba.berkeley.

edu)
Sam Kanakamedala (sam_kanakamedala@mba.berkeley.edu)
Shone Tran (shone_tran@mba.berkeley.edu)
1. WHY THE CAR?

2. WHY ACQUIRE TESLA?


Connectivity Stops At The Car

Car Buying Experience Is Out-Of-Touch
Car still “Like New”
New” Some
enthusiasts willing to pay
for custom retrofit to
upgrade technology
t=0 t=10 yrs

Initial car purchase: Car Mid-

Mid-Life Crisis:
Consumer forced to Feeble attempts at
make tough, expensive catching up with external
decision on integration devices
 Source: ABI Research
The Telematics market is projected to:
• generate total revenue of $38.3 billion in 2011
• grow from 37 million users in 2010 to more than 211 million in 2015
Driver Activities Avg % Passenger Activities Avg %
Navigation 40 Internet 71
E-mail 26 E-mail 59
Contacts 25 Contacts 49
Weather 24 Weather 48
Internet 23 Camera 45
Location search 20 Navigation 44
Listen to audio 18 Instant messenger 43
Traffic 18 Social networking 42
Instant messenger 17 Calendar 40
Camera 16 Location search 37
Calendar 12 Play games 36
Social Networking 12 Listen to audio 28
Watch video 6 Traffic 28
Play games 6 Watch video 25
eBooks 4 eBooks 15
Source: Consumer Electronics Association
Source: Consumer Electronics Association
 Location based iAds

App Store/Local
iOS devices & Apps/Electric Vehicle
dashboard Management Apps
system

ITunes in the
Driver-Safe
Cloud/Internet Radio communication Siri-VR
based PA

AppleTV, Games
Bay Area Start-up DNA Growth Market Product & Technology
Culture Fit Electric/Plug-in hybrids Fit

Strategic Partnerships Control over

w/Daimler, Toyota, platform/ecosystem;
Panasonic Redefine the car
experience

Elon Musk, Tesla CEO: “We’re closer to Apple and
Google than to we are to GM or Ford.”

Lifestyle redefining consumer technology company

Bay Area start-up with disruptive technology in an

existing market

Strong industrial design, marketing, entrepreneurial

teams

George Blankenship: Using Apple Retail experience at

Tesla
 Source: IDC

• By 2015 >2.7 million PEVs on the road worldwide
market in excess of $81B
• Worldwide EV market could be upwards of $300B by 2020
• Electric vehicles will represent 18% of annual car sales by 2020
• Government-sponsored incentives implemented worldwide

Fragmented telematics and infotainment
market with inconsistent and unintuitive user
experience

Apple - history of revolutionizing user

experience and supply chain leveraging
platform control

Acquiring Tesla gives Apple control over the

platform, ecosystem

eRAV4, Roadster, Model S, Smart, more
vehicles to roll out in the coming years

Apple can leverage partnerships to drive its
ecosystem into the automobile market
 Source: Frost & Sullivan

Electric vehicles are the ideal platform that can take advantage
of the Apple ecosystem to reinvent the in-car experience