Tesla 2012 Annual Report Download - page 10

Table of Contents
Model X and Future Vehicle Roadmap
We expect that Model S will be manufactured with an adaptable platform architecture and common electric powertrain so that we can use
the platform of Model S to create future electric vehicle models. In particular, by designing our electric powertrain within the chassis to
accommodate different vehicle body styles, we believe that we can save significant time in future vehicle development. In addition, we believe
our strategy of using commercially available battery cells will enable us to leverage improvements in cell chemistries and rapidly introduce
planned vehicles with different range options. However, we may make changes to the design of Model S, including changes that may make it
more difficult to use the Model S platform for future vehicles.
In February 2012, we revealed an early prototype of the Model X crossover as the first vehicle we intend to develop by leveraging the
Model S platform. This unique vehicle has been designed to fill the niche between the roominess of a minivan and the style of an SUV, while
having high performance features such as a dual motor all-wheel drive system. We currently plan to start production of Model X in the fourth
quarter of 2013 and ramp up to significant customer deliveries in early 2014. We anticipate that we will make Model X available with 60kWh
and 85 kWh battery pack options, with pricing of each version similar to those of a comparably equipped Model S. We currently intend to target
an annual production rate of approximately 10,000 -15,000 cars per year from our Tesla Factory.
We have also publicly announced our intent to develop a third generation electric vehicle to be produced at the Tesla Factory. We intend to
offer this vehicle at a lower price point and expect to produce it at higher volumes than our Model S. We expect that this vehicle will be
produced a few years after the introduction of the Model X crossover.
Powertrain Development and Sales
In addition to our own vehicles, we also design, develop, manufacture and sell advanced electric vehicle powertrain components.
In May 2009, we entered into a development agreement with Daimler under which we performed specified research and development
services for the development of a battery pack and charger for Daimler’s Smart fortwo electric drive. All development work related to the
development agreement had been completed as of December 31, 2009. Through December 2011, we had sold over 2,100 battery packs and
chargers for the Smart fortwo electric drive program.
In the first quarter of 2010, Daimler engaged us to assist with the development and production of a battery pack and charger for a pilot fleet
of its A-Class electric vehicles to be introduced in Europe during 2011. A formal agreement for this arrangement was entered into with Daimler
in May 2010. In October 2010, we completed the development of the A-Class battery pack and charger and began shipping production
components for a demonstration fleet in February 2011. Through December 2011, we had sold over 500 battery packs and chargers for the A-
Class EV program.
In the first quarter of 2010, we completed the development and sale of modular battery packs for electric delivery vans for Freightliner
Custom Chassis Corporation (Freightliner), an affiliate of Daimler. Freightliner plans to use these electric vans in a limited number of customer
trials.
In May 2010, we and Toyota announced our intention to cooperate on the development of electric vehicles, and for us to receive Toyota’s
support with sourcing parts and production and engineering expertise for Model S. In July 2010, we entered into an early phase agreement to
develop an electric powertrain for the Toyota RAV4. With an aim by Toyota to market the electric vehicle in the United States in 2012,
prototypes would be made by combining the Toyota RAV4 model with a Tesla electric powertrain. We began developing and delivering
prototypes to Toyota for evaluation in September 2010. In October 2010, we entered into a contract services
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