Tesla 2011 Annual Report Download - page 30

Table of Contents
of these manufacturers have announced plug-in versions of their hybrid vehicles. For example, in December 2010, General Motors introduced
the Chevrolet Volt, which is a plug-in hybrid vehicle that operates purely on electric power for a limited number of miles, at which time an
internal combustion engine engages to recharge the battery.
Moreover, it has been reported that BMW, Daimler, Lexus, Audi, Renault and Volkswagen are also developing electric vehicles. Several
new start-ups have also announced plans to enter the market for performance electric vehicles, although none of these have yet come to market.
Finally, electric vehicles have already been brought to market in China and other foreign countries and we expect a number of those
manufacturers to enter the United States market as well.
Most of our current and potential competitors have significantly greater financial, technical, manufacturing, marketing and other resources
than we do and may be able to devote greater resources to the design, development, manufacturing, distribution, promotion, sale and support of
their products. Virtually all of our competitors have more extensive customer bases and broader customer and industry relationships than we do.
In addition, almost all of these companies have longer operating histories and greater name recognition than we do. Our competitors may be in a
stronger position to respond quickly to new technologies and may be able to design, develop, market and sell their products more effectively. We
believe our exclusive focus on electric vehicles and electric vehicle components, as well as our history of vehicle development and production,
are the basis on which we can compete in the global automotive market in spite of the challenges posed by our competition; however, we have a
limited history of operations.
Intellectual Property
Our success depends, at least in part, on our ability to protect our core technology and intellectual property. To accomplish this, we rely on
a combination of patents, patent applications, trade secrets, including know-how, employee and third party nondisclosure agreements, copyright
laws, trademarks, intellectual property licenses and other contractual rights to establish and protect our proprietary rights in our technology. As
of February 3, 2011, we had 35 issued patents and approximately 280 pending patent applications with the United States Patent and Trademark
Office and internationally in a broad range of areas. Our issued patents start expiring in 2026. We intend to continue to file additional patent
applications with respect to our technology. We do not know whether any of our pending patent applications will result in the issuance of patents
or whether the examination process will require us to narrow our claims. Even if granted, there can be no assurance that these pending patent
applications will provide us with protection.
Employees
As of December 31, 2010, we had 899 full-time employees consisting of 213 in manufacturing, 212 in powertrain research and
development, 121 in sales and marketing, 170 in vehicle design and engineering, 79 in service and 104 in general and administration. Of all of
our employees, 648 are located in our Northern California offices, 106 are located at our Los Angeles facility and 51 are located at our United
Kingdom offices. The other employees are located in other international locations. None of our employees are currently represented by labor
unions or are covered by a collective bargaining agreement with respect to their employment. To date, we have not experienced any work
stoppages, and we consider our relationship with our employees to be good.
Additional Information
We file or furnish periodic reports, including our Annual Reports on Form 10-K, our Quarterly Reports on Form 10-Q and Current reports
on Form 8-K; proxy statements and other information with the SEC. Such reports, proxy statements and other information may be obtained by
visiting the Public Reference Room of the SEC at 100 F Street, NE, Washington, D.C. 20549, by calling the SEC at 1-800-SEC-0330 or by
sending an electronic message to the SEC at [e-mail]. In addition, the SEC maintains a website (www.sec.gov) that contains reports,
proxy and information statements, and other information regarding issuers that file
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