Tesla 2015 Annual Report Download - page 7

Model X
Our Model X crossover is the first vehicle we intend to develop by leveraging the Model S platform. This unique vehicle has been
designed to offer the space and functionality of a sport utility vehicle while having high performance features such as our fully electric, all-
wheel
drive dual motor system. Model X will seat seven adults and incorporate a unique falcon wing door system for superior access to the second and
third seating rows. We anticipate that the pricing of Model X will be similar to a comparably equipped Model S. We currently intend to begin
customer deliveries of Model X in the third quarter of 2015. After its initial launch in the United States, Model X will be sold in all the markets
where Model S is available including in Asia and Europe.
Model 3
We have also publicly announced our intent to develop a third generation electric vehicle, called Model 3, 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 introduced in 2017.
The Tesla Roadster
Our first vehicle, the Tesla Roadster, is the first high-performance electric sports car. It can accelerate from zero to 60 miles per hour in as
little as 3.7 seconds and has a maximum speed of approximately 120 miles per hour. The Tesla Roadster also has a range of 245 miles on a
single charge, as determined using the United States EPA’s combined two-cycle city/highway test. We have sold approximately 2,500 Tesla
Roadsters to customers in over 30 countries, predominately in North America and Europe. We concluded the production run of the Tesla
Roadster in January 2012.
Stationary Energy Storage Applications
Using the energy management technologies and manufacturing processes developed for our vehicle powertrain systems, we have
developed stationary energy storage products for use in homes, commercial sites and utilities. The applications for these battery systems include
backup power, peak demand reduction, demand response and wholesale electric market services. We began selling our home systems in 2013
and our commercial and utility systems in 2014. We plan to ramp sales of these products in 2015.
Powertrain Development and Sales
In addition to our own vehicles, we also design, develop, manufacture and sell advanced electric vehicle powertrain components to other
automotive manufacturers. We have provided development services and full powertrain systems and components to Daimler for its Smart
fortwo, A-Class, and B-Class electric vehicles and to Toyota for use in its RAV4 EV. We are continuing to supply production parts for the
Daimler B class electric vehicle.
Technology
We believe the core competencies of our company are powertrain engineering, vehicle engineering and innovative manufacturing. Our
core intellectual property is contained within our electric powertrain and the ability to design a vehicle which capitalizes on the uniqueness of an
electric powertrain. Our electric powertrain consists of the following: battery pack, power electronics, motor, gearbox and the control software
which enables the components to operate as a system. We designed each of these major elements for our Tesla Roadster and Model S and plan to
use much of this technology in Model X, Model 3, our future electric vehicles and powertrain components that we build for other manufacturers.
Our powertrain and battery pack have a modular design, enabling future generations of electric vehicles and our stationary storage applications
to incorporate a significant amount of this technology. Further, our powertrain is very compact and contains far fewer moving parts than the
internal combustion powertrain. These features enable us to adapt it for a variety of applications, including our future vehicles and any
powertrain components we build for other manufacturers.
Battery Pack
We design our battery packs to achieve high energy density at a low cost while also maintaining safety, reliability and long life. For
example, we have designed our Model S battery packs to store 85 kilowatt hours of useful energy and offer a warranty of unlimited miles over
eight years. Our proprietary technology includes cooling systems, safety systems, charge balancing systems, battery engineering for vibration
and environmental durability, robotic manufacturing processes, customized motor design and the software and electronics management systems
necessary to manage battery and vehicle performance under demanding real-life driving conditions. We have significant experience and
expertise in the safety and management systems needed to work with lithium-ion cells in the demanding automotive environment. We believe
these advancements have enabled us to produce a battery pack at a low cost per kilowatt-hour.
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