Tesla 2016 Annual Report Download - page 13
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Please find page 13 of the 2016 Tesla annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.·productprice;and
·manufacturingefficiency.
Webelievethatourvehiclescompeteinthemarketbothbasedontheirtraditionalsegmentclassificationaswellasbasedontheirpropulsiontechnology.
Forexample,ModelScompetesprimarilyintheextremelycompetitivepremiumsedanmarketwithinternalcombustionvehiclesfrommoreestablished
automobilemanufacturers,includingAudi,BMW,LexusandMercedes.Ourvehiclesalsocompetewithvehiclespropelledbyalternativefuels,principally
electricity.
Manyestablishedandnewautomobilemanufacturershaveenteredorhaveannouncedplanstoenterthealternativefuelvehiclemarket.Overall,webelieve
theseannouncementsandvehicleintroductionspromotethedevelopmentofthealternativefuelvehiclemarketbyhighlightingtheattractivenessofalternativefuel
vehicles,particularlythosefueledbyelectricity,relativetotheinternalcombustionvehicle.BMW,Daimler,Nissan,Fiat,FordandMitsubishi,amongothers,have
electricvehiclesavailabletoday.Moreover,Porsche,Lexus,Audi,VolkswagenandVolvo,aswellasanumberofprospectiveautomobilemanufacturers,arealso
developingelectricvehicles.ElectricvehicleshavealsoalreadybeenbroughttomarketinChinaandotherforeigncountriesandweexpectanumberofthose
manufacturerstoentertheUnitedStatesmarketaswell.Inaddition,severalmanufacturers,includingGeneralMotors,Toyota,Ford,andHonda,areeachselling
hybridvehicles,andcertainofthesemanufacturershaveannouncedplug-inversionsoftheirhybridvehicles.
Themarketforenergystorageproductsisalsohighlycompetitive.Establishedcompaniesaswellasemergingcompanieshaveintroducedproductsthatare
similartoourproductportfolio.Forinstance,thereareseveralcompaniesprovidingindividualcomponentsofenergystoragesystems(suchascells,battery
modules,andpowerelectronics)aswellasothersprovidingintegratedsystems.
Mostofourcurrentandpotentialcompetitorsinboththeautomotiveandenergystoragemarketshavesignificantlygreaterresourcesthanwedo,maybe
abletodevotegreaterresourcestothemanufacture,saleandsupportoftheirproducts,andhaveotheradvantages.Webelieveourexclusivefocusonelectric
vehicles,electricvehiclecomponentsandenergystorageproducts,aswellasourhistoryofvehicledevelopmentandproduction,however,arethebasisonwhich
wecancompeteintheglobalautomotivemarketinspiteofthechallengesposedbyourcompetition.
Intellectual Property
Aspartofourbusiness,weseektoprotectourintellectualpropertyrightsinvariousways,includingthroughtrademarks,copyrights,tradesecrets,including
know-how,patents,patentapplications,employeeandthirdpartynondisclosureagreements,intellectualpropertylicensesandothercontractualrights.
Additionally,consistentwithourmissiontoacceleratetheadventofsustainabletransport,weannouncedapatentpolicyinwhichweirrevocablypledgedthatwe
willnotinitiatealawsuitagainstanypartyforinfringingourpatentsthroughactivityrelatingtoelectricvehiclesorrelatedequipmentforsolongassuchpartyis
actingingoodfaith.Wemadethispledgeinordertoencouragetheadvancementofacommon,rapidly-evolvingplatformforelectricvehicles,therebybenefiting
ourselves,othercompaniesmakingelectricvehicles,andtheworld.
Segment Information
Weoperateasonereportablesegmentwhichisthedesign,development,manufacturingandsalesofelectricvehicles.
Employees
AsofDecember31,2015,wehad13,058full-timeemployees.Todate,wehavenotexperiencedanyworkstoppages,andweconsiderourrelationshipwith
ouremployeestobegood.
Available Information
Wefileorfurnishperiodicreportsandamendmentsthereto,includingourAnnualReportsonForm10-K,ourQuarterlyReportsonForm10-QandCurrent
ReportsonForm8-K;proxystatementsandotherinformationwiththeSecuritiesandExchangeCommission(SEC).Suchreports,amendments,proxystatements
andotherinformationmaybeobtainedbyvisitingthePublicReferenceRoomoftheSECat100FStreet,NE,Washington,D.C.20549.Informationonthe
operationofthePublicReferenceRoomcanbeobtainedbycallingtheSECat1-800-SEC-0330.Inaddition,theSECmaintainsawebsite(www.sec.gov)that
containsreports,proxyandinformationstatements,andotherinformationregardingissuersthatfileelectronically.Ourreports,amendmentsthereto,proxy
statementsandotherinformationarealsomadeavailable,freeofcharge,onourinvestorrelationswebsiteatir.teslamotors.comassoonasreasonablypracticable
afterweelectronicallyfileorfurnishsuchinformationwiththeSEC.TheinformationpostedonourwebsiteisnotincorporatedbyreferenceintothisAnnual
ReportonForm10-K.
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