1. Negotiation in the Supply Chain Management Tesla Motors

2. Company overview 1.http://files.shareholder.com/downloads/ABEA-4CW8X0/2468175934x0x661989/ee71d11b-3563-489c-9471- 9319fd963626/Q1%2013%20Shareholder%20Letter.pdfhttp://files.shareholder.com/downloads/ABEA-4CW8X0/2468175934x0x661989/ee71d11b-3563-489c-9471- 9319fd963626/Q1%2013%20Shareholder%20Letter.pdf 2.http://www.teslamotors.com/about/press/releases/tesla-repays-department-energy-loan-nine-years-earlyhttp://www.teslamotors.com/about/press/releases/tesla-repays-department-energy-loan-nine-years-early Founded in 2003 in California. Only 2 models produced so far. First time they reached profit was in the first quarter of 2013 1. Paid the $451.8M loan from the US Department of Energy 9 years earlier 2.

3. Negotiation Style LowHigh Low High Concern for Substance Concern for Relationship N3 ACCOMMODATE Build friendly relationship N2 COLLABORATE Creative problem solving N1 DEFEAT Be a winner at any cost N5 COMPROMISE Split the difference N4 WITHDRAW Take what you can get

4. Supplying for Tesla 3. http://www.mypurchasingcenter.com/electronics/articles/tesla-builds-supply-chain-own-image/http://www.mypurchasingcenter.com/electronics/articles/tesla-builds-supply-chain-own-image/ The company works with more than 300 suppliers for their Model S alone 3. Working with suppliers outside the car industry. Negotiation strategy Right supplier for the right part Price Risk for both parties

5. Tesla as a supplier 5 http://www.forbes.com/sites/joannmuller/2013/06/01/what-do-toyota-and-mercedes-see-in-tesla-a-bit-of-themselves/http://www.forbes.com/sites/joannmuller/2013/06/01/what-do-toyota-and-mercedes-see-in-tesla-a-bit-of-themselves/ Innovative approach for a small car company Daimler’s Smarts city battery Mercerdes’s B-class EV powertrain Toyota’s RAV4 EV electric motor, power electronics, battery, gearbox and software 5

6. Questions?

7. References 1. http://files.shareholder.com/downloads/ABEA- 4CW8X0/2468175934x0x661989/ee71d11b-3563-489c-9471- 9319fd963626/Q1%2013%20Shareholder%20Letter.pdf http://files.shareholder.com/downloads/ABEA- 4CW8X0/2468175934x0x661989/ee71d11b-3563-489c-9471- 9319fd963626/Q1%2013%20Shareholder%20Letter.pdf 2. http://www.teslamotors.com/about/press/releases/tesla-repays- department-energy-loan-nine-years-early http://www.teslamotors.com/about/press/releases/tesla-repays- department-energy-loan-nine-years-early 3. http://www.mypurchasingcenter.com/electronics/articles/tesla- builds-supply-chain-own-image/ http://www.mypurchasingcenter.com/electronics/articles/tesla- builds-supply-chain-own-image/ 4. http://www.teslamotors.com/blog-and-press-releases http://www.teslamotors.com/blog-and-press-releases 5. http://www.forbes.com/sites/joannmuller/2013/06/01/what- do-toyota-and-mercedes-see-in-tesla-a-bit-of-themselves/ http://www.forbes.com/sites/joannmuller/2013/06/01/what- do-toyota-and-mercedes-see-in-tesla-a-bit-of-themselves/ 6. http://www.autonews.com/assets/PDF/CA843311210.PDF http://www.autonews.com/assets/PDF/CA843311210.PDF 7. http://www.billionairesaustralia.com/wp- content/uploads/2014/10/Tesla_Roadster_Japanese_display.jpg http://www.billionairesaustralia.com/wp- content/uploads/2014/10/Tesla_Roadster_Japanese_display.jpg