1. The Investment Environment of The United Arab Emirates
Tesla Motors
The Investment Environment of
The United Arab Emirates

2. Outline of topics Our Company The United Arab Emirates
Brief History
Operations
Our Product in the UAE
The United Arab Emirates
Demographics
Social, Political, and Economic
Cultural Dimensions
Auto Industry in the UAE
Luxury Auto Market
Our Competitors
Culture of Auto Industry
Tesla Products within the UAE
Expansion Plan
Mode of Entry
Locations
Infrastructure
Strategic Alliance
Considerations

3. Our Company

4. Tesla Motors 2003 - Tesla Founded Founders: Martin Everhard
Marc Tarpenning
Joined by Elon Musk
First production car produced

5. Making Electric Cars without Compromises
Tesla Motors
Making Electric Cars without Compromises
2000 Chevrolet EV1
0-60: 8 seconds
Max range: 100 miles
Unavailable for purchase
2006 Tesla Roadster
0-60: 3.7 seconds
Max Range: 200+ miles
Cost: $130,000

6. Tesla Operations Freemont, CA – Production Factory
Tilburg, Netherlands – Factory opened August 2013
Supercharger stations
Showrooms

7. Our Product in the uae Model S Model X Seating for 7
Range of 300 miles
Stylish and luxurious
Model X
All wheel drive
Falcon doors

8. The united Arab Emirates

9. Demographics Population as of July 2013 Languages Religions
5,473,972
Languages
Arabic (Official)
English
Farsi
Hindi
Urdu
Religions
96% Muslim
4% Other (Christian & Hindu)
Gender Comparison
2.19 Males per Female (2013 est.)
Age Comparison
0-24 years: 34.4%
24+ years: 65.6%

10. Social Arabic & Islamic traditions Official language: Arabic
Subtle variations between seven emirates
Dubai
Abu Dhabi
Ajman
Fujairah
Sharjah
Ras al-Khaimah
Umm al-Qaiwain
Official language: Arabic
English is widely used
80% of population is non-Emirati
High literacy rates for region
90% can read & write

11. Political President & Prime Minster National government
Elected by Federal Supreme Council
Seven emirs (hereditary monarchs)
National government
Emirates govern where national responsibility ends
Flexibility to address local issues & concerns
Constitution of the United Arab Emirates
Various freedoms & rules of law
Overseen by elected Federal Supreme Court
Includes Sharia (Koran teachings) & civil courts

12. Economic Key industries Open economy 7th largest oil reserve
Electricity production: 37th largest worldwide (2012, est.)
83.31 billion kWh
GDP: 50th worldwide (2012, est.)
Greater than $275 billion
Inflation rate: 11th lowest in the world (2012, est.)
About 0.7%
Key industries
Commercial Ship Repair
Construction Materials
Fertilizers
Cement
Aluminum
Fishing
Petroleum
Petrochemicals
Open economy
Diverse & non-dependent on oil & gas, < 25%

13. Cultural Dimensions (Hofstede)
Power distance (90)
High inequality in power distribution
Hierarchical based government
Individualism (25)
Relatively low score
Loyalty to hierarchical rule
More collectivist society
Masculinity (50)
More masculine society
Homosexuality is illegal
Distinct gaps in gender roles
Uncertainty avoidance (80)
Intolerant of unorthodox behavior
Strong Islamic roots
Long-term orientation (no score)
Relatively new nation
More sustainable future-orientation

14. the UAE is a good fit for tesla

15. auto Industry in the UAE

16. Our Industry Luxury car sales Growth in industry Arabian Automobiles
Booming
2012 successful for luxury car manufacturers
Growth in industry
By 2017, expecting 9% growth
Arabian Automobiles
Increase of 25% in share price in 2012
Highest in last 5 years
Tesla Model S

17. UAE Luxury Auto Market In 2012: 245,000 cars sold
Increase of 25% over 2011
Projected for 2013:
370,000 vehicles,
Increase of almost 38%
Q1 of 2013:
Audi: increase of 46%
The Volkswagen Group: increase of 45%
Jaguar Land Rover: increase of 25%
Abu Dhabi Motors
Rise in sales of 39% in Q1
Emirates Motor Company
Rise in sales of 23% in Q1

18. Sustainable Competition
KARMA FISKER
BMW I3, HONDA JAZZ, NISSAN LEAF, ETC.
Hybrid
Only 80 miles
Cramped Interior
Slow Charging
About $150K
Economical Size
Economical Features
High Price
Not Luxurious- Different Class Than Tesla
Mitsubishi MiEV

19. Luxury competition ASTON MARTIN FERRARI MERCEDES BMW 3 SERIES
Price averages $190K
“Embarrassingly expensive & impractical”
7.3L v12 engine
About 15 mpg
About $400K
“Stupidly expensive”
No fuel efficiency
6L v12 engine
About 14 mpg
About $100K
Priced too high
Poor fuel efficiency
About $100K
Overpriced
Feels more sporty than luxurious
Poor fuel efficiency

20. Attributes of our product
Single charge: range of 480 km
Seat 5 adults & 2 children
2nd trunk under hood
More room than station wagons
3g wireless connectivity
Automobile magazine and motor trends 2013 car of the year
The wall street journal calls it “simply amazing”
Practical & Luxurious

21. Expansion Plan

22. Mode of entry First: Direct Exporting to Dubai Dubai Auto Zone
Branch Office
Foreign Sales Representative
Marketing Strategy
Brand Awareness
Dubai Auto Zone
100% Ownership
Tax Exemption
Later: Foreign Direct Investment
Dealerships
Manufacturing Factory
New or Existing Buildings
Contract Manufacturing & Local Hiring

23. Locations First showrooms in Dubai near: Airport Downtown Mall Area
Autodrome
High End Residences
Letter on Map
Location A
Dubai Airport B
Dubai Mall C
Autodrome

24. Building an infrastructure
Two charges to get around four biggest cities
Mercedes-Benz E63 AMG valued at $80,000 ($10,000 more) on one full tank
Presence of superchargers will increase competitive advantage
Cost of Installation:
Home Charging: < $1,000
Charging stations: $10,000 to $40,000 per station
Charger at gas station: $1,000 to $2,000 per charger
Letter on Map
Location A
Dubai B
Abu Dhabi C
Al Ain D
Muscat

25. Strategic alliance Opportunities
UAE Government
Electricity Generation
Real estate
Showrooms
Superchargers
Ptl Solar
Encourage Purchase
Reduce Costs for Consumers
Sustainability

26. Negotiation Considerations
Punctuality
Time to Reach Agreement
Appointments & Meetings
Several Meetings
Prayer Time
“Fi Amanillah”
When Escorting to Exit