Tesla Motors is currently operating within the upper-range luxury vehicle mai that accounts for 15% of the market (3) and there is currently little threat from other EV manufacturers with respect to a product that can compete against th performance offered by Tesla's vehicles for the same price range (Based on an from Exhibit A, B). Tesla has a major competitive advantage due to its Powertr technology as seen in Exhibit D but the direction of other large manufacturers towards developing competitive EVs means this advantage may dwindle as the firms direct more resources towards developing at par technology (Exhibit B). Technological developments especially with battery technologies will result in meaningful cost reductions. Currently EV batteries account for 50% cost of the vehicle (2), with limitations for mass adoption of battery powered electric veh being battery range limitation and high costs. Continued R&D and anticipated economies of scale should spur significant cost reductions and performance improvements (5). Furthermore, the economy bouncing back from a recession to with Eva would wean Teala nanda to be des