Brief description of the organization

Brief description of the organization The automotive industry has seen some big changes in the last few decades. The advent of new sources has always been related to the need in finding new solutions, especially in periods in which the oil price was increasing, or new techniques or technologies were found to innovate how people get around [1]. Electric vehicle (EV) industry is still in the introduction stage in product life cycle, and its dominant design it’s still dormant. The world's best-selling EV is the Nissan Leaf, a modest Little passenger vehicle, with over 165, 000 units sold by March of this year since its release in Late 2010 [2]. The Mitsubishi Outlander PHEV and the Tesla Model S are the second and third best-selling EVs today. Tesla was founded in 2003 by Martin Eberhard, an entrepreneur who wanted to create a faster, sexier electric car. In 2004, Elon Musk agreed to fund the company and became Chairman of the Board. A few years later Eberhard left and Musk became CEO [3]. In 2018, Tesla had grown into a company with almost $12 billion in annual revenues that produced multiple car models, owned Solar City, produced energy storage systems (for example, Powerwall) and solar roofs. Elon Musk is an entrepreneur who plans to change the world with a mindset towards sustainability. He is often compared to Steve Jobs in terms of being a technology visionary, with an exceptional drive, “innovative acumen” and “relentless work ethics”, successfully creating value for his shareholders [4]. Among his business endeavors there are noticeable achievements such as co-founder of Tesla Inc. and founder of SpaceX. He was previously a Pay-Pal co-founder which was sold in 2002 to eBay. Founded in 2003 by a group of Silicon Valley engineers, Tesla Inc. is about creating better electric cars in comparison to gasoline automobiles, accelerating the “advent of sustainable transport by providing compelling, mass-market electric cars as soon as possible” [5]. Its CEO, Elon Musk, plans “to continue developing increasingly accessible and mass-market electric cars” [6]. This vehicle uses one or more electrical engines instead of a traditional one, to give the propulsion. They have a pack of batteries which can be charged either by traditional power sockets or by charging stations that can be found in the major cities and provide high voltage power to recharge the batteries quicker than traditional power sockets. These vehicles are rated ZEV, Zero Emission Vehicles, because they do not release NOx or CO, so they can enter city centers and limited traffic areas [7]. There are many discounts in buying these cars in a lot of countries and the taxation is favorable, too, since sometimes it is possible not to pay certain taxes or tariffs. The range they offer is very limited, as they are thought mainly for an urban use, and sometimes the speed is just sufficient to be used in highways. Their use is sometimes restricted to big cities, as they do not represent a valid alternative to traditional cars especially for people who work extensively with cars like salesmen or cab drivers. Another major issue is charging time which tends to be longer, above all if traditional sockets are used. Even if the running costs are lower than traditional fossil fuels, the price to buy these cars has always been higher and the maintenance is not cheap as well. These engines are noiseless, so they represent an issue for pedestrians in cities. Traditionally, these cars were related to slow small-sized ones, unusable out of the city centers [8]. Objectives of the work Tesla missed several of its production goals in early 2018 causing investors to be concerned, but at the end of 2018 posted its first annual profit. Few companies have attracted as much scorn and adoration as Tesla [9]. When Tesla launches a product like the Cyber truck, the reception tends to be divisive: critics see it as further evidence that founder Elon Musk is out of touch and doomed to fail, while supporters buy in — within a month Tesla received 200, 000 preorders for the new vehicle. Compare that to the Ford-150, the world’s best-selling car in 2018, which sold just over 1 million vehicles that year. Disagreements aside, there is no question that the company has shifted the auto industry toward electric vehicles and achieved consistently growing revenues (passing $20 billion in 2019). At the start of 2020, Tesla was the highest performing automaker in terms of total return, sales growth and long-term shareholder value. Surely, there is a method to what seems like madness to so many [10]. It’s no surprise to see Tesla leading major automakers in the deployment of artificial intelligence (AI). Currently, as of 2021, Tesla ranks as number two for Luxury Hybrid and Electric Cars, according to the U. S. News and World Report. More specifically, the Tesla Model 3 has an impressive scoring of 8. 8 out of 10. So the objective of this work is to identify most aspects of tesla innovation strategies and define one of these important aspects in depth. At the end we will have a prospective of tesla innovation strategies to understand why tesla is one of the most innovative companies in the world. Data and Methodologies In order to acquire comprehensive knowledge of the examined subject, a literature review have been carried out. It focuses mainly on scientific papers related to the subject and the economic websites doing analysis on tesla. Also, useful pieces of information have been acquired by incorporating the knowledge from first part of the course. In the case of categorizing of innovation types in tesla, there are debates between the researchers and specialists in the field of economics so I tried to categorized them using the knowledge from first part of the course and the ideas of renown economists. The order of this paper will be as follows: First of all, I am going to present a short description of all types of innovation. then I will be identifying and categorizing most important aspect of the innovations that has been implemented in tesla. At last we will see a more detail description on one of the most important innovations in the tesla. Incremental innovation Most innovations are incremental, gradual and continuous improvements in the existing concepts, products or services in the existing market. Incremental innovations are just a little better than the previous version of the product or service and has only slight variations on an existing product formulation or service delivery method. Products can be made smaller, easier to use or more attractive without changing the core functionality of it and services can be made more efficient through constant improvement. Although incremental innovation does not create new markets and often does not leverage radically new technology, it can attract higher paying customers because it fulfils the customer needs identified from their behavior or feedback. [11, 12] Disruptive innovation Disruptive innovation is a concept introduced by professor, academic and business consultant Clayton Christensen first in an HBR article and later in his book called Innovator’s Dilemma. Disruptive innovation is a theory that refers to a concept, product, or a service that creates a new value network either by entering an existing market or by creating a completely new market. In the beginning, disruptive innovations have lower performance when measured by traditional value metrics but has different aspects that are valued by a small segment of the market. These types of innovations are often capable of turning non-customers into customers but do not necessarily appeal to the needs and preferences of the mainstream customers, at least not just yet. Disruptive innovation is where traditional business methods fail and requires new capabilities. Although the risks are big, there’s a huge growth potential if everything goes right [12]. Sustaining innovation Sustaining innovation is the opposite of disruptive innovation as it exists in the current market and instead of creating new value networks, it improves and grows the existing ones by satisfying the needs of a customer. Just like incremental innovation, the product performance of sustaining innovation is made slightly better with every iteration, reducing defects. The new improved version of the product can be more expensive and have higher margins than the previous one if it targets more demanding, high-end customers with better performance than what was previously available. However, it might as well be cheaper if it leads to higher volumes and thus higher absolute profits. Traditional business methods and sustainable innovations are often sufficient because they are the most profitable, and the risks are lower. [12] Radical innovation Radical innovation is rare as it has similar characteristics to disruptive innovation but is different in a way that it simultaneously uses revolutionary technology and a new business model. Radical innovation solves global problems and addresses needs in completely new ways than what we’re used to and even provides solutions to needs and problems we didn’t know we had, completely transforming the market, or even the entire economy. [11, 12, 13] To get more concrete and actionable results, innovation should be approached holistically. In this part of the post, we’ll introduce other types of innovation that can be used to improve and unlock new value in different parts of a business. Product innovation Product innovation is probably the most common form of innovation and it refers to improvements in performance characteristics and attributes of the product. It can also use components that differ from previously manufactured products. Product innovations are always tangible, can involve radically new technologies or can be built based on combining existing technologies in a new way, although they don’t necessarily have to involve any technology at all. A product innovation can be a completely new product that has never been seen before, such as the fidget spinner, or it can be an improved version of an existing product, such as wireless headphones or the 2nd generation Amazon Echo [11, 12, 14] Process innovation A process combines the skills, technologies and structures that are used to produce products or provide services. Process innovation generally refers to the implementation of a new or significantly improved production or delivery method. It may also be indirectly related to the company’s products and services, for example in the form of support function processes in HR or finance. Process innovation can be done by applying new technology or improved method to a process and is often done to save time, money, or to serve customers better. It often involves new techniques, equipment, or software, and can often require a cultural or structural change as well. In process innovation, the final product is usually not changed, but the method of bringing out the product is improved [11, 12, 14] Technological innovation Technology as a source of innovation can be identified as a critical success factor for increased market competitiveness. Technological innovation involves new or improved technology, such as new type of machinery or alteration of some form of technology into a product, processes or service delivery methods. When talking about incorporating technology into a production process, for example, it enables automation which results in higher production rates, lower cost per unit of output, and enables more efficient use of materials – reducing variability and resulting in more consistent product quality [11, 12, 14]. Business model innovation In all its simplicity, the business model is how a company functions and earns money. It consists of core values and resources, strategy, core channels and target customers. Business model innovation is a fundamental change in how a company delivers value to its customers or captures it from the market. In practice, it often happens through the development of new pricing mechanisms, revenue streams or distribution channels but isn’t limited to them. What’s challenging about business model innovation is that the capabilities and processes that have been optimized to make a company successful, become the targets for transformation. To be able to create new, viable business models, you usually need to change the fundamental decisions upon which your business operates. In other words, to work on disruptive innovations [12, 15, 16] Architectural innovation Architectural innovation is a concept introduced by a Harvard Business School professor Rebecca Henderson and dean Kim Clark back in 1990. Architectural innovation is described as the reconfiguration of existing product technologies that creates an improvement in the ways in which components, some of which are not necessarily innovative together, are combined. Some examples of architectural innovations include networked computer systems and flexible manufacturing systems, where the core components of the product remain the same, but the relationship between these components and how they link to one another, changes [11, 17] social innovation (sustainable innovation in some sources) Social innovations are new practices or technological inventions that aim to meet social needs in a better way than the existing solutions. These types of innovative solutions can be provided or funded either by public or commercial entities. There are many reasons why social innovations are important, such as to improve working conditions, provide more education, develop the community or make the population healthier. Thus, it can be said that social innovations are necessary for extending and strengthening civil society [11, 18] It is important to emphasize that these dimensions are not independent and do not offer a straightforward system for categorizing innovations in a precise and consistent manner. Another important thing to notice that a company or a product can be defined by more than one innovation type [19]. Tesla innovations I am going to give a short description about most important tesla’s innovations. 1-bussiness model: one of the biggest and most important innovation of tesla is the business model innovation. They have changed their business model in order to meet the requirements for their disruptive innovations where traditional business methods fail and requires new capabilities. 2- Tesla’s electrical vehicles (EVS): tesla motors is being recognized for their innovative electrical vehicles which is their most renown innovation too. Tesla’s innovation strategy has resulted in an extreme level of in-car hardware and software integration. Most other automakers have yet to adopt such cutting-edge technology, let alone unleash the potential of AI and deep learning. cars that go faster, go further (than other electric vehicles) and are safer than internal combustion engine (ICE) vehicle [20]. Also these cars were super stylish compared to other electrical cars in the market. There are other innovations in these cars which will be addressed as independent innovations in this paper (if we sum up these sub-innovations like AI self-driving and new batteries, we will have a disruptive innovation). In my opinion we can categorize EVS as product innovation and disruptive innovation. Tesla, has different capabilities compared to the more traditional car manufacturers. Its software, battery technology and the ability to iterate quickly are capabilities that traditional car manufacturers aren’t very good at, and which will take time and resources for them to acquire so we can consider tesla and their cars as disruptive innovations. It is important to add that some models of EVS are being considered by some sources as incremental or sustaining innovation too [21]. 3- Battery technology (Giga factory project): one of the innovations that tesla is using in his vehicles is a new green battery technology. These batteries have been built by the help and cooperation from Panasonic. These type of battery is really powerful and the way that they are being produced is more environmental friendly. Tesla Giga factory outside of Nevada (it is the facility that is producing these batteries using renewable energy [22]) used to supply all of the lithium ion battery needed by tesla to use in the cars. 60 % of the materials of these barriers can be recycled for creating new batteries. so tesla is offering an ecological sustainability too. So I think we can categorize these batteries as sustainable or social innovation (social and environmental benefits). Also these batteries can be considered as product and sustaining innovation too. 4- Using AI for self-driving: tesla has been using AI for their EVS to make them self-driving and self-parking vehicles too. If we want to considered just AI system, we can categorize this system as a technological innovation. 5- Powerwall: Tesla home battery: Energy Storage for a Sustainable Home. Powerwall is a home battery that charges using electricity generated from solar panels, when utility rates are low, and powers your home in the evening. Automated, compact and simple to install, Powerwall enables you to maximize self-consumption of solar power generation. Powerwall has many advantages. It can allow persons, who are not connected to power grid collect, store and use energy. Tesla claims that the Powerwall can power the average home for eight hours[25]. The Powerwall is a wonderful example of an innovation that is not yet a social innovation. There is little debate that renewable technologies like the Powerwall are going disrupt existing markets. Although there is no agreed upon definition of social innovation, many authors describe it as being an activity that generates good for society [23]. So I am considering powerwall as disruptive and social innovation (sustainable innovation). 6- The Supercharger network: It might seem obvious now, but when Elon Musk proposed building his own charging network, it was a huge gamble. Automakers have long eschewed taking any responsibility for their products other than manufacturing, leaving sales of their cars to franchisees and refueling to completely independent parties [24]. So I am considering this network as a process innovation. It is good to mention some others have considered this network as a radical innovation for a car manufacturing company. 7- Tesla patent open source: 2014, CEO Elon Musk announced that the company would allow other individuals and organizations to use its patents. To accelerate the integration of electric cars into society by removing intellectual property barriers. In-line with the mission and vision statement to bring a greater good to society. I believe that we can categorize this as a sort of social innovation. In his pursuit of making mass-market affordable electric vehicles whilst giving “the zero-emission mobility a push” [25], the company announced that their patents will be made available to anyone who wants to use them in good faith. By doing so in opening their IP portfolio “they want to invite other car makers to jointly tackle the carbon crisis by enhancing the technology and develop the market for electric vehicles which compared to the gasoline powered cars is minimal these days” [25]. This is, indeed, a surprising fact because other competitors in the industry are making considerable efforts to keep total secrecy in connection to the topic on hand. For the conclusion of this part we can consider tesla motors as a company which has different type of innovation. The most important ones which defines this company are business model, disruptive, process, social, sustaining, incremental and technological innovations. Most of the people may consider tesla as a radical innovation but I believe most of the innovations in tesla falls on the category of disruptive innovation. As electric vehicles have gradually started to have a more noticeable impact on the car market, mostly thanks to Tesla, the somewhat academic debate about what kind of innovation the company actually does has picked up in the last couple of years. Tesla is often cited as being a disruptive innovation for the incumbent automakers [26]. However, Clayton Christensen and his followers have argued that Tesla isn’t actually disruptive but sustaining innovation. Still others have claimed the company to be a prime example of radical innovation. I would personally argue that academic details aside, most of these arguments are actually valid, they all simply look at the company from their own points of view. Looking purely at the core technologies of Tesla’s vehicles, both electric motors and lithium-ion batteries have been around for quite some time and an argument can be made that even though Tesla has clearly refined these technologies, the innovations have been sustaining and incremental in nature. However, you could also argue that the way they’ve put together these innovations and constantly and rapidly kept improving them so that they’ve been able to challenge and surpass internal combustion engine cars in many ways is certainly disruptive, not to mention some of the advances they’ve made in self-driving technology. Analysis and Results In this chapter I will analyze the company using the Business Model Canvas by Alex Osterwalder and Yves Pigneur [27], described in their publication Business Model Generation [28]. Key Partners block As for the key partnerships, Tesla has signed some important agreements over time with strategic partners in both the automotive and the battery manufacturing industry. 1-Mercedes-Benz: The first strategic alliance was with Mercedes-Benz. The alliance was made by the German carmaker to develop the battery technology to be adopted by some Mercedes and Smart models. 2-Toyota Corporation: Another important agreement was signed in 2010 with Toyota Corporation. Toyota was the pioneer in the hybrid and electric powertrain fields and, they signed an important contract that considered the production of an all-electric Toyota vehicle, the RAV4, which used the technologies developed by tesla. 3-Panasonic Corporation: they announced their partnership in expanding the production of automotive-grade battery cells for tesla. Since batteries are still expensive to produce and make up a big part of the cost of a car, Tesla and Panasonic’s aim is to drive down the battery costs thanks to improvements in their manufacturing processes and by increasing the production volumes of battery cells and packs. 4-NVIDIA: The tech company provided the infotainment, navigation and instrument-cluster system for both the Model S and the Model X, based on its latest Tegra family processors [25]. Finally, other key partners can be seen in Musk’s other companies such as SolarCity and SpaceX and solar city: which share their knowledge with tesla. Key Activities block 1-Car production and manufacturing: represent for the company the biggest part of its revenues and they are the reason why this organization is widely known. 2-The Supercharger network is another important activity for Tesla Motors. The charge is free for every Tesla model, but other EV or hybrids can recharge their batteries by paying for their consumption. In this way, the company sells energy through these stations that are totally powered by solar energy and are eco-sustainable. 3- innovation: Innovation is an important key factor for Tesla Motors as the company has always wanted to modify traditional ideas about mobility and sustainability. 4- selling electric powertrains to competitors. As I mentioned before, the company gave electric powertrains to two big carmakers such as Toyota and Mercedes. The aim of GigaFactory, in fact, is to produce cells and batteries for both these companies, which are investing in the structure, and for external clients as well [22]. Key Resources block 1-patents have assumed a crucial part in the technology development of tesla according to Elon Musk, open source ideas will be useful for the growth of the sector, and to achieve his goal of ending global dependence on hydrocarbons [29] (Open source means that the technology can be implemented by anyone who wants to enhance it and share with other peers). Among its patents and trademarks, Tesla has some important ones such as the battery swapping technique, and some others regarding battery technology or car technology. 2- Human resource: The Tesla workforce is shared among other companies (SolarCity and SpaceX) and the flow of knowledge is constant. The management team that works at Tesla has important backgrounds related to the automotive and the IT industries. 3- GigaFactory: This facility, which will be sufficient for the production of half a million Tesla vehicles, will be completely powered by renewable sources, gaining the title of net zero energy factory. Revenue Streams block The main revenues for the firm come from the two fields in which it operates: energy and vehicles 1-selling EVS, represent for the company the biggest part of its revenues 2-In many countries, Tesla benefitted from public incentives and some government funding [30] 3-The selling of ZEV credits represents an important revenue stream for the firm. ZEV credits (Zero Emission Vehicles credits) are awarded by the CARB (California Air Resources Board) to all those carmakers that comply with the air pollution limits prescribed. Tesla Motors has benefitted from the sales of such credits to other carmakers that have higher emissions and therefore need a higher number of them. Forbes estimated that, only in the third quarter of September 2014, the contribution was more than $76 million [31]. 4-The sales of electric powertrain components to competitors is another key revenue stream for Tesla. The chance to sell these components to other players and the future possibility to market also batteries or cells to other companies through production from GigaFactory will represent a solid income for the firm. 5-selling energy to other EV manufactures by super charger networks. Cost Structure block 1-Research and Development: At Tesla, R&D expenses weight very much on the final prices of the products offered. In the second quarter of 2015, for example, a Model S was sold losing around $4, 000 per car[32]. Even if at the end of the year the organization reached to gain a margin for the sales of its vehicles, R&D costs still represent a big chunk of the final price. This trend is expected to go up. 2-Salaries: Tesla personnel come from different backgrounds related to the automotive and IT fields. Many of them have been taken directly from the major automakers or from important IT companies as Cisco, Apple, google and Oracle. 3-The marketing strategy at Tesla requires almost no expenses. The company is using an unconventional strategy to delivery its value proposition. In 2015, the marketing budget was approximately 0 while, for instance in 2012 Nissan, spent about $25 million to promote its EV vehicle called the Leaf [33]. 4- retail stores (called galleries): These are located in strategic places to catch the attention of potential customers. Part of the mission statement is that the company wants to sell its products directly to customers through their stores, owns by them. Owning these galleries represents a cost that you cannot find in other traditional car manufactures. 5-The batteries are expensive to build. Part of these costs has been cut down with the implementation of the GigaFactory, at least those concerning battery packs and cells. 6-The materials used in the production of the vehicles are expensive as well. Carbon fiber, aluminum and light alloys increase the final cost compared to traditional steel, which is the most used material in car production. Value Proposition block 1- eco-friendly vehicles, using sustainable operations. 2- The company offers different ways to customize a vehicle, by presenting the choice of different interior colors, options and external characteristics. Moreover, a buyer can decide to buy its automobile with a different battery option and with multiple configurations 3- the performance offered is better than any direct rivals’ and it can be compared to that of several sport cars with unconventional design. 4- Tesla cars now can drive for more than 500 Km per single recharge. In addition to this, Tesla offers a widespread infrastructure of Superchargers, which allow every customer to charge their own car for free. 5- Alongside these savings, many countries offer discounts on taxes and tributes for tesla owners 6- Autonomous driving technology was offered in some EV models. Through this characteristic, the car can drive and park itself. Channels block Tesla sells its vehicles through direct sales, Tesla wants to educate its potential customers in purchasing a completely new vision of cars. That is the reason why the retail stores (or galleries) are located in high foot traffic malls and shopping streets, where people often walk by them. This allows the buyers to interact with Tesla’s sales representatives before deciding which new car to buy. The vehicles can be ordered by placing a reservation on the Internet or at these galleries by depositing a down payment. Customer Relationships block 1-public events which are broadcasted on the Internet on the company’s official site, and on the video streaming websites such as YouTube. 2- test drives of tesla cars before buying, to let the potential buyer feel the difference of driving a Tesla versus a traditional car. (you can do the test at tesla galleries or retail stores). 3-Tesla is a perfect example that even if a company does not spend much in advertising increasing customer satisfaction and brand awareness among its audience remains important. The company has increased its reputation for quality and customer support by reaching its consumers through social media and the Tesla blog. 4-Tesla Best Resale Value Guarantee Program. This consists in keeping the company’s car value higher than any premium rival car in the market. This guarantee allows the customer to return the car after three years of usage, with a fixed value determined when the car is bought. Customer Segments block 1-early adopters of electric vehicles and car enthusiasts. 2- for the Roadster model they were targeting wealthy people who were looking for an innovative sports car, with high performance and zero emissions. 3- The Model S was aimed for families and professionals above average income. 4-Model X, the organization’s target became wealthy families who wanted to buy a full-size premium vehicle that was different to any other competitor’s. 5-the Model 3 was pointing at younger people with lower incomes who wanted something different than a traditional. 6-Tesla vehicles have been sold to taxi companies. 7- For Tesla offers its battery products to B2B clients too. Conclusions Differently from any other car manufacturer, tesla used a completely new way to structure its business model: 1- entering from the high-end market, with a premium sports car with a high price, aimed at a very narrow target, and then moving to the mass market with a compact sedan, priced in line with the competition, with a broader potential customer base. The traditional strategy to enter this industry has been to target first the low-income market, with cheap city cars or small multipurpose vehicles and then move up to more luxurious segments, because the cost to own an EVs was high in the first place. 2- Tesla decided not to protect its trademarks and patents, so that any other player interested in the technology can use it and improve it without incurring in any arbitration. 3- For marketing of such innovative products, Tesla needed a new way to deliver its vehicles. Traditional car manufactures rely on selling network with one-brand and multiband dealers. Tesla’s marketing reaches out directly to customer-enthusiasts, without relying on dealers or other middlemen who might dilute the message. 4- Another relevant difference with every traditional player of the EV industry is that Tesla produces its cells and battery packs internally. Unlike any other carmaker in this segment, Tesla teamed up with Panasonic to build its own cells and battery packs for both its needs and to sell them to other players. This will be possible when the GigaFactory is fully operative. 5- Another innovation Tesla has brought to the traditional business model is its infrastructure Tesla's business model pays particular attention to rolling out charging stations. That may be the biggest obstacle to the mass adoption of electric vehicles. Tesla, combining a vast network of Superchargers and the possibility to change the battery in less than two minutes, has reduced the so-called range anxiety to zero, so much so that Tesla cars can be effectively compared to traditional vehicles when they are driven in zones where the network is developed. In addition to this, the electricity generated in the Superchargers stations is totally sustainable as it comes from solar panels. The network is open also for other EVs if they pay for their energy consumption, while it is free for every Tesla owner. 6- Another Tesla difference has when compared to the traditional carmakers is the way the company generates revenues. Usually, car manufactures rely just on vehicles sales to be profitable. tesla besides selling its vehicles, generates profit in two ways that no other carmaker has ever used: the organization sells electric powertrains and technologies to competitors. Tesla has stretched the business model to encompass energy storage systems for homes and businesses. And it is making money from The selling of ZEV credits too. 7- Instead of simply focusing on the commercial success of its innovative products, Tesla incorporates a strong focus on issues of global importance, including: Sustainable transportation, Climate change mitigation, promoting renewable energy capture and storage, shifting to autonomous technology. 8- Customer segment block of tesla has not been static and has been changing by each product. 9- Traditionally, vehicle manufactures invest heavily in marketing campaigns and advertisements. But Tesla has not put advertisement and marketing on its cost block and as I mentioned, they have an unconventional strategy to deliver its value proposition. Tesla leverages the media and the press by opening the Fremont facility to journalists and experts in various occasions as for the presentation of new products and press releases, as well as many events involving the clients.