Tesla Motors, Inc.

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University of Oregon Investment Group April 18, 2013 General Motors Company – 15% “General Motors Company (GM), incorporated in on September 16, 1908, designs, builds and sells cars, trucks and automobile parts worldwide. The Company also provides automotive financing services through General Motors Financial Company, Inc. (GM Financial). It operates in four automotive segments: GM North America (GMNA), GM Europe (GME), GM International Operations (GMIO) and GM South America (GMSA). GM’s total worldwide vehicle sales were nine million during the year ended December 31, 2011.” – Reuters.com General Motors was chose to be one of the comparable companies because it is an American car manufactory. GM faces the same risk and competition as Tesla. We chose to weight this company 15% due to its similarities of Beta, geographic sales. Toyota Motor Corporation – 10% “Toyota Motor Corporation is a Japan-based company mainly engaged in the automobile business and financial business. The Company operates through three business segments. The Automobile segment is engaged in the design, manufacture and sale of car products including passenger cars, minivans and trucks, as well as the related parts and accessories. The Finance segment is involved in the provision of financial services related to the sale of the Company's products, as well as the leasing of vehicles and equipment. The others segment is involved in the design, manufacture and sale of housings, as well as information and communication business.” – Reuters.com Toyota Motor Corporation was weighted as 10% for the valuation because it is a Japan-based company. It faces different growth risks and it has a negative revenue growth rate in 2013. Ford Motor Company – 15% Ford Motor Company (Ford), incorporated in 1919, is a producer of cars and trucks. The Company and its subsidiaries also engage in other businesses, including financing vehicles. The Company operates in two sectors: Automotive and Financial Services. Its Automotive Sector includes Ford North America, Ford South America, Ford Europe and Ford Asia Pacific Africa. Financial Services includes Ford Motor Credit Company and Other Financial Services.” – Reuters.com Ford Motor Company was chosen as a comparable company due to its similar beta to Tesla. More importantly, Ford is an America-based company, thus we weighted this company 15%. UOIG 10
University of Oregon Investment Group Nissan Motor Co., Ltd. – 10% April 18, 2013 “Nissan Motor Co., Ltd. is engaged in the manufacturing, sales and related business of automotive products, industrial machinery and marine equipment. The Company has two business segments: automobile and sales financing. The automobile segment is engaged in the passenger cars, trucks, buses, forklifts, manufacturing parts for oversea production. The sales financing segment is engaged in credit, lease. The Sales financing segment consists of Nissan Financial Services Co., Ltd. (Japan), Nissan Motor Acceptance Corporation (USA), NR Finance Mexico S.A. de C.V. SOFOM E.N.R (Mexico) and other seven companies, totaling 10 companies, and sales finance operations of Nissan Canada Inc. (Canada).” – Reuters.com Nissan Motor was chosen as a comparable company due to its similar product offering. We weighted the company 10%, because it has a lower beta and a negative growth rate in 2013. Honda Motor Co., - 10% “Honda Motor Co., Ltd. (Honda), incorporated on September 24, 1948, develops, produces and manufactures a variety of motor products, ranging from small general-purpose engines and scooters to specialty sports cars. The Company’s business segments are the motorcycle business, automobile business, financial services business, and power product and other businesses. Honda conducts its operations in Japan and worldwide, including North America, Europe and Asia. On March 22, 2011, the Company completed the selling of all its stake in Hero Honda Motors Limited to Bahadur Chand Investments Pvt.Ltd. and Hero Investments Pvt. Ltd. In August 2012, the Company acquired Usha International Ltd” – Reuters.com Honda Motor Co. was chosen as a comparable company because its similar product offering. It was weighted 10%, because the company is a non U.S.- based company and it has a slightly smaller beta. Tata Motors Limited – 20% “Tata Motors Limited, incorporated on September 1, 1945, is an automobile company. Through its other subsidiary, the Company is engaged in providing engineering and automotive solutions, construction equipment manufacturing, automotive vehicle components manufacturing and supply chain activities, machine tools and factory automation solutions, high-precision tooling and plastic and electronic components for automotive and computer applications, and automotive retailing and service operations. It operates in two segments: automotive operations and all other operations. Its automotive operations include all activities relating to development, design, manufacture, assembly and sale of vehicles, including financing thereof, as well as sale of related parts and accessories. Its other operations business segment includes information technology (IT) services and machine tools and factory automation solutions.” – Reuters.com Tata Motors was chosen and weighted 20% due to its higher revenue growth rate in 2013 and 2014 comparing to the other major car companies. Tata also shares a similar beta, similar Gross Margin, EBIT Margin, EBITDA Margin with Tesla. UOIG 11
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Tesla Motors, Inc.

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