INTRODUCTION
This provides recommendations and analysis for addressing whether Tesla Motors should deepen cooperation with its existing partners Daimler and Toyota or pursue partnerships with other companies in the auto industry. Additionally, the memo addresses the infrastructure and limited model choices that prevent customers from opting for electric vehicles and what Tesla Motors can do to address these problems.
This memo will look at: (1) how to overcome the problem of low production and high manufacturing costs; (2) how to make electric vehicles a more attractive option for consumers through providing supporting infrastructure; and (3) what actions to take to increase the options customers have in terms of electric vehicle models.

RECOMMENDATIONS
1. Partner with other major automakers and component manufacturers to scale up production and lower manufacturing costs.
2. Increase support infrastructure especially charging stations to improve user convenience.
3. Give customers more choices in terms of models.

ANALYSIS
The basis for the above recommendations were optimal support of the key decision criteria, including: (1) increasing the number of units produced by 50% in 2014; (2) tripling the number of charging stations within 2 years; and (3) creating electric versions of existing models from major automakers in similar arrangements to the one the company has with Toyota’s crossover SUV, the RAV4 (See Exhibit IV for details).

1. Partner with other major automakers and component manufacturers to scale up production and lower manufacturing costs
The company has three options for scaling up production through strategic partnerships with other companies in the industry, including: (1) outsourcing to companies that have the capacity; (2) initiating joint ventures; and (3) licensing its technology to other

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