Artemis Group: An Enterprising Approach To

Investments (group/ holding company)

private
Introduction
Artemis group is a holding company owned by Pinault family, founded by
Francois Pinault in 1992. The Artemis Group is an international holding
company which targets long-term liquidity. Artemis owns and manages
many different businesses and invests in many sectors such as luxury,
fashion, wine, art, and financial services.

Aims
The mission of Artemis Group is to enhance and capture value through
proper management of assets and investments in various industries. The
company looks to address environmental issues and enhance culture by
investing in such enterprises. Another one of Artemis’s goals is to reduce
consolidation risk by geographical and sectoral expansion, taking
advantage of structural growth prospects across a wide range of sectors
from High end fashion to Fine art whilst also keeping economic return and
cultural perspective in balance.

Tactic:
A significant role comes from strategic investments, but another tactic is
that Artemis aims to grow and evolve while keeping the interests of its
stakeholders in industries where culture, luxury and environmental
safekeeping are combined. The company’s business are founded on
ethical principles with no element of destruction.

• The vision in Artemis is such that businesses are seen in a way where
they do not only aim at making profits but also, aim at making a positive
change in society and the environment, culture included.

Sustainability and Social Responsibility:

It is noteworthy that all strategies adopted by Artemis EV lifestyle brand

projects embrace considering sustainability and corporate social
responsibility, especially through Kering which has promised to source
100% of its key materials sustainably by 2025 and aims at dramatic cuts
in carbon emissions. It is in line with the group’s aspirational strategy of
being at the forefront of green luxury that enables its expansion in the
future without compromising the conservation of the environment.
Owns
Kering (global luxury group that owns GUCCI, Saint Laurent, Balenciaga
and etc)

Christie’s (world renowned art auction)

Chateau Latour (prestigious vineyard in Bandeaux)

Puma (well-known sportswear brand)

Palais des festivals (company manages famous Palais des festivals et des
congres in cannes)

and many more

Tesla (INC) revolutionizing the Automotive and Energy Industries

Introduction
Founded by Martin Eberhard and Marc Tarpenning in the year 2003, the
company Tesla is a progressive automotive and energy company that
specializes in electric vehicles, solar panels, and energy storage devices.
With Elon Musk at the helm who joined as an investor in 2004 and became
the CEO later on, Tesla as a company not only revolutionized the
automobile industry but positioned itself at the forefront of innovation for
sustainability.

Type
Tesla is a public corporation, it’s available for public to buy and become
shareholders but it functions like a corporation since it is US based
company (not plc)

Mission and Vision

As firm believer of sustainable energy, Tesla focuses its innovative efforts
on electric vehicles which will help reduce the dependency on fossil fuels,
solar energy and energy storage. That is why the company is taking steps
towards creating a better tomorrow by developing eco-friendly strategies
as part of its vision.

Aim
accelerates the worlds transition to urinable energy and reduce
dependence on fossil fuels.
Main shareholders
Elon Musk owns about 13% to 15% (co-founder of Tesla). Institution
investors own about 40% to 45%, (vanguard group, BlackRock etc.).
Company insiders, retail investors and, ETFs and index funds

IN DEPTH
Group/Holding company!
In a group there is a parent company that usually owns over 50% of its
subsidiary companies. The parent company largely influences its
subsidiary companies and has a large hand in the important decisions
made by its subsidiary.

In a group although parent companies own and have influence over its
subsidiaries, subsidiaries operate as separate entities and they have their
own management team, financial reporting etc.

Basic benefits of a holding company: tax benefits and asset

protection through diversification, as well as efficient management of
multiple companies

Basic disadvantages: complex legal structure, regular scrutiny,

limited control.

Why did Francois Pinault open a holding

company?
How Artemis S.A start
In 1962 Francois Pinault, a school dropout tries helping his father in timber
trading.

He opened a company (now called Kering) started off as a timber trading

company named establishment Pinault. In the 1970s and 80s Pinault
invested himself in retail markets. He started buying struggling businesses
for low prices and transformed them into profitable ones, and later sold
them at a profit. In 1990 he took a big shift and went into luxury goods.
Making his mark by acquiring Gucci in 1999 started his motive to build a
global luxury empire.

Gucci was a risky purchase due to the internal conflicts going on at the
time within Gucci, but Pinault took it as an opportunity and turned it
around to make it successfully.
Then in 1992 Pinault opened Artemis cause Pinault wanted to create a
holding company that could diverse his personal and family investments
beyond just one industry Artemis let Pinault invest more privately and
think of his long-term goals without considering the demands of the public
shareholders Artemis became the controlling shareholder of Kering giving
him excessive influence over Kering’s strategy while still focusing on other
ventures through Artemis.

Artemis gave Pinault benefits from tax consolidation; this allows the
company to offset profits from one subsidiary with the losses of another in
turn paying less taxes. Also, dividends paid by subsidiaries to the holding
company are either tax free or tax at a reduced rate allowing owners to
avoid double taxation. This enables more efficient capital flow between
subsidiaries and the holding company. And when they sell a company,
they might pay less taxes on the profits by reinvesting the money in new
ventures or other subsidiaries.

Having a holding company also reduces risks to the core business when
investing in other ventures, they can keep important assets protected
separate from risky operations.

Passing the business down to the family is made easier avoiding the
complexity of public companies. Which is the business has been secure
within the Pinault family passing through generations.

Financial Overview:

In the year 2022, while looking at the Artemis Group’s financial position,
one major source of the group’s financing is the luxury group Kering with
revenues of about €20.35 billion. This contribution plays a critical role in
the company’s overall financial health contribution. It provides a
preliminary overview of the business activity of Artemis as a company
rather than that of the private entity that it is. Based on information
contained in its portfolio, generic assumptions provide total revenue
figures between 30 and 40 billion euros. This significant financial strength
is driven by its ownership of some of the world’s most prestigious luxury
brands, including Gucci, Saint Laurent, Balenciaga, Alexander McQueen.

Apart from holding luxury fashion brands, Artemis also has core
investments in solid and strategic assets like wine, and art, and has
ventured into real estate. With regards to remarkable enterprises and
growth of the group, in 2022 Christie’s Auction House, one of the most
prestigious auction houses in the world, generated $ 7.12 billion in art
sales which further strengthens the group. Artemis’s outlook on the
market and its consequent activities is more than sound diversification of
a portfolio, it is a sustained approach to investing in what others would
consider low-yield markets and turning them into high yield sources of
revenues.

Diving into Elon Musks history

Elon Musk, one of the most successful entrepreneurs of current times, was
born in 1971 in South Africa. Ever since he was twelve, he had a clear
inclination toward technology and bootstrapping his own business by
marketing software. He immigrated with family to the United States for
college education and went to Stanford for a while only to quit in search of
business opportunities. Between foundering Zip2, the first commersial
saas, and selling it for something close to $300 million, He went on to co-
found and manage X.com which transformed into payflow & subsequently
purchased by eBay for $1.5 billion Extensive Musk’s future outlook came
with the design of SpaceX in 2002, that aimed to bring down the costs of
space transport and make space travel affordable to the masses. Then in
2004 he became an investor in Tesla Inc. and later its Chief Executive
Officer turning the company into the largest manufacturer of electric
vehicles in the world and construction active solar power through
SolarCity.

Musk's creativity is paralleled by his scary strategic financial execution.

For example, in his acquisition of Twitter (now X) in 2022, Musk secured
loans against his Tesla shares and used them as security deposits instead
of cash, therefore not selling off any asset and still financing the $44
billion who was able to showcase how wisely he could use personal and
corporate equity combined. Throughout his career, Musk has been
occupied in founding Neuralink and The Boring Company in order to
revolutionize brain computer interaction and infrastructure.

Why did he make Tesla go public

Tesla started off private, funded by venture capital and private investors
but went public in 2010 after realizing they needed much greater funds to
reach their goals.

Elon joined the company as an investor in 2004, with an investment of

$6.5 million. He officially become CEO in 2008 after the co-founders Marc
Tarpenning and Martin Eberhard left. He had a greater vision for Tesla and
his main reason to go public was to raise capital to support his plans.

Tesla got many benefits from going public such as a larger pool of
investors which would have been limited if they were private intern
limiting its ability to scale as quickly
Going public helped Tesla attract a broader customer base from its media
exposure. Investors trusted in Tesla bringing in more investors. It showed
suppliers buyers and investors that they were secure and had confidence
in their future, and financial situation.
Another benefit is that tesla’s new public profile attracts top talented
employees by offering them shares they benefit from.

It’s access to global markets helped Tesla expand its operations

internationally, they opened production factories in China, Germany and
other markets increasing its reach globally. This also helped them gather
funds for large projects such as Gigafactories, autonomous driving
technology and its energy solutions business.

On top of everything Tesla being a public company can use its shares as
currency to buy other companies, they bought SolarCity in 2016 using this
method.

Financial overview
Tesla financial figures have been quite impressive. This number is
projected to be even higher as of 2023, where revenue was $81.5 billion,
with a net gain of approximately $12.6 billion. It is worth mentioning that
due to the extremely fast growth of its market capitalization, Tesla has
become the most valuable car manufacturer in the world, enjoying more
value than traditional leaders Toyota. Tesla’s valuation ranges from $700
to $900 billion reinforcing it’s position as one of the powerful players in
the automotive and energy sectors.

The company’s primary driver of profitability has been the most popular
selling electric vehicle, Model 3, and the entry of Tesla’s gigafactories
located in China and Germany among other countries into the global
market. Revenues from sales of solar energy and batteries from the
renewable energy division of Tesla are some of the factors that contribute
to the conglomerate growth.

Overall Tesla has achieved the following by going public

High valuation and market capitalization

Access to Dept and equity markets

Global brand recognition

Owners and shareholders

Artemis S.A
Francois Pinault: born August 21,1936, founder of Artemis and Karing.
French businessperson and an art collector. He was a strategic man. He
was born in a small village in Brittany, France, in a middle-class family.
When he was 27, he started a timber trading company, his company
prospered through acquisitions, in retail sector. He took his company
public in 1988 under the name Pinault-Printemps-Redoute (PPR), starting
his journey into luxury goods and making his mark in 1999 with GUCCI a
struggling Italian luxury brand at the time. In 1992 Pinault started Artemis
SA a holding company to manage his expanding portfolio. It became a
vehicle for family investments. Pinault strategically focused on
undervalued projects such as GUCCI, Boucheron, and Bottega Veneta. He
smartly shifted from timber to retail and later to luxury moving with time
and his ambitions showing great entrepreneurial flexibility and foresight.
In 2003 Francois handed the management of his business to his son and in
2005 displayed his famous art collection in Palazzo Grassi in Venice.

His son is currently the CEO of Kering and chairman in Artemis SA. Henry
studied at HEC Paris one of France’s best business schools and joined the
family business early on learning through its ranks.

Francois-Henry changed the company’s focus on luxury goods and selling

off its retail assets and by 2013 under his leadership PPR was renamed
Kering known to be a global luxury group owning GUCCI, Saint Laurent,
and Alex McQueen. Henry pushes forward sustainable luxury and
ecofriendly practices, trying to reduce environmental footprint of its
brands. Henry takes after his father in business.

He is also involved in philanthropy with his wife Salma Hayek, an actress,

focusing on women rights, climate change and social equality. In 2019 he
committed €100 million through Artemis to help rebuild the Nortro-drame
cathedral (a famous church) after it was in a bad fire

Tesla inc
Elon Musk is known to be a visionary leader and although, he did not
found Tesla once he became CEO in 2008, he stood with Tesla through its
critical financial and operation challenges.

Elon’s work ethic, substantial risk tolerance and innovation focused

mindset gives his company a great leverage to reach the top.

Musk took Tesla pubic in 2010, raising $226 million

The company boomed from there introducing EVs like model s in 2012 and
model 3 in 2017. Tesla became most valuable automaker in 2020 raising
heads of traditional giants like Toyota
Martin Eberhard, co-founder and first CEO started the company in 2003
with Marc. He was CEO till 2007, when Musk assumed greater control. He
made the initial design and development of the Tesla Road star the first
electric sports car, he also worked on the early development of the
battery system which became a foundation system. He was an engineer
and entrepreneur. He did most of the groundwork before leaving due to a
disagreement with Musk.

JB Straubel co-founder and former chief technology officer CTO, joined

2004. He played a vital role in building Tesla’s Gigafactories, it laid the
foundation for renewable energy products. He had a calm persona which
contrasted well with Musk’s public one, he had deep technological
knowledge.

Marc Tor penning co-founder, one of Tesla’s original founder from 2003, He
left in 2008. He was in charge of finance and getting investments. He was
a technology entrepreneur with background in software. He left after the
roadster’s launch.

Large institute investors who own around 5 to 10% in the company such
as BlackRock and Vanguard group have a say in the company as well.
They are not involved in day-to-day management, but they do influence
the company by voting on critical issues during shareholder meetings
including board elections, executive compensations, and corporate
governance policy

Artemis’s organizational structure

Artemis uses a matrix structure in simple terms. This means instead of
reporting to one manager; people report to two or more typically one
based on the department they work in, and another based on the specific
project or product they're working on.

Artemis is based on a matrix organizational structure which supports cross

functional teams and integration amongst different subsidiaries. The
Pinault family retains its hold on the company, with Francois –Henri Pinault
as the chairman of Artemis company and CEO of Kering. Each of the
divisions of Artemis is managed more or less independently with its
executive and management and creative teams encouraging creativity
whilst keeping in line with the strategy of the group.

This matrix structure also enables cross-sector and portfolio company’s

collaboration, making Artemis quick on the uptake of decisions especially
on mergers and acquisitions, sustainability policies and global ventures
due to the need of the organizational structure.
Artemis’s matrix
Functional departments, specialized units such as finance, marketing and
etc. these manage all subsidiaries.

Business division/brands, each brand or portfolio company (Kering,

chrsie’s and etc) have their own leaderships.

From its latest update Artemis has around 80 employees, its small
employee base manages significant assets and holdings globally. As it’s a
holding company it does not need many workers, but its subsidiaries have
thousands of employees.

Having a matrix set up can get quite confusing and sometimes create
miscommunications confusions between managers and employees, but
with a smaller employee base Artemis will face less issues and this way
they can utilize equipment more effectively and helps in managing the
multiple investments and businesses.

Tesla’s organizational structure

Tesla has a slightly confusing organizational structure; it is a mix of
structures although its primarily a flat structure but has elements of tall
and matrix as well.

Tesla has very few layers of management so there is fast decision making
and direct communication, so all employes can get directly in contact with
main manager and Elon himself as well. This also lets employees give
their ideas directly to the main managers which helps in fast innovations
and comfortable relationships.

Tesla is not flat throughout some areas have defined hierarchies in their
factories and supply chain example the gigafactories. This is done
efficiently and smoothly.

In complex projects Tesla incorporates a matrix structure as well for

example in their vehicle development projects such as the Cybertruck
where supply chain, design and engineering team had to work together.
Tesla’s globalization team as well works in a matrix format, sometimes
they have duel reporting.

As of 2023 Tesla has 127,000 employees which is still an increasing rate.

Tesla has lot to offer to his employees hence they stay satisfied and
motivated to work their best. They have chances to give their ideas and
work on them, they can also have a part in its shares giving them to work
to see the company prosper so they can profit of the company etc.
Comparing companies
Comparison with Artemis Group:

It is important to show that both Artemis Group and Tesla Inc are
considerable players in the market. However, they are very polarized in
the way they strategize and what areas they choose to emphasize.
Artemis works in luxury fashion, art, and wine, and seeks to promote
cultural values and responsible luxury brands. In respect of Tesla, this
company is about advanced technologies and green energy, which
changes the world energy consumption approach and the transport itself.

Long-term vs. Disruptive Innovation:

Long-term strategies on diversified assets have been the cornerstone of

Artemis’s success. Franchise opportunities by purchasing underperforming
brands- say Gucci in the year 1999- saw Artemis allowing faltering
businesses erase enormous costs and leave to become famous luxurious
brands. Such a strategy seeks to engage in low risk high return
investments that embrace cultural practices, but also promote ethical
sustainability.

On the other hand, there is Tesla, whose model works because it pursues
breakthrough innovations. The company stays innovative in the
automotive and energy sectors as it develops innovative approaches
including self-driving vehicles as well as green energy. Tesla has positioned
itself in substantial risk and high return industries developing at a fast
pace.

Sustainability Approaches:

Tesla took a shorter time to reach its success, and we can see how Musk
saw a promising idea with potential and invested and took leadership.
Many qualities are similar in Pinault and Musk as leaders, inventors, and
entrepreneurs. They both had an eye for companies with potential and
even though they both went in vastly different fields with quite different
business models we can see a mindset that needs to be set up to own and
lead a business to success.