4. Open Patents
Tesla Motors has recently opened up their technology patents for use by other companies in an attempt to get more auto makers, including traditional ones, to get into the business of making and selling electric vehicles. This reflects Elon Musk’s goal of making electric vehicles a new standard mode of personal transportation, and is in fact a smart business move despite going against the grain of established business practices.
It helps popularize electric vehicles by removing barriers to entry. More makers of electric vehicles likely means more electric vehicles on the roads and therefore a quicker rate of adoption. It could also lead to lower prices and a greater amount of choice that all contribute to the same result.
The reason it could be a smart business move is that it could expand the size of the market which Tesla currently dominates. Having a large slice of a small pie is great, but having a large slice of a much bigger pie is even better so this could, contrary to conventional thinking, actually result in bigger profits for Tesla Motors even if there is more competition in the market.
That’s also the counter argument to those skeptical of the move which are probably just nervous that too much openness in this regard, effectively giving up control of a major asset, could hurt Tesla’s future prospects.
But this gets back to Elon Musk’s unique way of thinking. His goal with Tesla isn’t limited to making Tesla Motors a successful company. The greater goal is the adoption of electric vehicles. If Tesla’s activities accomplish that, as far as he is concerned it’s fulfilled its mission. But thanks to this expanding pie effect it is probably going to help Tesla Motors as a company itself be successful as well.
Magnus Thunderson
now if tesla can bring the price down to 35k or less with the Tesla 3 that would be a big step as currently Nissan no long has a surplus but a 3 month waiting list and growing and within 2015 lizard battery and there new policy of free charring stations but the lizard battery is not any bigger just better suited for hotter temp like Tampa so still suck at about 80 miles which is just to short of a range so until they get up to at least 125-150 min as both high heat and very cold weather effect the range as well as the age of the battery
ejhr
This gentleman is most certainly NOT starting from first principles! Otherwise he would show he understands the exponential equation and the 2nd law of thermodynamics. he would understand our civilization has already started its slide to destruction and that going to mars or space are pipe dreams. We won’t even be able to keep going with what we have now as the exponential growth in population and consumption will hit a wall, i.e., a finite planet real soon now. we are heading for a resource poor world,a low tech environment with expensive food also probably scarce as well.
Fun times ahead!Not!
WillSpencer
You’re still promoting the two-hundred year old and repetitively disproven Malthusian Fallacy?
ejhr
It’s not ever disproven, just delayed. Don’t tell me you are ignorant of the exponential equation too? [Mind you, most are]
zahid
i have forgotten my paasword as well as not have access to alternate id and i m using other phone number so how can i recover my paasword
salvador
BMW and Mercedes are introducing their electric cars just to show Tesla that they can make it too.
Big car companies are playing catchup.
David Ouyang
Great picture of a car. It is nice to have an ambition which might change the world.
I have heard of many alternative fuels that can run a car, such as grass clippings, algae, etc.
Which alternative fuel will take dominance? I think it is too early to tell. I hope that we will not end up with so many alternatives that we will burden the car manufacturers with building cars to accommodate all fuels. I think though that the government will choose one for us.