If you were the CEO of a market-leading company with advanced, sought-after technology, would you share that information with others in your market? That is the decision Tesla CEO, Elon Musk, has recently made. The Tesla Model S, with their laptop-size battery, outsold every other electric car through May, 2013 and has continued to be a leading source of car dealers in California. In his blog on June 12, 2014 Musk announced that they were releasing their patents “in good faith” to anyone who wants to use their technology.
This decision is monumental for the electrical vehicle industry, however could be a risky one for Tesla. On one business side, this was a wise decision. Their company will continue to flourish if other electric car manufacturers adopt the same infrastructure. If we think in the case of phones, we often experience compatibility issues with chargers (I know you other iPhone 5 users can relate!). So, Tesla sharing their information could decrease these issues and allow EV (electric vehicle) distribution to be more successful. On the other hand, this could clearly hurt their sales if other automobile companies surpass them. However, this does not seem to be much of a concern to Musk as he expressed in his blog, “Our true competition is not the small trickle of non-Tesla electric cars being produced, but rather the enormous flood of gasoline cars pouring out of the world’s factories every day.”
As the Tesla CEO explains further in his blog, the goal of their company was to provide sustainable transportation to diminish the carbon crisis. Expressing his dissatisfaction in the small number of EVs being produced by other companies, Tusk believes that keeping their lucrative technology to themselves would counter their initial purpose. Personally, this move by Tesla impresses me because they aren’t necessarily concerned with being a big fish in a little pond, but rather accelerating the production and global adoption of EVs. Could this potentially be game-changing not only for the electric vehicle industry, but also the automobile industry as a whole?
To check out the Tesla Model S click here