Community

Share your automotive expertise

2 Write a Blog Post

(Video) Tesla Releases Patents: Who Stands To Benefit?

By DrivingSales News on Jun 13, 2014

Tesla Motors, the electric car company run by Elon Musk, made a huge announcement earlier this week, saying that they will allow other car manufacturers to use some of the technology that goes into their electric vehicles, all in the name of putting more electric cars on the road.

What Tesla is doing is opening the patents that protect their technology to other players in the market. In a blog post on the official company blog, Tesla Founder and CEO Elon Musk said,“Tesla Motors was created to accelerate the advent of sustainable transport. If we clear a path to the creation of compelling electric vehicles, but then lay intellectual property landmines behind us to inhibit others, we are acting in a manner contrary to that goal. Tesla will not initiate patent lawsuits against anyone who, in good faith, wants to use our technology.”

Some are hailing Musk as a hero, others see this move as strange. However, his motivation behind this is clearly to get more electric vehicles on the road, as fast as possible.

Dana Hall of the San Jose Mercury News quoted Elon Musk on Twitter and it’s clear that Musk is somewhat motivated in his decision making, by concerns with climate change. Musk reportedly said, “I don't quite think people appreciate the urgency. Or the inertia,” referring again to climate change.

Some wonder if this is simply a brash corporate move. The speculation is, if there are more electric vehicles on the road that run off of Tesla supercharger stations, essentially Tesla would have made their technology standard, a move that would likely pay off financially.

We will keep you updated on this story as we find out in the coming days and weeks who makes use of tesla’s technology and what they do with it. 

What do you think of Tesla's idea to open up their technolgy to other parties? 

Comments

What do you think the person that owned the very first fax machine did.........................

The company selling fax machines needed a tribe before they could spread the product. Very similar to Tesla's approach. Charging stations = interest = more sales.

June 13th

Great report dave. I personally think tesla is going for a platform play with the charging stations and obviously looking to drive more interest in electric cars.

He is a smart dude, but he does represent a threat to the current dealer body.

June 13th

"Given that annual new vehicle production is approaching 100 million per year and the global fleet is approximately 2 billion cars, it is impossible for Tesla to build electric cars fast enough to address the carbon crisis." While it is brilliant business strategy, I think what drives Elon Musk is impacting the status quo and provide the world with something amazing. I agree with you Jared, he does represent a threat to the current dealership model. Let this be a warning bell for every retail automotive person to get their butt in gear and adapt.

June 14th

Everyone stands to benefit, just some more than others. Toyota for example must be cringing over the patent release, as their long, long hard work of being the first out of the gate is negated significantly. On the other side of the coin, if you are Volkswagen or Mazda; you just won the lottery. Someone else did all the work you weren't able (or possibly) willing to accomplish.

The most important point however, is that Execution is Everything. Information is only useful if you actually do something with it.

It will be very interesting to see how this plays out in 2-3 years time.

June 16th

Comments 1 - 4 of 4

You must be logged in to comment

Login Create an account

Add your comments:

   

DrivingSales News' Recent Posts

Related Posts

  • Put a Fork in Your Dealer Facebook Page?

    A post from Forrester Research paints a pretty bleak picture; Facebook posts from top brands on Twitter and Facebook reach just 2% of their followers. Engagement is even worse: Only 0.07% of followers actually interact with those posts. And recent changes by Facebook portend an even worse future. Face it, Facebook is now Pay-to-Play. Recent research from AutoTrader says “only two percent of consumers indicating that social media had any influence on what they purchased” and “only seven percent of new vehicle shoppers visit the Facebook page of the dealership they buy from prior to purchasing a vehicle.” What to do? If you have a dealership Facebook page right now and it’s working well for you, don’t change a thing! If you have been thinking about adding a page, I’d really take a hard look at the potential R.O.I. If I was a salesperson at a dealership. I would be all over Facebook. Some of the MOST successful sales folks I know have a strong presence and they are sell...Read post

  • How to attract the best sales help.

    If your business is seeking the best candidates in the market you are going to have a lot of competition, especially in sales. So what are these talented people looking for in choosing their next employer? Two things a base salary and flexibility of schedule to fit family needs. 75% of present sales people surveyed cited these two issues and being the most important in selecting their next employer. These even were ranked higher than income potential. If you are looking out at your sales floor and thinking how do I get the best in my community to work here, consider staffing to a level that lets you cover your business and give time off and implementing a base salary with bonus.Read post

  • Are You Collecting Your Rent?

      As I was discussing some plans about moving into 2015 with some colleagues, the thought occurred to me that there are varying opinions in our industry about “price” and “turn,” and I wanted to take a simpler step towards the conversation. Every dealership has a finite number of spaces outside, and unless you are buying the lot next door from WaWa, it’s going to stay that way. The way I see it, the cars you purchase or trade to put in those spaces owe you rent. Whether you floor plan or own the inventory, the car itself is irrelevant. Each one of them is costing you money. The average “holding cost” or Fixed Cost per Vehicle per Day averages out to $28 a day. I’ve found this number in a couple places including an NADA post from 2012 as well as this one by NCM.  You may disagree with that exact number… well, that's okay. Let's just get back to the “owing you rent” part. Example: You have 50 spaces outside and every one of them has a vehicle sitting in it...Read post

  • Are you ALL IN or ALL OUT?

    Change is inevitable and shouldn't create to much confusion or havoc, although If you are like many of the dealerships I speak to, recent change in technology is causing disruption due to incorrect interpretations, reactive planning and environments that don't breed change. All things that can be corrected to ensure your culture is pointed in the right direction in 2015! Read post

  • How to start your job search

    Here is the daily hiring and getting hired tip: When it is time to find a new job start early and get help. You are most marketable when you are already working. So always be seeking your next dream job. How can you do that, while you are already working full time? Get signed up with a recruitment firm in your field. Make sure they have experience in your industry. Good firms do not charge workers for placement in positions, and will know about job opportunities that aren't even advertised. When you give your information to a recruitment firm they keep it confidential until there is a serious intention to take a job, even from potential employers. You can work at trying to be as successful as possible in your current job, and have a team of professionals marketing your skills to other employers.Read post

  • Email Conquest Marketing Guide

    Every business needs customers, right? Keeping customers loyal to your business and ensuring they come back to you for future purchases involves a retention marketing strategy. Although this type of strategy is incredibly important and needed for a successful business, today we are going to focus on developing a conquest marketing strategy. Now I know what you’re thinking, “You tell us all the time - it costs five times more to acquire a new customer than to keep an existing one.” This is a very true statement; however, there comes a time for every business when you have to look outside of your current database and acquire new business to grow your current customer pool and increase revenue. What if I told you that acquiring new business doesn’t have to be so costly? In fact, dealers who use OneCommand’s conquest email solution have seen a $15 return on investment for every one dollar spent. Today I’ll share a cost effective conquest marketing strategy that brings addition...Read post

  • Impress top candidates in your community

    Here is the daily hiring and getting hired tip: Want to impress top candidates in your community, start with your employment page on your own website. Always be hiring! Take the time to detail the benefits of working at your store like income, work environment, flexible schedule. Highlight some key employees with tenure, and give descriptions of each of the positions in your store. Even if you are not actively looking at the moment give the community the ability to pursue a position.Read post

  • Brand yourself and get hired

    Here is the daily hiring and getting hired tip: How do you win a coveted job in a crowded employment market place? It is more than a good resume. In the digital age a personal branding page can put you over the top. They are inexpensive and point and click easy to make. Find one of the platforms like wix, wordpress, or one and one. Post a personal bio, professional bio, and a short video introducing yourself. Put the url in your emails, resume, and on a personal branding business card you hand out to any prospective employer. This will separate you from every other applicant with a minimal amount of extra work.Read post