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.

Jun 13, 2014

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.

Jun 13, 2014

"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.

Jun 14, 2014

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.

Jun 16, 2014

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

  • Customer Experience Study Identifies Expectation Gap Between Dealers and Consumers

    We at DrivingSales recently concluded a very thorough customer experience research study revealing clear indicators that trust and transparency are paramount for sales growth and future success in automotive retail. Read post

  • Social Media, the Puppy

    My wife recently decided it was high time to get a pet dog for the family. I had been delaying this decision since my wife and I first moved in together (years and years ago). I just wasn’t ready for the responsibility. (And, on top of that, I’m allergic). Nonetheless, almost 15 years and two sons later, I acquiesced and began researching a suitable breed. Long story short, we decided upon a Havanese. We researched breeders, investigated, awaited a litter, and picked up our new puppy.  Cute as can be, I realize that this ball of hair will be essential to the growth and development of my children. But these first few weeks have been a lot of work. To tie this together, I was recently honored to have been hired by Jacuzzi corporate to speak at their International conference on the subject matters of lead management and process improvement. Even though I was the one to be dispensing knowledge onto the audience of franchise owners and manufacturer reps, I was able to walk away with m...Read post

  • Reviews...how much do they really help

    We really push getting reviews on  the sales side. We use Dealerrater and also push people to do reviews on google plus. We average about ten a week. We do the ocasional spiff for reviews but do not do it all of the time.   My question for the community is does this really help the dealership? We have a person that is responsikble for responding to every reciew....good or bad. We recently one dealer rater dealer of the year  for Florida (Hyundai).   I am also wandering if these have any seo value as well.   ...Read post

  • Will Boomers and Millennials Ever Understand Each Other?

    Millennials are often misunderstood by Baby Boomers creating difficult situations when hiring and retaining the 25 to 34-year-old age groups. Why is this? Will Baby Boomers and Millennials ever understand each other or will cohesion and understanding help your business? Find out in this passionate post by Grant Gooley.Read post

  • Creating an Excellent (CX) in your Store

    A recent quarterly digital intelligence briefing from Adobe and Econsultancy titled Digital Trends 2015 outlining the most exciting opportunities for your organization, ranked Customer Experience as number one for the second straight year. The study was conducted on more than 6,000 marketing, digital and ecommerce professionals around the world ranking things like content marketing, mobile, social, big data, personalisation, location based services  and more. Customer Experience or (CX) as a theme has increased the gap from 2014 between things like mobile and social. Last year 20% ranked (CX) as the most exciting opportunity and the number has increased in 2015 to 22%. It is clear that in the coming year we will see a ton of activity in this area, so how can your dealership ensure an excellent (CX)? Customer Experience is defined as is the sum of all experiences at various touch points a customer has with a supplier of goods and/or services, over the duration of their relatio...Read post

  • The Fruit Fly

      Fruit flies are pests that are found in homes, restaurants and grocery stores - anywhere there is fresh produce present. They are attracted to rotting or fermenting fruit on which to feed and lay their eggs, and they are relentless and near impossible to get rid of once they have found a home.   Fruit Flies Everywhere! Several years ago, I noticed that I was increasingly trying to shoo these pests away from my face at meals, or just walking through my kitchen every day.  The fruit fly situation became unbearable.  I made several trips to the store to purchase flying insect killer. I purchased several brands, and they all seemed to take care of the problem at varying degrees. I would then spend the next few minutes cleaning up the mess of dead fruit flies and foul smelling insect killer. Well, this went on for days. Every day, I would arrive home, spray with vigorous purpose and clean the mess - only to have to do it again, day in and day out. After a week or so, I realized...Read post

  • 6 Things You Should Know About Email Marketing

    Of all the marketing methods, both conquest and customer, email is the most cost effective and returns the highest return on investment than any other channel. Of course this is only true if you know these six tips to get the most out of your email marketing. Subject Lines Did you know 33% of recipients open an email based on the subject line alone?1 Think of the subject line as your email’s headline. It should be brief, no more than 35-40 characters in length, for easy viewing on a mobile device. The content of your subject line should provide actionable information that represents the major content of your email. Always avoid using strong promotional attributes like multiple exclamation points or words in all caps. If you’re unsure of your selected subject line, test a couple out to determine which one receives the most opens. From Line Did you know 70% of people open emails from their favorite companies?2 This exact reason is why it is very important to use your dealership’s...Read post

  • Hiring the right people is easier then you think.

    Your best prospects for future success will be those who closely match the best of what you already have. Gain an understanding of what keeps these people motivated and performing at peak ability. These are the traits you will need to advertise and hire for.Read post