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? 


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

  • Second Chance Money

    How many of us out there are losing out on a second chance to sell the job? You would be surprised what a Thank You letter with a coupon can do for your business 10 to 20 days after the customer has visited your store. I have been using these declined services letters for quite some time now. Currently we are averaging over $250 per RO with the system we have in place. I have used many vendors to send the letters. I also have tried it internally, but not with much success. Recently we have expanded the process using an email and a letter. I would imagine it will all be email in no time. My first question to all of you is, what works best for you? Are you using key words, labor ops or do you just have someone sorting through your ROs and pulling the clients out manually? Also, what are your road blocks? My personal one is getting my advisors to input the correct key words on a regular basis. Yes, we all know that is how they get paid, but you know what I’m talking about. Another key...Read post

  • Why Dealers Should Say "NO" to Manufacturer Reward and Pre-Paid Maintenance Programs

    On the surface, manufacturer reward and pre-paid maintenance   programs seem like a great idea to many dealers. They’re intended to increase customer loyalty and visits to the service department, thereby providing repeat business and driving revenue. Take a closer look at OEM programs and you’ll find that not only do theynot provide much in the way of benefits – but they really don’t benefit the dealer at all. Here’s why you should be saying “NO” to OEM reward and PPM programs and “YES” to developing dealer-centric plans of your own.   Manufacturer’s reward and PPM plans are not seamless and they are generic.   Obviously, manufacturers are casting a wide net when developing reward and maintenance plans: They have to appeal to a huge existing and potential customer base. It’s all about the numbers with OEM programs to attract new prospects and encourage repeat purchases. It’s not possible for them to develop robust, effective programs based on specific ...Read post

  • In Praise of a Balanced #AutoMarketing Strategy (It's about more than your website)

    I’ve made people that I actually like and respect very angry with me because I’ve questioned their belief system. No, not their religion; their belief that developing their primary website – at the expense of almost all other digital marketing – is a laudable goal. They even have data to back up the argument, but I will argue that their analysis of the data is fundamentally flawed for a couple of very important reasons – Reason Number One – Automotive is not ecommerce. They analyzie the data as if they were analyzing an ecommerce site and that will inherently lead them astray. Let’s look at the ecommerce model for moment; everything must eventually funnel into the primary website to sell the product – to gain the conversion. With automotive that is not the case. With automotive, everything must eventually funnel into the physical dealership – not the digital one. Let’s face it, we’ve been talking about the website as being the ‘Digital Showroom’ for so long t...Read post

  • Get Creative with Fall Car Care

    For many Americans, October marks the beginning of fall. For some of the country, the leaves have already started to change and the weather is getting cooler, but for the automotive industry, October is known as Fall Car Care Month. The month of October presents the perfect opportunity for Service Departments everywhere to increase traffic by reaching out to customers about needed fall maintenance. Most dealerships will be offering tips and savings to drive people into their service drives and this type of marketing is a great idea and probably much needed. But, what if you did something a little different this year? What if you decided to get really creative with your fall car care marketing? Instead of just delivering tips and savings to customers, what if you hosted targeted events at your dealership? Check out these two event ideas to promote fall car care by getting creative. Host a DIY New Owner’s Clinic This year think about hosting a DIY event in your Service Department. I...Read post

  • Differentiate--or Die!

    Anyone can buy a white Chevy Malibu from any dealership, so how do you get people to buy from your dealership? If you think you must offer the best price, think again. According to marketing gurus Jack Trout and Steve Rivkin, co-authors of the book Differentiate or Die: Survival in Our Era of Killer Competition, the most successful businesses differentiate their brands, but not on price.   I know many dealers out there will disagree with me. When I was a General Manager I had this argument with the owner all the time. "If you treat the customers better, whether it's in sales or service, they will pay more for the car." The owner believed we had to be more competitive on price, but I saw it time and time again. Customers bought from us because they liked the way they were treated, not because we offered them a rock-bottom price.   So, how do you decide what your dealership's differentiator is? Here are key tips from experts Trout and Rivkin:   Don't Differentiate on Price, Qua...Read post

  • Community events= Grass roots advertising

    Our dealership has always been somewhat active in our local community events. We have always supported local charities. we made a decision a year ago to continue this and actually ramp it up. We also decided that every event that the dealership supported should have one of our staff members present. we purchased a tent and lots of swag to give away! We also decided to make sure that we play this up in social media.  We feel that our efforts have been a success. This is however extremely hard to measure! Our Facebook audience has grown a lot but I can only tell you of a few people that we have sold cars too that we met at an event.  This a link to a landing page that we created to hilite some of the  events that our Hyundai store has been involved with.   This is a link to the latest community event that we held. post

  • If You Can’t Keep What You Have, Getting Bigger Isn’t Going to Solve Anything

    There is little doubt in anyone’s mind that the millions of recalls are going to increase the demand for technicians while straining existing franchise dealer’s service departments. Manufacturers are desperately trying to convince dealers to take on expensive expansion projects in their service departments in an effort to avoid losing service business to independents. To this point, according to an article in Automotive News, FCA US announced that it will be launching on online analyzer that will allow dealers to calculate the potential revenue increases of additional service capacity and technicians. Dealers will be able to play with variables such as number of bays, technicians as well as toggle shift lengths to see whether the expenses involved will be fruitful. Of course, with the massive amount of available recall work in and of itself, my guess is that the calculator is pretty much going to show numbers in the  black in most instances. The one piece of this article that real...Read post

  • Helion Automotive Technologies Saves Mossy Auto Group Over $400K by Upgrading IT Infrastructure to 21st Century Specifications

    Timonium, MD -- September 28th, 2015-- Helion Automotive Technologies, a leading provider of IT solutions for auto dealers, today announced that Mossy Automotive Group has saved over $400,000 since implementing the Managed Service Provider's (MSP) data and network recommendations. The San Diego based 14-store automotive group attributes the majority of its savings to switching data and phone carriers, and upgrading its entire information technology (IT) infrastructure.   Like many auto groups that have grown gradually over the years, Mossy Automotive Group's IT infrastructure was not always a high priority. “We have 1,200 employees using over a thousand PCs,” said John Epps, Chief Financial Officer (CFO) of Mossy Automotive. "For years we added equipment on an as-needed basis, so our network was a literal hodge-podge of PCs, operating systems, network connections and off-the-shelf software."   In 2013, the auto group was expanding at such a pace that the internal IT staff ha...Read post