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

  • Is Your Business Keeping Score? Fixing Turnover At Dealerships

    If you’re a fan of the National Basketball Association, then you’re probably like me when it comes to watching games. There’s nothing more I love seeing than someone dunking over another player or sinking a three-pointer in front of a defender’s face. Now that I think of it, it seems like I only enjoy plays that are demeaning to the defense, huh…but that’s neither here nor there. As the NBA kicks off it’s 2014-2015 season, there’s one thing I can tell you that I’m not looking forward to and that’s turnovers. Turning the ball over is ugly. It’s bad for the offense and nobody likes watching sloppy play (unless you're on defense, then turnovers are awesome). The same goes for companies everywhere: turnover is bad for business. While referring to turnover, the Wall Street Journal says, “experts estimate it costs upwards of twice an employee’s salary to find and train a replacement. And churn can damage morale among remaining employees.” Now if you’re like every other business out there, you know this is a serious problem, but how can you fix it? Is turnover even fixable? The quick answer—yes. Tips For Lowering Turnover Just like the game of basketball, keeping score is essential for your business. It’s vital to keep track of the candidates you’re interviewing, what their responses are to your questions and how their personalities fit within your company’s culture. One of the best ways to do this is by using an interview scorecard, but that’s only one step towards diminishingRead post

  • How quickly can you say "YES?"

    At Autosoft we pride ourselves on customer service and have done so for over 25 years. So when a current customer’s service manager walked out without notice, the general manager was at a loss for what he was going to do. The parts manager just joined the team, the old advisor quit and the new advisor wasn’t due to start for another week. That left him with a brand new crew with no experience and a service department without the ability to wait on customers!!! Out went the phone call to the local business development manager… “can you help?” Read post

  • New Craigslist listing issue

    Craigslist has had a change in layout and search abilities for awhile but there is a major issue in their new filters. Dealerships are missing a ton of searches when a customer is filtering down the search. The image I included in this post shows how consumers now have the ability to search by type: truck, sedan, convertible, wagon, and other criteria....but a lot of dealers feeds are notRead post

  • Driving sales executive summit ....what did you think?

    I just attended my 3rd driving sales executive summit. This was by far the best one yet. We had a chance to learn from some of the best internet marketing people in the business. The keynote speakers were very informative and easy to follow.  The topics they covered were relevant and cutting edge. I especially liked the info that Jared shared with us about customer experience. He shared some eye opening information. The best way to set ourselves apart from other dealerships is to provide a better customer experience. The breakout sessions were great this year as well. I especially liked the one that Allyn Hayne from Launch gave. It was titled blurring the lines between social media and seo. It was great! He shared some of the most recent changes with google. If you did not see this session make sure that you watch the video when it is released by driving sales. While I know that this conference has an expense …it is well worth it. The time out of the store is hard as well but the...Read post

  • Auto/Mate Announces the Successful Completion of First Annual User Summit for Auto Dealers

    ALBANY, N.Y. – October 27th, 2014 –Auto/Mate Dealership Systems (http://www.automate.com) announced the successful completion of its first annual User Summit for auto dealers. Dealers and managers from around the country attended the summit on September 19th in Albany, NY. The User Summit was designed for Auto/Mate's dealer clients to learn the newest features of Auto/Mate's dealership management system (DMS), as well as best practices for implementing new technologies into dealership processes. Additionally, attendees enjoyed networking with peers and fellow Auto/Mate users.   "It was really nice to have so many of our customers in one place and to get their feedback and input on various aspects of our software," said Mike Esposito, President and CEO of Auto/Mate Dealership Systems. "The Town Hall meeting that we hosted was very informative and we came away with a greater understanding of our clients' needs than we could get in any other way."   The two most popular sessions...Read post

  • 2014 DrivingSales Executive Summit Recap

    For the sixth year in a row, DrivingSales Executive Summit (DSES) sold out to an enthusiastic and progressive-minded audience. With the Bellagio Hotel as our venue, we were all treated to an impressive main stage, plenty of space, and exquisite food catering—and, of course, the most advanced content in the industry!   Day One We began the conference earlier than ever before, kicking off at 1:30pm on Sunday, October 12th—and that's not considering our Canadian breakout session sponsored by e-Dealer, Glovebox, and SCI Marketview that started at 8:30am or the Cox Automotive brunch and panel presentation that commenced at 10:30am. DSES indeed had a packed schedule! And then, the audience was shown the 2014 DSES Kickoff Video: Introduced by event emcee, Charlie Volgleheim, the founder and CEO of DrivingSales, Jared Hamilton, provided a high-level overview of Executive Summit, what the attendees could expect from the conference, and a brief look at the auto industry as a whole....Read post

  • Stand Out by Thanking Veterans

    The spirit of the holidays is in the air. Halloween is next week and before you know it, Thanksgiving and the end-of-the- year holidays will be here. With all the excitement of these upcoming holidays, many retail companies will glaze over a very important tribute, Veterans Day on November 11th. This day of remembrance and thanks to veterans for their commitment and sacrifice to defend our nation deserves a place in your end-of-the-year marketing strategy. Here are two ways you can honor veterans, drive traffic and revenue, and STAND OUT from your competition. Offer Exclusive Veterans Savings This idea seems like a no brainer because it is! Put together valuable discounts, something you’d typically offer your most loyal customers, and advertise them exclusively to veterans and active duty military personnel who visit your store during the month of November. You could also decorate your showroom or service drive with red, white, and blue to show your support of these brave men and wo...Read post

  • Dealers Shouldn’t Abandon Third-Party Sites Just Yet

    If you've been following the trends for the last year in the automotive industry, you’ll note that there are some dealers that are pushing all of their advertising dollars towards driving traffic to their websites. It’s a strategy that was made popular when a large dealer group declared that they were going to focus on generating their own leads and wrote an interesting piece about why they were doing it. Unfortunately, the strategy that they’re adopting has been misunderstood by many. The idea is that they wouldn't be buying leads from other sites anymore. They never declared that their inventory wouldn't be available on other sites. It’s a concept that makes sense – generate your own leads, whether they’re coming from third-party sites or the dealership’s website. In an article titled, Why Car Dealers Should Adopt a Modern Digital Merchandising Strategy, we went into detail about why many consumers prefer to shop on third-party sites rather than on a dealership’s ...Read post