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(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

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