Tesla is looking to fundamentally re-imagine the concept of auto ownership and, in the longer term, the energy storage and distributions markets.
A combination of innovation, brand, vertical integration and first-mover advantage has resulted in a powerful cocktail of competitive edges for Tesla. Tesla makes almost all of its components in-house which means that it can iterate quickly and withstand supply chain stocks, while its ‘software first’ mindset has the potential to unlock opportunities in new areas such as autonomous driving and personalised insurance. The company is managing to produce vehicles faster than even the most sophisticated incumbent auto-production lines.
If the exponential trend in production that Tesla has enjoyed over the last five years continues, over a decade they could produce upwards of 10 million cars and trucks a year and command a vast share of the global market. Add to that the integration of their manufacturing expertise into energy storage, plus revenues from autonomous driving software licences, and it’s plain to see the long runway of upside for the company.
Elon Musk is undoubtedly an extraordinary leader with a clear vision, notwithstanding his share of media controversies. His success has forced a response on the part of automotive incumbents and accelerated the transition to electric vehicles globally. The success of Tesla from here is not just dependent on Musk, though. The robust board around him and the dynamic individuals on the manufacturing team are also key.
in June 2013.
Musk focuses on improving his factories as much as the cars themselves. He is obsessed with optimising ‘the machine that makes the machine’.
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Image Credit - © Tesla Inc
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