Tesla – disruption in action

Posted by on Nov 18, 2014
Tesla – disruption in action

It’s often said that to enter the automotive industry, you have to be either enormously courageous or stupid – history is littered with the dreams of some amazingly inventive auto pioneers who simply couldn’t make the maths work.

So to launch a technologically revolutionary vehicle in the midst of the GFC seemed like a recipe for financial carnage.

Enter US entrepreneur, Elon Musk. Fresh from revolutionising on-line purchasing with the creation of Paypal, Elon teamed with some very clever people who were experimenting with transformative automotive technology. Elon was so inspired by their thinking that he put his money, heart and soul into the creation of a new and revolutionary car company – Tesla Motors (named for the Serbian inventor/genius, Nikola Tesla).

Tesla Motors is an organisation that has disruption at its very heart. And the hurdles it has overcome to bring to the world a practical, beautiful, high-performance, luxury electric car are amazing.

Range, quality, styling and performance are just some of them.

But the biggest challenge is that to sell Tesla cars in any number required the company to build sufficient ‘Supercharging’ stations across the US (and any other market it enters) to make recharging ‘on the run’ practical. The fact that this has been achieved in the US within a couple of years is nothing short of breathtaking.

But the reason I’m writing about Tesla is because of the way this company is changing the way vehicles are sold.

Advertising plays a big part…

But look at the pathway to purchase. Most Tesla’s are bought on-line. Click here to visit their website. And the caryard is now a thing of the past, with Tesla’s showrooms being more akin to a Mac Store than an automotive retail outlet.

Now that is disruptive! So much so that one of the world’s most iconic automotive brands, Porsche, is now playing catch-up.

It’s the kind of market disruption that we at Accelerator find completely inspiring and beguiling.

But disruption is one thing. Results are another. So how is Tesla faring on its journey to changing an industry?

The answer is in the fact that Tesla was scheduled to hit our market about 6 months ago. The only reason it hasn’t is because demand for the vehicles in both the USA and Europe has comprehensively outstripped supply.

Be clear. In the reasonably near future, both the type of car and the way you buy it will look like Tesla.