Why Tesla: Reasons Behind Its Greatness
Elon Musk has become the 3rd richest man, thanks to meteoric rise of Tesla’s share prices.
Recently, the news of Tesla beating the market cap of Toyota to become the world’s most valuable car company has in its bosom valuable lessons for startups.
In a mere 16 years, Tesla has upturned a century-old industry, with enormous capital and labor-intensive barriers.
Tesla’s story is quintessentially a story of how it commercialized new technology by finding business solutions.
Here are the Technology Lesson Startups and young companies can draw from Tesla, what makes Tesla so radical, so unique!
Radical Business Model
Tesla’s business model is radically different as it has woven a car around software rather than the opposite. In this way, it has disrupted the industry forever. As a startup, success is highly probable if the business model is innovative and leverages a technology trend.
- Producing Cars like Software
Like Apple, which consummates the relationship between hardware and software, Tesla has a similar approach. It improves its software every week, which means your car, gets better every week, and this stands in stark contrast to the likes of traditional cars that cannot improve.
- Leverage Advanced Technology
Tesla used big data and analytics in a big way, using data from users to improve algorithms and software. It analyzed the data and was eventually able to roll out self-driving functions in already sold cars, incredible! Startups can learn that the aggressive incorporation of technology is an essential part of a modern enterprise.
- Prove Your Innovative Capabilities
Products like Cybertruck are not in principle about making money, but they prove that the company is the most innovative in the world. Startups must display their innovative technology capabilities and attract investors’ attention.
- Invest in the Bottlenecks
Bottlenecks generally hinder the performance and bring everything down. By investing in the bottleneck, i.e. batteries Tesla has overcome its constraints at scale, also ensuring competitors have a hard time catching up. Startups must invest in the weakest link and derive sustainable business advantage.
- Charm of a Nobel and Green Vision
When the entire world is showing grave concern for carbon emissions, Tesla’s voice of a clean mode of transportation stands out. It has not been easy, but they have been the vanguards. Startups must have a vision driven by values and an ideology that stands out.
