What is Elon Musk doing? Would you do that? I am talking about his business, Tesla Motors, and what was released on his blog yesterday: All Our Patent Are Belong To You. Huh? Quite simple:
"Yesterday, there was a wall of Tesla patents in the lobby of our Palo Alto headquarters. That is no longer the case. They have been removed, in the spirit of the open source movement, for the advancement of electric vehicle technology.
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."
I think that this is clever. Why? Because if Tesla release their patented technology to the folks that produce huge numbers of vehicles and have massive production facilities that will provide run of the mill motor vehicles (the ones we like to drive in this office) then where does that leave Tesla? As a luxury goods manufacturer in the industry. BMW have great margins, relative to their peers. Ironically Hyundai have very good margins too.
But Toyota, General Motors and Volkswagen (better than the first two) have much lower margins. But this is where I think it will be awesome for Tesla.
Tesla will be the winners in the luxury market, where the most profitable parts of the automobile market are. And the more people who drive "ordinary" motor vehicles with battery capabilities, the bigger the pool is for the luxury market eventually.
And of course, I do genuinely believe that Musk has the planet and the collectives best interests at heart too, he confirms in the blog that Tesla will benefit.
"We believe that Tesla, other companies making electric cars, and the world would all benefit from a common, rapidly-evolving technology platform."
I agree. More motor vehicles that are electric means that Elon Musk did what he wanted to do. Wiki says that he works 100 hours a week. Yowsers. That means 7 days a week for 14 hours and 15 minutes, more or less. Wow. It must be hard for the family around him, five sons live with their step mom as far as I understand it. And to get home and back must take some time too, eating in-between and time for a shower too. He last had a long bath in ...... well, never. In the long run this is good news for Tesla shareholders, but not necessarily a positive immediately. The share price hardly budged.