Tesla’s Full Stack Disruption
Credit to Author: Cynthia Shahan| Date: Mon, 13 Jan 2020 03:49:39 +0000
Published on January 12th, 2020 | by Cynthia Shahan
January 12th, 2020 by Cynthia Shahan
Tesla concepts of mobility outgrew legacy brands from the day the first Tesla rolled onto the market. The new company did not fit into any existing auto-manufacturer slot. Tesla jumped away from the crowd conceptually, and landed on its feet.
Matt Pressman, cofounder of EVANNEX, has noted how Tesla’s “full stack” approach has disrupted the auto industry. Quoting Silicon Valley venture capitalist Chris Dixon, “The old approach startups took was to sell or license their new technology to incumbents. The new, ‘full stack’ approach is to build a complete, end-to-end product or service that bypasses incumbents and other competitors.”
Thus, in a similar business fashion as Apple, but beyond that, Tesla is distinctly more involved with all of the things related to Tesla vehicles — battery factories, vehicle factories, stores, charging infrastructure, and much more.
The full stack disrupt may have come from sheer need originally, not simply priming for more profits, but the latter has tagged along with the innovation.
The Spring also notes Tesla’s atypical automaker business model by emphasizing the potential of Tesla Services.
Starting with the most obvious, Tesla produces much of the hardware in its vehicles — body panels, battery packs, seats, electric motors, computers for Full Self Driving capability, infotainment systems, and even the air condition vent system.
Creating so much of the hardware itself, Tesla can make sure it all works and plays well together. Tesla can also quickly iterate and change products if needed. Tesla is known to be constantly improving its vehicles.
Rather than farm it out to Apple or Google, Tesla is fully in charge of the software going into its infotainment systems, Autopilot, app, and even how the windshield wipers work. Tesla is also building a neural net system that is expected to help Tesla vehicles drive themselves better and better over time, and soon hopefully more safely than a normal human.
One of the latest services Tesla has gotten into is insurance. Since insurance companies don’t typically account for the greater safety of a Tesla, and may not understand the costs well, Tesla started offering insurance to owners in California. The option seems to be going well, but many hypothesize that Tesla will eventually be able to offer totally unmatched insurance packages due to the data it collects. For more on this topic, see our Tesla Insurance archives.
Tesla’s business model embodies service in a fresh way, just as it looks at the entire vehicle ownership experience in a new light.
Sometimes Tesla’s mobile service comes directly to an owner’s place of work or home to do repairs. Tesla Model S mobile service ranger van, by Kyle Field.
Tesla Service EVs in Florida, by JRR | CleanTechnica.
Tesla service is a no-profit enterprise. CEO Elon Musk has said adamantly a handful of times that he doesn’t want service to be a profit-motivated part of the business, since that incentivizes fixing problems that don’t exist of creating problems to fix.
As with all things, Tesla strives to leave the customer happier when they leave than when they came in. This Tesla owner below — of two Teslas — still seems content despite his inconvenience. He is still smiling about his Teslas.
Below is a Tesla service video from Tesla itself.
In the past, you bought cars from auto manufactures and another business altogether handled refueling, allowing big oil companies to make absurd profits. How wonderful to put an end to all of that. With a Tesla, you can take practically any road trip in the United States, Europe, and some other markets using only Tesla Superchargers.
Tesla is also the fuel station infrastructure for its buyers, providing lightning fast Tesla Superchargers. Of course, EVgo, Electrify America, Clipper Creek, ChargePoint, and a slew more companies are out there. Yet, for Tesla drivers, the Tesla Supercharging network is tops.
Tesla’s mission is to accelerate the world’s transition to sustainable energy.
🌞⚡🚗🔋
(a thread)
— Tesla (@Tesla) May 9, 2019
Charles Morris explains that Tesla’s Vertical Integration was not sought out there initially. Yet, it is here to stay. The ecosystems of Tesla have become something quite opposite of the ecosystems of the fossil vehicle manufacturers. Tesla’s new concepts of electric mobility combined with ever expanding software glide Tesla in another direction than other automakers.
Had Tesla been merely a great battery company or a software company within the auto industry, disruption would have been in bits and pieces — not terrifically market changing and planet changing. Tesla’s full stack integration creates a very different reality.
Check out “Thousands Of Electric Vehicle Owners Told Us This ….”
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Cynthia Shahan Cynthia Shahan started writing by doing research as a social cultural and sometimes medical anthropology thinker. She studied and practiced both Waldorf education, and Montessori education. Eventually becoming an organic farmer, licensed AP, and mother of four unconditionally loving spirits, teachers, and environmentally conscious beings born with spiritual insights and ethics beyond this world. (She was able to advance more in this way led by her children.)