Tesla Motors as example of disruptive innovation (mobility)

The context• Tesla motors tries to innovate inside an industry with

100-years old traditions, norms and processes• He based his head quarter inside the Silicon Valley • The founder is Elon Musk which founded also

(Paypal , SpaceX)• On mid-June 2014, the company has released all of

its patent holdings, claiming that open-source innovation is more powerful than anything one company could do individually.

Technical differences

• The car core is the center 17-inch touch screen infotainment system which became an industrial benchmark.• The technical specifications are impressive ( the

state of art of technology)• The system runs a Linux-based operating system• It include a 3G modem. It can receive software

updates by OTA.• In addition, a 12.3-inch fully digital instrument

cluster sits directly in front of the driver with its own NVIDIA Tegra 2 processor

Manufacturing difference• How can Tesla sell this as a standard feature in every Model S? • The company chose to change up the supply chain and borrow from the

electronic manufacturing services (EMS) model of production that is standard practice in the consumer electronics industry• Tesla is closer to being a technology company than a traditional

automobile maker• This model required Tesla to internalize much of the hardware and

software development, as well as the systems integration work• The Silicon Valley culture and the EMS approach to manufacturing were

a clear advantage for Tesla at one time but no longer make it unique

• The possibility to update software and firmware by OTA• Consider Tesla’s recall of the Model S for overheating charger plugs in January 2014. The

day the recall notice came out, Tesla had all 29,222 Model S vehicles updated wirelessly and running the new safer version of the software.

• Traditional automaker with the same problems have to take their car into a dealership for a software update.

• Since some years to biggest cost problem could became the software recalls while now is the volume.

Service differences

Powertrain difference

• Electric motor• The fuel is a microprocessor-controlled lithium battery• Each vehicle comes with a single 10kW charger and

mobile connector with adapters for 110-volt and 240-volt outlets as well as a public charging station adapter.• Tesla has made a significant investment developing

charging stations in the US (112 to date, according to the Tesla website), Europe (63), and Asia (17)• Tesla is working to drive battery costs down in anticipation

of the launch of its mass-market, $35,000 Model 3 EV sedan, which is slated to debut in 2017