Comments on: Tesla – Electric Car Manufacturer – Makes a Profit! But What Are the Greater Implications? http://www.triplepundit.com/2009/08/tesla-%e2%80%93-electric-car-manufacturer-%e2%80%93-makes-a-profit-but-what-are-the-greater-implications/ Business, Better. Since 2005 Fri, 10 Feb 2012 07:33:00 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Markhttp://www.triplepundit.com/2009/08/tesla-%e2%80%93-electric-car-manufacturer-%e2%80%93-makes-a-profit-but-what-are-the-greater-implications/comment-page-1/#comment-15404 Mark Sat, 15 Aug 2009 00:08:10 +0000 http://www.triplepundit.com/?p=10336#comment-15404 I think Tesla is a bit of a special case. Tesla was and is different to previous EV companies in that there was always a plan to make a profit. The save the world motive was simply considered a nice bonus. If Tesla's success has wider implications it's that it's 'business' approach has generated others to follow like GM and the Volt, Fisker and the Karma and now Nissan\Renault. I think this kick start of the EV industry will be what Tesla is remembered for regardless of Tesla's own fate. I think Tesla is a bit of a special case. Tesla was and is different to previous EV companies in that there was always a plan to make a profit. The save the world motive was simply considered a nice bonus. If Tesla’s success has wider implications it’s that it’s ‘business’ approach has generated others to follow like GM and the Volt, Fisker and the Karma and now Nissan\Renault. I think this kick start of the EV industry will be what Tesla is remembered for regardless of Tesla’s own fate.

]]> By: deanohttp://www.triplepundit.com/2009/08/tesla-%e2%80%93-electric-car-manufacturer-%e2%80%93-makes-a-profit-but-what-are-the-greater-implications/comment-page-1/#comment-15364 deano Fri, 14 Aug 2009 14:40:49 +0000 http://www.triplepundit.com/?p=10336#comment-15364 For me, the BG article didn’t seem to go way overboard in reaching for broader conclusions, although they did introduce Musk’s quote somewhat disingenuously.Looking at the Tesla press release, it seems Musk is speaking specifically to the company’s performance and not saying anything about the broader market appeal of EVs:“We achieved a bottom-line profitability thanks to a tremendous amount of hard work by the Tesla team to improve quality, while simultaneously reducing costs on the Roadster,” said Tesla CEO and Product Architect Elon Musk. “This also shows that there is strong demand for a car that is unique in offering high performance with a clean conscience. Moreover, customers know that in buying the Roadster they are helping fund development of our mass market electric cars.”Would anyone – even Elon – suggest current Tesla customers are representative of the mass market for autos? Actually, the final line says an influencing factor for buyers is to help fund development – that’s not typical mass consumer behavior.Tesla has fresh funding, is opening new retail outlets & is developing more affordable models. The only implication of their profitability announcement that isn’t a leap of logic is… Tesla is currently optimistic about their prospects, at least in their luxury niche. The bigs will have something to say about how they fare in the mass market.And yes, whoo hoo. For me, the BG article didn’t seem to go way overboard in reaching for broader conclusions, although they did introduce Musk’s quote somewhat disingenuously.

Looking at the Tesla press release, it seems Musk is speaking specifically to the company’s performance and not saying anything about the broader market appeal of EVs:

“We achieved a bottom-line profitability thanks to a tremendous amount of hard work by the Tesla team to improve quality, while simultaneously reducing costs on the Roadster,” said Tesla CEO and Product Architect Elon Musk. “This also shows that there is strong demand for a car that is unique in offering high performance with a clean conscience. Moreover, customers know that in buying the Roadster they are helping fund development of our mass market electric cars.”

Would anyone – even Elon – suggest current Tesla customers are representative of the mass market for autos? Actually, the final line says an influencing factor for buyers is to help fund development – that’s not typical mass consumer behavior.

Tesla has fresh funding, is opening new retail outlets & is developing more affordable models. The only implication of their profitability announcement that isn’t a leap of logic is… Tesla is currently optimistic about their prospects, at least in their luxury niche. The bigs will have something to say about how they fare in the mass market.

And yes, whoo hoo.

]]> By: Shel Horowitz - Ethical Marketing Experthttp://www.triplepundit.com/2009/08/tesla-%e2%80%93-electric-car-manufacturer-%e2%80%93-makes-a-profit-but-what-are-the-greater-implications/comment-page-1/#comment-15355 Shel Horowitz - Ethical Marketing Expert Fri, 14 Aug 2009 11:03:43 +0000 http://www.triplepundit.com/?p=10336#comment-15355 If my math is right, that's about $200,000 cost per car. Not exactly a sustainable model or one that has implications for the broader auto industry, any more than Ferrari does.Shel Horowitz, award-winning author of Principled Profit: Marketing That Puts People First, http://www.principledprofit.com, and co-author of the forthcoming Guerrilla Marketing Goes Green If my math is right, that’s about $200,000 cost per car. Not exactly a sustainable model or one that has implications for the broader auto industry, any more than Ferrari does.

Shel Horowitz, award-winning author of Principled Profit: Marketing That Puts People First, http://www.principledprofit.com, and co-author of the forthcoming Guerrilla Marketing Goes Green

]]> By: Jim-Bobhttp://www.triplepundit.com/2009/08/tesla-%e2%80%93-electric-car-manufacturer-%e2%80%93-makes-a-profit-but-what-are-the-greater-implications/comment-page-1/#comment-15303 Jim-Bob Thu, 13 Aug 2009 17:00:13 +0000 http://www.triplepundit.com/?p=10336#comment-15303 Yeah Sean, I agree! Yeah Sean, I agree!

]]> By: Seanhttp://www.triplepundit.com/2009/08/tesla-%e2%80%93-electric-car-manufacturer-%e2%80%93-makes-a-profit-but-what-are-the-greater-implications/comment-page-1/#comment-15294 Sean Thu, 13 Aug 2009 13:20:14 +0000 http://www.triplepundit.com/?p=10336#comment-15294 Looking at Tesla in a vacuum, perhaps one could be cynical about the pending explosion of electric cars. Looking at the big picture, however, it's apparent that Mr. Musk's opinion carries more weight than Wired.com's myopic "scrutiny." Japan, Europe, Australia and yes, even the U.S. are participating in rapidly growing electric car development. Companies you may have heard of like GM, Ford, Nissan, Mitsubishi, BMW, Volvo and Toyota are all building electric cars. Electric cars will dominate. Just briefly take a look outside your little playground to see the bigger world picture. Looking at Tesla in a vacuum, perhaps one could be cynical about the pending explosion of electric cars. Looking at the big picture, however, it’s apparent that Mr. Musk’s opinion carries more weight than Wired.com’s myopic “scrutiny.” Japan, Europe, Australia and yes, even the U.S. are participating in rapidly growing electric car development. Companies you may have heard of like GM, Ford, Nissan, Mitsubishi, BMW, Volvo and Toyota are all building electric cars. Electric cars will dominate. Just briefly take a look outside your little playground to see the bigger world picture.

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