Saturday, April 27, 2019

City Of The Future: Singapore

Is Elon Musk Just Getting Started?

When Elon Musk open-sourced the hardware specifications for the Tesla a few years ago, people were like, what a nice guy, out to save the planet! I don't doubt he is a nice guy. This is a guy who suffered in South Africa, in an apartheid era where white was brutal over black, braun was brutal over brain, Elon was brain. I don't doubt his passion to combat climate change.

But it also was a good business move. Great, actually. He wants to do what Microsoft did. He wants to do the work on the hardware, but scaling hardware is not fast enough. He wants everyone to build the hardware part. He just wants Tesla to be a software company. And he wants Tesla software running all or most electric cars. He wants to do Windows, he wants the Dells of the world to make the cars. 

It would be hard, if not hard then definitely slow, for Tesla to manufacture a billion cars. That part is best outsourced. Completely outsourced. But putting software into those cars and regularly updating the software; now that's scaling. Also, the supercharger stations network. 

The numbers are mind-boggling. You buy a Tesla, and then there is no oil change. You don't have to buy gas. The charging is free on the network. Just the money you save on gas will pay for the car in a few years. But wait, you can buy your car and for the 23 hours that you don't need it, you can let it join a Uber type network. So you actually make money. 

Dirty cars could disappear so so fast. A pure software play powering a few billion cars manufactured by others makes Tesla a trillion dollar company, the fastest company to hit that mark in world history. 

Detroit could make a comeback just making cars whose design Elon Musk has open-sourced. You are good at hardware, keep doing hardware. Let Elon worry about software. Let a thousand flowers bloom. Let cars be manufactured locally on every continent. 


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