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Why tesla motors is opeaning all of its patents?

1 pointsby easynamealmost 11 years ago
I was discussing with my father about Tesla Motors opening all its patents for everyone. And Elon's gigafactory plan. And suddenly I felt how both the business move is connected. By the time other companies will be rolling out a better battery powered cars. Elon will be leading the manufacturing of batteries throughout the world!

1 comment

higherpurposealmost 11 years ago
You thought of it from &quot;won&#x27;t this let its competitors catch-up and beat Tesla?&quot; point of view, and yes the correct answer for that would be that Tesla is already ahead of everyone else.<p>But there&#x27;s another point of view, that the release of patents will accelerate both the supply and demand of electric cars <i>in general</i>, which means Tesla will also gain, especially if they remain the leader. The market leader always wins the most when &quot;all boats rise&quot;, because the leader will rise the highest.<p>Then there&#x27;s the fact that Tesla is trying to get other car manufacturers to license its Supercharger Network. This has 3 effects, all beneficial to Tesla:<p>1) lowers costs for Tesla, while it allows them to expand faster the network faster globally<p>2) as the network grows, Tesla will become more entrenched as an electric car market leader, since it will be harder and harder to create &quot;competing&quot; networks<p>3) a standard network will be beneficial for everyone, it&#x27;s hard enough to promote electric cars without solid infrastructure, so why have competing networks, when all manufacturers can build just one, and Tesla&#x27;s network also happens to charge the fastest, plus it offers its customers the ability to have &quot;free charging for life&quot; thanks to the solar power.