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Tesla's "new" business opportunities

Tesla's "new" business opportunities

With the model X launch and Autopilot, these are exciting times for both Tesla and TSLA.
I wanted to compile here some new possible business avenues that you may or may not already have heard of:

- selling maps for Autopilots to other automakers.
Tesla is building an essential tool for Autonomous driving: good road maps. No matter which piece of software a carmaker will use, it will need a road map database. This is compatible with any autonomous software.
So in the same way that Tesla can sell Supercharger use to other automaker, he can sell access to its maps. By doing this Tesla keeps the same advantage as sharing the Superchargers: no competition.

- selling the full Autopilot software.
While Google has certainly a great autonomous software they, in my opinion, made a mistake by not using an iterative approach. Tesla step by step approach can give confidence for many automakers to buy a software which is more conventional and will only improve with time.

- a more exclusive Uber competitor
I read a thread on this forum about owners willing to use their model S for Uber X. But if they do so, they loose their guaranty. And the money is not great.
Tesla could easily develop an app, embedded into the car that compete with Uber X. But with the SolarCity approach of providing a full solution. This service will include a special guaranty so a model S owner just have to push a button to start participating. Tesla has less cars on the road but fans will be happy to wait a bit more and pay a bit more. Also Tesla can afford to only take a tiny commission. Why? Because all these drives are like a giant test drive system for future clients. It will boost also the Referral program. Tesla owners will not be mere cab drivers, but salesmen on the road.
And by doing this program, Tesla suddenly make the ownership experience of a Tesla more affordable, as your car can give you back some dollars.
Now imagine the same but with the more taxi-like Model X!

- a full autonomous Tesla taxi network
Not right now but in a few years, Tesla can start a fully autonomous Taxi fleet. Either with its own cars or with a mix of its own cars and owners cars willing to lend their car while they don't need it.

It's just my opinion but Tesla has a great future!

maxr | 23 octobre 2015

Oh and did I forgot the Ferrari like bags and luxury goods market? Tesla has a much better brand than Ferrari.

sule | 23 octobre 2015

Well, some comments:

Autopilot is said to not use maps as things change. It may be learning, though, some other location sensitive things compliments of Tesla.

Autopilot software is primarily Mobile Eye, not Tesla. They are already selling to other manufacturers.

I don't see fully autonomous cars any time soon, by any manufacturer, anywhere on public roads, other than for testing with a human overseer present at all times.

david | 23 octobre 2015

@maxr

As a stock owner of Tesla there were many things that brought me to the conclusion to invest in the company before I buy the car next.

Being an Uber competitor was not one of them. It would be a huge mistake. Spending a lot of time in Manhattan I am very familiar with Uber/Lyft/Gett/Via. They are not and won't be car companies for a long time. Way too much entropy and chaos on the streets to trust a computer with the responsibility and liabilities of fully operating a moving vehicle.

Also, Uber, Lyft etc cannot even predict what side of the street you are on. That is why they give you each others phone number. The technology is still far off for autonomous taxis operating in Gotham.

Additionally, when Uber gets into making its own cars or teaming up with a car make those vehicles will look nothing like MS or MX or M3. They will be similar to bubbles on wheels with maximum interior space. If you can remember the old hacks - along those lines.

You refer to customers being happy to pay more. It does not work that way here. Hence Via doing $5 trips flat fee and the race to the bottom. People here want to be moved fast, efficiently and inexpensively. Getting into a cab is a necessary evil. I still prefer the subway when it affords itself to my transportation needs.

I just don't see it ever happening. I think Tesla would be smart concentrating on fixing current issues, and following up on current promises. That should take 100% of their time, attention, and funds. You need to build the foundation and make sure it is as perfect as possible before you build the house.

maxr | 23 octobre 2015

@david

I was more thinking of a competitor to Uber Black, the high-end offer but as open as Ubex X to join the program.
Also talking about having the owner as a pilot, for now. We all agree that full autonomous is a few years from now.

dougk71 | 3 décembre 2019

Auto insurance is very very profitable. With a car it costs money to make it before you can sell it and get the money back plus a 20% profit.
. Insurance is cash up front and pay only if there is a claim. Tesla insuring Tesla's is an obvious cash cow given Tesla's are safer and Tesla has the minute by minute statistics coming from its insured drivers.
Sure FSD gets Tesla a one time $7000 but Insurance could get up to $1,000 per year year after year.