Elon Musk’s Next Brilliant Move
How Tesla Inc. Can Crawl Back to Prominence and Be Stronger Than Ever
Tesla needs to re-calibrate. Although they hold the automobile acceleration record, I believe they should hit the brakes and evaluate if they are racing towards the correct destination of “bringing mass market electric cars to market as soon as possible”.
The competition for Electric Vehicles (EV) has increased over the past 24 months as the awe of the Model S waned and automakers scrambled to dethrone the industry disrupter, Elon Musk.
Tesla has missed its production goals for the Model 3, which isn’t a surprise They have missed goals before, but they are losing cash at an increased rate, juggling their numerous projects.
I think Tesla’s onlookers are doubting its future because Tesla thinks they are in the car business.
They are not.
The Model S was the first successful concept of a mass marketed EV, and should have been kept the gold standard, instead of one surrounded by the Model X and Model 3.
Rather than competing with car manufacturers, Tesla should be serving them. The smartest entrepreneurs do not participate in a gold rush,they sell the ax picks and the shovels. EV is the transportation gold rush of the 21st Century and Tesla has the best shovels in the market in their batteries, and everyone knows it.
If Tesla can shift their focus from manufacturing cars, and prioritize providing top tier batteries to the industry looking for them, Elon Musk will solidify his name as one of the (if not the single) greatest mind of this century.
S.O.S. Recommendations:
- Sell the Model X and 3 to other manufacturers looking to get into the EV space and have the financial wherewithal to support them.
- Keep the Model S as the EV Gold standard and demonstrator of the Tesla battery capabilities.
- Continue to work on the Tesla Semi — A B2B product. The purchase orders of several dozen vehicles per customer will provide Tesla Shareholders and creditors the assurance of a positive ROI. which has purchase orders.
If you disagree, I would love to hear about it.
