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Aug 29 2008

Is Tesla the car industry’s Google?

Chas Hallett

Just a thought, but what if today’s leading car-makers won’t be the leading car-makers in 20 years time?

CH BLOG Maybe, just maybe, electric cars are the car industry’s internet. Google was founded almost exactly a decade ago, and who’d really heard of it seven years ago?

Small, boutique car companies are starting up all over the place: Tesla, Mindset and Gordon Murray’s project. What they all have in common is that they don’t make traditional cars and they don’t make them in traditional ways. They won’t all stay small and boutique for long. And my money is that Tesla, especially, is going to be huge.

A fledgling car business will never make it big as quickly as a web start-up. But with an industry in flux, and the very real possibility that oil prices will rise further in the next few years, you never know where this might end up.

Like I said, just a thought.

 

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About Chas Hallett

Makes all the big decisions at Autocar, including whether he’ll drive the Aston, or the Kia, home. Is currently preoccupied by small turbo petrol engines and whether the internal combustion engine is doomed.

Comments

theonlydt August 29, 2008 11:36 AM

Unless these companies have very dedicated owners/shareholders it is most likely that they will be bought by a mainstream manufacturer when the product/technology is in a viable position.

Part of the reason for this would be the EU setting maximum CO2 targets for a manufactorers range. Rather than "dilute" a brand some of the mainstream brands may buy the alternative fuel companies to reduce their average CO2.

So, Tesla the next google? Maybe. More likely is that market forces and the R&D budgets of major manufacturers will make the smaller companies who may lead the way now redundant, or consilidate into fewer, larger companies.

Remember, Toyota, GM, Honda, Ford etc already have dealer networks, importers, capital to invest, factories etc

coolGav August 29, 2008 12:51 PM

google started with a better search engine, and realised that to make any money, they needed to be in advertising. Now they are making much more than a search engine: applications, servers, buying unlit fibre, etc etc. Google is everywhere in internet technology.

For a new car manufacturer to emulate Google they will have to offer a service that is better than the rest, and meets peoples needs perfectly. Yet the transport infrastructure, peoples perceptions, and the manufacturing industry are not readily able to make such a sudden change! There wont be free transportation in exchange for targeted advertising!

However, there could be changes in fortunes for companies investing in these incremental steps forward.

W124 September 3, 2008 11:17 AM

It will be interesting to see if any if the supercar clubs get these in.  I reckon they will be booked solid well into the future.  Like a great big dodgem car - I love it.  Tesla will have to be careful they don't peak too soon.  I suppose the above comments are right and it'll be sold at to the big boys at huge profit when the time is right.  More like Myspace than Google- Can Autocar please get a Tesla in the next sideways challenge?

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