Thursday, April 26, 2007

Tesla Motors Top Down


If you haven't heard of Tesla Motors, they are the company that is trying to re-legitimize the electric car. After all major auto manufactures have given up on the concept this new company is going about the electric car in a different way. Instead of trying to design and build an electric car that is cheap and needs to be sold by the tens to hundreds of thousands, Tesla is building a $100k sports car that needs to sell about 1000 a year to be profitable. When you think about it, this makes a lot of sense and is normally how new technologies are introduced, from the top down. In this interview, Martin Eberhard makes this point by giving examples of flat panel TVs, cell phones and refrigerators, all were very expensive in the beginning and sold in small quantities to those who could afford it, but eventually came down in price and were then priced for the general public.

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