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The Rise of Tesla Motors

Sep 24, 2014

Something very interesting is happening in the auto manufacturing landscape. The juggernauts of auto manufacturing are rapidly losing ground to the faster, smaller and more innovative companies such as Tesla Motors.

Tesla Motors is a Palo Alto, California car company that bypasses the traditional dealership model. The company designs, manufactures and designs electric cars that it sells directly to consumers. Tesla eliminates the middle man, and its unique high-end cars and business model have caused its share price to skyrocket.

The company is facing challenges in some states because its unique dealership model may violate some state laws. However, the company is confident that it will successfully repel all of the challenges to its independent dealerships.

Not only does the company sell cars, it also sells the lithium-ion battery packs to traditional automakers such as Toyota and Daimler AG. By also supplying traditional manufacturers through licensing agreements, the company can ensure additional streams of revenue.

The fairly new auto company is teaming up with Mobileye NV, a software company that produces driver assistance features in cars. The features allow drivers of new Tesla vehicles to access lane departure assistance, speed assistance features and parking sensors.

Tesla Motors vehicles are software driven in the sense that the company can upload various safety improvements and new driving features into Tesla cars without requiring physical hardware updates.

Existing Model S Tesla cars already have internet access and large touchscreen displays, recently, Tesla Motors’ charismatic CEO, Elon Musk, announced that self-driving capabilities would be available in Tesla cars within the next three years.

There is a market for high-end, safety feature laden and tech savvy vehicles; Tesla Motors is cornering that market.

Peterson & Associates, P.C. is a cutting edge law firm that understands how emerging technologies can change the liability issues associated with car accidents.

Categories: Auto Accidents

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