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Unlike classic disruptive innovations such as steel mini-mills, personal computers and, in the car business, cheap Japanese imports, Tesla never pursued the classic route of going after low-end, price-sensitive customers first with cheaper, inferior technology. It doesn't pursue nonconsumption, or customers who don't currently drive cars. Tesla automobiles look and drive much like other cars, use established infrastructure like roads and confine much of their product innovation to only one aspect: the power system.

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The Disruptive Innovation Model at Tesla Motors

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The Disruptive Innovation Model at Tesla Motors

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Tesla's Battery Electric Vehicles (BEV) are:
- Innovative
- Zero emission
- fully/partly reliant upon the development of infrastructure
- exceed the cost of incumbent Internal Combustion Engine Vehicles (ICEV)

To achieve this, the company has invested a lot in research and development and has secured 117 patents with 258 patents pending. Its Model S BEV is a range leader at 265-314 miles, a Pack Cost leader by using already mass produced cells from Panasonic, and a Charge Rate leader achieving 50% charge in 30 min.

Tesla's goal is to eventually release a mass market BEV, but they are rolling this out over an extended period of time. According to CEO Elon Musk the company is pursuing a three-stage market entry strategy. Musk said in the 2013 shareholder meeting that it was always his intention to produce a mass market BEV, he reiterates this in the 2014 shareholder meeting. In order to reach mass-market entry the three-stage market entry process is:
1. Develop a high price low volume vehicle: The Roadster
2. Develop a mid price, mid volume vehicle: The Model S and Model X
3.Develop a low price, high volume vehicle: Due in 2016–2017 (Called the Model 3 or III).

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A disruptive innovation is an innovation that creates a new market and value network and eventually disrupts an existing market and value network, displacing established market leading firms, products and alliances. The term was defined and phenomenon analyzed by Clayton M. Christensen beginning in 1995. Disruptive innovation theory suggests that for a new invention to be disruptive it must strip out features, focus on doing one thing well and start at the bottom of a market and move upwards. In addition to starting at the low end, disruptive innovations often are enabled by new technologies or new business models. These new technologies or business models are what give disruptive ideas a runway to move up market and take share.

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Superchargers - The World's Fastest Charging Station

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Superchargers - The World's Fastest Charging Station

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Superchargers are connectors that charge your Tesla vehicle in minutes instead of hours. Stations are strategically placed to minimize stops during long distance travel and are conveniently located near restaurants, shopping centers, and WiFi hot spots. Each station contains multiple Superchargers to help you get back on the road quickly.

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Innovation innovating within Tesla Motors

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Innovation innovating within Tesla Motors

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Tesla Motors was recently named to the top of The World's Most Innovative Companies list, produced by Forbesmagazine. This is despite the fact that the company will not be turning a profit this year. Of course, there is a strong expectation that the company will become profitable. But in the meantime, its approach to innovation is, in itself, innovative and somewhat counter to the standard operating procedures used by many so-called innovative companies.
Tesla has built its entire company around this idea. The Model S and X will be followed in 2017 by a cheaper Model 3, a $35,000 Tesla for the masses, if all goes according to plan.

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Software update 8.0 is the most significant over-the-air redesign of the Tesla touchscreen since the launch of Model S in 2012. Join four customers as they share their favorite features and reflect on the changes their cars have seen through years of over-the-air updates.

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Market data of Tesla Motors as at 14th March 2017

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Market data of Tesla Motors as at 14th March 2017

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Tesla Motors CEO, Elon Musk spoke with the premier of South Australia on Saturday 11th March 2017 after the tech entrepreneur offered to install $25 million of battery storage within 100 days to prevent recurring blackouts that have disrupted the state. Musk made the offer on Twitter on Friday, saying if the work was not completed in 100 days it would be free. His proposal made headlines in Australia, which is in the midst of a heated debate about the national electricity market and energy security.

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Tesla, Inc., formerly Tesla Motors, incorporated on July 1, 2003, designs, develops, manufactures and sells fully electric vehicles, and energy storage systems, as well as installs, operates and maintains solar and energy storage products. The Company operates through two segments: automotive, and energy generation and storage. The automotive segment includes the design, development, manufacturing, and sales of electric vehicles. The energy generation and storage segment includes the design, manufacture, installation, and sale or lease of stationary energy storage products and solar energy systems to residential and commercial customers, or sale of electricity generated by its solar energy systems to customers.