Tesla just reached the $100 billion valuation mark, making it the most valuable car manufacturer in the world (with Volkswagen coming in close second with a $99.4 billion valuation). This is incredible for two reasons:
- Not because the actual number (although, it is) but because the pioneers and former leaders in the industry (GM and Ford) are worth less than ½ of Tesla ($49.9 billion and $36.3 billion, respectively); and
- Because, if you really think about it, a Tesla car is nothing but a big computer running on an electric motor powered by a giant battery and incased in a box that looks like a car.
What that means is that when Tesla has a recall, they remotely update the software and the car doesn’t move until the updated is finished. For regular cars, a similar recall would include scheduling a trip to the dealer, huge inventory of the replacement parts, and huge costs of manual labor required to replace the defective part.
In 2015, GM’s worst year for recalls, the company spent over $4.1 billion , which include compensation and a $2.8 billion on actual replacement costs.
Who says that innovation and creativity, while building something to help the environment doesn’t pay off?
#tesla #GM #Ford #volkswagen #cleantransportation