If there is one business entrepreneur in the world who speaks his mind and does his own thing, it has to be Tesla's founder, Elon Musk. When the company was originally created he had a vision of Tesla leading car giants down the electronic vehicle production line, allowing the industry to take over and dominate its gasoline/petrol counterpart. Growth in the electric vehicle market has been slower than many had hoped, and indeed many had expected, so what has the billionaire founder of Tesla decided? The company has announced that all electronic vehicle patents will be made public and anyone seen using them in good faith will not be in receipt of patent lawsuits. This is a major move by a major player in the industry and it could have serious repercussions for the gasoline/petrol market which is already under attack.
Why has Tesla taken this decision?
Tesla has basically decided that in order to speed up the development of the worldwide electronic vehicle market there is a need to open up its patents to competing companies. This may well be a very smart move by the company in the longer term because it will always be recognised with these patents and new technologies and indeed could decide to reintroduce patent suits in the event of future infringements.
If there is one thing this move has also done it is but the company's name in the headlines again, ensure that the electric vehicle market is a hot topic and also likely catch the eye of the sophisticated technology companies. It is perhaps not common knowledge but Tesla already acts as a partner for an array of other well-known car manufacturers looking to break into the electric vehicle market. How this patent decision will change the future relationship between Tesla and the rest of the electric vehicle market remains to be seen, but it must be positive in the long run.
Are competitors falling behind?
Tesla has been very critical of an array of competitors who seem to talk the talk but not walk the walk with regards to electric vehicle technology. There are many well-known companies that will come under this particular umbrella and by officially announcing a suspension of any patent infringement lawsuits this will place extreme pressure on competing companies. If they are serious about the electric vehicle market then many of them will be expected to jump at the chance to use Tesla's groundbreaking technology?
At the same time Tesla is poised to create what is known as a "battery gigafactory" which will see the company create electric vehicle batteries for the future. This is a major part of electric vehicle market which seems to have stalled, was initially starved of funding, and is still very much in a catch-up period. The introduction of Tesla into the equation will not only improve the profile of the battery technology industry but it will also ensure that competitors step up their game to compete with the "new kid on the block".