Tesla's Not as Disruptive as You Might Think: Here's What Might Really Upend the Auto Industry

Tesla's Not as Disruptive as You Might Think: Here's What Might Really Upend the Auto Industry

Publisher: 
Harvard Business School Press
Date published: 
2015
Record type: 
Journal Title: 
Harvard Business Review
Source: 
Harvard Business Review, Vol. 93, No. 5, May 2015, pp. 22-24
Abstract: 

Five questions are used to determine disruptive technology. 1) Does it create a new market? 2) Does it promote asymmetric motivation, or aim for higher performance segments? 3) Can improvements be made without compromising a low-cost structure? 4) Are new value networks created? 5) Are all incumbents disrupted? Based on these, it is posited that the Tesla Motor Inc. goal of creating mass-market, affordable electric vehicles is not truly disruptive. Instead, the true disruption is the neighborhood electric vehicle (NEV), a small, low-speed vehicle that resembles a golf cart. NEVs are already being used in retirement communities, university campuses, and as delivery vehicles in cities. They are inexpensive to make and to operate, and are easy to park.

Language: 

CITATION: . Tesla's Not as Disruptive as You Might Think: Here's What Might Really Upend the Auto Industry . : Harvard Business School Press , 2015. Harvard Business Review, Vol. 93, No. 5, May 2015, pp. 22-24 - Available at: http://library.au.int/teslas-not-disruptive-you-might-think-heres-what-might-really-upend-auto-industry