2009-01-26

How the Automakers Can Save Themselves

Why doesn’t Tesla Motors license the technology it uses to produce the Roadster’s battery system to other car manufacturers so they can incorporate it into the production of some of their models?

It’s easy to see why the Tesla Roadster can become such a big player in America’s (and, possibly, the world’s) future auto market. Some of the Roadster’s specs are listed here:

  • 0-60 MPH in under 4 seconds, top speed 125 MPH
  • 220 miles between charges, complete charge takes about 3.5 hours.
  • Car burns no oil
  • Average electrical cost to charge battery is about 1 cent per mile.

I understand the possibility of Tesla wanting to monopolize the electric car revolution in the U.S., but offering this technology to other manufacturers would allow Tesla to sell far more products that it could sell on it’s own, expanding it’s brand and influence exponentially.

In addition to the increase in Tesla’s market share, this technology sharing would also provide the following benefits, just to name a few:

  • More new cars will be sold by all participating manufacturers, injecting more life into the auto industry than any bailout could.
  • New jobs will be created to build and support the necessary infrastructure to support the new cars.
  • America’s dependence on foreign and domestic oil will be severely reduced.

If this happens, will the automakers take the bailout money they receive to market the new electric cars or will they use it to give their executives lush bonuses for the excellent new business strategy they created?

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