In a recent interview with Dealbook’s Andrew Ross Sorkin, Tesla CEO Elon Musk shared some interesting insights about his company. Here are the key takeaways:
The Supercharging Network Is Big Business
According to Musk, if Tesla’s supercharging network was its own company, it would be a Fortune 500 company on its own. The Fortune 500 list ranks the largest 500 companies in the U.S. based on annual sales, with a minimum requirement of $7 billion. This suggests that the revenue generated by Tesla’s supercharging network is at least $7 billion.
Similar to a chain of gas stations, the supercharging network is where Tesla owners can “fill up” their vehicles with electricity. While specific financial details aren’t readily available, Musk’s comment implies that the network could contribute up to 10% of Tesla’s total sales.
Tesla plans to open up its network to non-Tesla electric vehicles in 2024, which is expected to boost sales growth further.
It is difficult to determine the exact value of an EV gas station business. Traditional gas station operators in the U.S. have a combined market capitalization in the hundreds of billions, despite stagnant sales. This is because approximately 98% of cars on the road still rely on gasoline. In comparison, the electric vehicle market presents a smaller but rapidly growing opportunity for Tesla.
Musk’s Stance on Unions
Musk expressed his disagreement with the idea of unions, but his reasoning may differ from what one might expect. He believes that unions naturally promote a negative environment within a company, leading to a hierarchical divide between management and workers.
Musk favors a situation where everyone is on an equal footing, where both workers and managers have an aligned perspective. In support of this approach, he mentioned that many line workers at Tesla receive stock-based compensation, and some have even become millionaires through their Tesla holdings.
In conclusion, Musk’s insights shed light on the significant business potential of Tesla’s supercharging network and his stance on unions within the company. As Tesla continues to innovate in the electric vehicle industry, it will be fascinating to witness the future growth and impact of both its network and its workforce.
Elon Musk, the visionary entrepreneur and CEO of Tesla, has long been a proponent of self-driving cars. According to Musk, implementing this technology could potentially lead to a significant reduction in road fatalities.
In the United States alone, an alarming 40,000 to 50,000 people lose their lives in car accidents every year. Musk believes that with autonomous vehicles, we could see a drastic reduction of deaths, bringing the numbers down to around 4,000 to 5,000.
While some may doubt the feasibility of this vision, Musk is confident that convincing regulators about the superiority of computer-driven cars will not be a challenging task. He believes that the evidence in favor of self-driving technology will be so overwhelming that it cannot be denied.
However, perfecting self-driving cars has proven to be a complex endeavor, and Musk’s previous predictions about their availability have often fallen short. Despite this, his optimistic outlook remains unshaken.
Addressing Concerns about EV Demand
Recent concerns have surfaced regarding the slowing demand for electric vehicles (EVs) in the United States. However, Musk adamantly disagrees with this notion.
To refute these claims, Musk confidently states that the Tesla Model Y will become the best-selling car globally this year, surpassing both gasoline and electric vehicles in popularity. This remarkable achievement serves as undeniable proof that EVs are gaining traction.
While EVs currently account for approximately 9% of all car sales in America, they enjoy a higher market share in Europe (15%) and China (25%). Musk believes that by creating compelling electric cars, automakers can drive further adoption and overcome any perceived hurdles.
Musk’s steadfast commitment to pushing the boundaries of innovation often attracts controversy. However, he remains unfazed by the opinions and criticisms directed towards him.
Addressing detractors, Musk confidently asserts that irrespective of personal opinions, what truly matters is the quality of Tesla vehicles. He poses a simple question: “Do you want the best car or not?”
Tesla’s stock continues to perform well, with a 0.7% increase in premarket trading. In comparison, the S&P 500 and Nasdaq Composite futures have experienced a smaller 0.2% increase.
The future of self-driving cars and EVs appears promising, and Elon Musk remains at the forefront of these transformative technologies.