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Jason Clement

Tesla Removes All Of Their Patents For Sake of Advancing Electric Vehicle Technology

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Wow, I did not see this coming at all.
 
When you think about it, though, what they're doing makes a lot of sense if they want electric cars to really advance in the next few years or so. Props to Elon Musk for doing this.
 
Here's the whole post from Tesla's site:
 

"Yesterday, there was a wall of Tesla patents in the lobby of our Palo Alto headquarters. That is no longer the case. They have been removed, in the spirit of the open source movement, for the advancement of electric vehicle technology.
 
Tesla Motors was created to accelerate the advent of sustainable transport. If we clear a path to the creation of compelling electric vehicles, but then lay intellectual property landmines behind us to inhibit others, we are acting in a manner contrary to that goal. Tesla will not initiate patent lawsuits against anyone who, in good faith, wants to use our technology.
 
When I started out with my first company, Zip2, I thought patents were a good thing and worked hard to obtain them. And maybe they were good long ago, but too often these days they serve merely to stifle progress, entrench the positions of giant corporations and enrich those in the legal profession, rather than the actual inventors. After Zip2, when I realized that receiving a patent really just meant that you bought a lottery ticket to a lawsuit, I avoided them whenever possible.
 
At Tesla, however, we felt compelled to create patents out of concern that the big car companies would copy our technology and then use their massive manufacturing, sales and marketing power to overwhelm Tesla. We couldn“t have been more wrong. The unfortunate reality is the opposite: electric car programs (or programs for any vehicle that doesn“t burn hydrocarbons) at the major manufacturers are small to non-existent, constituting an average of far less than 1% of their total vehicle sales.
At best, the large automakers are producing electric cars with limited range in limited volume. Some produce no zero emission cars at all.
 
Given that annual new vehicle production is approaching 100 million per year and the global fleet is approximately 2 billion cars, it is impossible for Tesla to build electric cars fast enough to address the carbon crisis. By the same token, it means the market is enormous. Our true competition is not the small trickle of non-Tesla electric cars being produced, but rather the enormous flood of gasoline cars pouring out of the world“s factories every day.
We believe that Tesla, other companies making electric cars, and the world would all benefit from a common, rapidly-evolving technology platform. 
 
Technology leadership is not defined by patents, which history has repeatedly shown to be small protection indeed against a determined competitor, but rather by the ability of a company to attract and motivate the world“s most talented engineers. We believe that applying the open source philosophy to our patents will strengthen rather than diminish Tesla“s position in this regard."


What do you guys think of this? Good move by them or bad move?

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Good move for innovation but bad move if someone hits it big and try to buy them out or make them become obsolete. I been debating if I should get a Telsa though. I want a new car and apparently the Telsa is a pretty beastly car.

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I do not see this as Tesla having an altruistic motive.  Tesla, as a company, hit its maximum profit potential in the current system.  They are, without a doubt, solidified as the top tier in a niche market.  Unfortunately, the next step for them requires everybody else to get on board with electric cars in a big way.  The patents may be released, but the tweaks and tech they are sitting on will keep them ahead of the game.  

 

The auto industry is a dinosaur that is clinging to a business model bad for the future, but currently a necessary evil.  Tesla released a more price-friendly car and .  If the larger companies dive into the electric car business, they are slitting their own throats unless they intend on recreating their entire business model.  Tesla will be able to create electric cheaper because they utilize direct ordering from the manufacturer, effectively cutting out the dealership's role in purchasing cars.  This is not an inherently negative change, but it can cause an avalanche of job loss.  Dealerships have already began suing Tesla (US is litigation-happy, I know) for this very reason.  Imagine if they were mainstream.

 

I don't doubt that Tesla has a plan in place to demolish their prices on their lower-end cars once electric cars reach significant market penetration, even if it takes a decade to come to fruition.   I also dont see them expanding to the EU with that business model because EU competition laws would simply not permit it without penalties (some of our biggest electronics companies can attest to that).

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John said everything i was gonna say which is a good thing because i have 1 more minute till my first work break is over lol.

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