A Harvard scholar has published an article about Tesla Motors Inc (NASDAQ:TSLA) touching on the subject of disruption.
The scholar argued that the electric vehicle company is not disruptive. Therefore, they will not make significant changes in the industry. The scholar goes ahead to further state that the electric cars that will make a significant impact are those characterized by small size and low speeds. In short, they are vehicles that will mostly be suitable for urban situations and major towns which are usually heavily congested.
Such cars will have more significant influence because they can maneuver easier. Their small size and weight are significant to their success. Additionally emission regulations will fuel the shift towards small electric vehicles. Thomas Bartmanclaims that vehicles such as the Model S are just an added upgrade on the technology that is already in existence.
Bartman claims that the company is not disrupting the technology but is rather acting as a facilitating agent. He also described the situation as that where the company provides the same technology at in a more refined manner including enhanced performance and at more inflated prices.
According to Bartman, any disruptive innovation that will influence the automotive industry will include utility automobiles and low-speed electric cars. Such cars are currently sold but by firms such as GEM. They are in most cases not used public roads but rather carry out specific tasks.
Bartman’s inferences are based on studies focused on the direction that the motor industry technology is taking. Electric technology has not advanced to the levels where it has fully been accepted as a replacement for internal combustion. The groundwork to support such projects is scarce and expensive to put up.
Nonetheless, Tesla Motors Inc (NASDAQ:TSLA) has been hard at work trying to bring the technology up to speed and more acceptable. Currently, Automotive companies are trying to work on batteries that will have improved range. They are also hard at work trying to improve the infrastructure including the charging systems.
