Lou Shipley: Why can’t anyone compete with Tesla? “It’s the software, stupid.”

There’s no disputing that Tesla’s first-to-market electric vehicles are revolutionizing high-end driving. As an entrepreneur and engineer, Elon Musk is disrupting the automotive industry in ways that would surely impress Henry Ford and Karl Benz.
Recently, though, there’s been speculation that Tesla will have its comeuppance as the established luxury automakers-including Audi, BMW and Volvo-begin shipping their own electric vehicles. Those car manufactures have a combined 300 years-plus of auto-making and brand-building experience. Not to mention legions of loyal customers.
But according to Lou Shipley, Lecturer at the MIT Sloan School of Management, 16-year-old Tesla needn’t be too concerned.
Read more: thehill.com/opinion/finance/447171-teslas-advantage-its-the-software-stupid
About Lou Shipley: mitsloan.mit.edu/faculty/directory/lou-shipley

Пікірлер: 37

  • @rahuliox
    @rahuliox5 жыл бұрын

    It's misleading to say they are "not profitable", when they had 2/3 profitable quarters recently and probably will be net profitable for the year.

  • @alexng4

    @alexng4

    5 жыл бұрын

    I"m a tesla fan, and own 100 tesla stocks. And you gotta be realistic, Tesla is aggressive spending tons of money on R&D and in infrastructure. And they only have one model (M3)thats selling to the mass consumer at the moment. Their concern is less about profit and more about building for the future. I expect sporadic profits for the next 1 -2 years.

  • @cmontes7961

    @cmontes7961

    3 жыл бұрын

    They sell every car at a loss and the only reason they are still in business is because of the tax credit they sell to the other car companies. It's impossible to make a profit on an electric car especially one designed for the masses.

  • @MarkSpohr
    @MarkSpohr5 жыл бұрын

    Some people keep saying that there will be a demand problem in the future. Hasn't happened yet but I guess it could happen once everyone on the planet has a Tesla.

  • @abyteuser6297

    @abyteuser6297

    4 жыл бұрын

    Everybody on planet Earth... and then there is Mars Tesla market

  • @codemonkey2k5
    @codemonkey2k55 жыл бұрын

    Almost a good article except for the last bit which was just a re-issuance of the same old FUD. 2 of the last 3 quarters Tesla has been profitable. And they will likely be profitable at the end of this quarter. Their year over year is better than any car manufacturer in operation. We need to stop it with the bullshit about Musk being this or that, he's a guy that believes in something, works tirelessly towards it and is extremely successful in obtaining his goals. Nothing else matters.

  • @hellcat1988
    @hellcat19884 жыл бұрын

    I wish more "automotive reviewers" would figure this out.

  • @bluezcluez315
    @bluezcluez3155 жыл бұрын

    I’ve seen some value the on-board data collection at about $5000/vehicle. Nobody in Detroit or Germany has that software infrastructure in place.

  • @hudsojt
    @hudsojt4 жыл бұрын

    I totally agree with Lou Shipley's assessment of Tesla's dominance. I would add that Tesla still needs to execute their business plan as they envision doing it with few if any missteps.

  • @rickkay9548
    @rickkay95484 жыл бұрын

    this dude is exactly right. Tesla is killing it for myriad reasons. Elon's tweets don't make the cars slower or less amazing and their happy customers dont care

  • @markplott4820
    @markplott48205 жыл бұрын

    MITsloan- are you Sure TESLA is not profitable ? FACT is Tesla had 2Q of Profitability and is Targeting profitably in Q2 of 2019 as well. There is no Demand problem, and TESLA is NOW making 1000 cars per week. And is Actively ramping up production to Beat previous Quarter DELIVERY numbers.

  • @MyName-mo7fw

    @MyName-mo7fw

    5 жыл бұрын

    I think you meant 1000 per day :)

  • @markplott4820

    @markplott4820

    5 жыл бұрын

    David mine - YES, you are correct Sir.

  • @irsalman

    @irsalman

    5 жыл бұрын

    @@MyName-mo7fw I think you mean 1000 Model 3s per day :))

  • @codemonkey2k5

    @codemonkey2k5

    5 жыл бұрын

    @@irsalman yes correct.

  • @MyName-mo7fw

    @MyName-mo7fw

    5 жыл бұрын

    @@irsalman yes

  • @johnwilson5743
    @johnwilson57435 жыл бұрын

    Note: I am a Tesla and Elon fan boy. BUT... Elon Musk was not a founder of Tesla. He "came on board" after the company had started, initially to help finance the early roadster and started getting involved. The rest is history.

  • @weaver03

    @weaver03

    5 жыл бұрын

    technicality. starting a company is easy. growing it and making the right decisions is hard.

  • @danielworrel

    @danielworrel

    5 жыл бұрын

    Tesla would have been history were it not for Elon Musk’s capital and leadership

  • @johnwilson5743

    @johnwilson5743

    5 жыл бұрын

    @@danielworrel Yes. I completely agree. But that wasn't the issue. Elon didn't actually start Tesla. That was the issue. Oh, and long may he reign too. Cheers.

  • @luciomasoero3263
    @luciomasoero32634 жыл бұрын

    Elon Musk really is a very intelligent person it's made believe many peoples that tesla cars can compete with brands like mercedes, audi, bmw, porsche, etc in terms of quality, design, craftmanship, and so on and so forth. He's a marketing genius! Porsche allready did a better electric sport car, hows that posible? It's because porsche it's been doing it for a long long time. Other car makers will catch up and then telsa will have to compete with better manufactured cars. It's what allways has happened

  • @aaronstone6183

    @aaronstone6183

    4 жыл бұрын

    tbh, I'd plant trees for my emission and save until i get an audi or merc.. not gonna buy a 100,000 dollar roadster, nah.

  • @MichaelBylehn
    @MichaelBylehn5 жыл бұрын

    I still don't get why knobs have been removed. Surely you can have both touch and physical control for the same functionality, like Volvo is doing.

  • @LAdweller

    @LAdweller

    5 жыл бұрын

    Adding knobs, buttons, levers and switches is going back to the past. These are mechanical functions with moving parts that are subject to physical wear and tear. Also by having most of the buttons displayed on the massive screen, the dashboard is essentially customizable and the features upgradable and with room for improvements, as opposed to being stuck with hard physical buttons.

  • @xXZ31t6esTXx
    @xXZ31t6esTXx5 жыл бұрын

    If buy a automovil, buying something else that is not a Tesla is a mistake

  • @bryanwelch6209
    @bryanwelch62094 жыл бұрын

    I can't remember the last time I have heard of Toyota or Honda building cars in FEMA tents in the parking lot of the manufacturing facility lol. If electric is the future Japan will crush Tesla. Mark my words.

  • @hyperdrivee7922

    @hyperdrivee7922

    4 жыл бұрын

    Bryan Welch this wouldn’t have been an ignorant comment 10 years ago. But in 2020 that opportunity has come and gone. Honda & Toyota are among the biggest failures, failing at every perfect opportunity they had. Today Honda has 1/3 the range of a similar priced Tesla & Toyota is just going backwards. Toyota and Honda have never had to build cars in a tent because They’ve never had a waiting list for any of them. They have never been sold out and trying to get to the next model.

  • @CulDudStudios

    @CulDudStudios

    3 жыл бұрын

    Hyperdrive E exactly right

  • @illuminati10yearsago80
    @illuminati10yearsago804 жыл бұрын

    It's not the damn software, tesla has better specs, and better aesthetics than competitors. And better software, but that's not as important imo. A car could do fine without any infotainment if it had the best specs and looked good.

  • @dimitardimitrov9482
    @dimitardimitrov94824 жыл бұрын

    Why everyone keep comparing apples to pears. There is nothing revolutional about tesla. They didn't invent the electric motor, nor the controller or the lithium battery. They use good quality components but not top of the crop. Elon Musk keep braging around how his cars are the most aerodynamic serial production cars which is simply not true. On top of this his cars are heavy. And I mean heavy as shit. 2200kg electric luxury sedan? Who came with this idea? 20kWh per 100km range... WTF!?! That's just sad. Cybertruck... OMFG!!! And then there are those "backwards thinking german engineers" who drove automotive inovation for decades with their stupid hyper efficient engines, drivetrains and superb aerodynamics. Make no mistake - VW, Mercedes and BMW can all make better electric cars than tesla. They just don't need to right now. The demand for ICE is still going strong so they don't have to switch to EV just yet. That's why they don't invest nearly enough in R&D for electric cars and hence the subpar models they are now releasing. Things are about to change... soon...

  • @dimitardimitrov9482

    @dimitardimitrov9482

    4 жыл бұрын

    @goran stojanovic Please explain? Don't see how pointing out that Tesla makes subpar cars makes me brain dead. What exactly in my comment is wrong? Or did I just hurt your fanboy feelings? Well, sorry about that...

  • @billcichoke2534
    @billcichoke25345 жыл бұрын

    No one competes with someone who doesn't matter. But I guess the faithful need their narrative...

  • @aaronstone6183

    @aaronstone6183

    4 жыл бұрын

    @Rick Lokers well that's true.. people come and go in tech world.. today its tesla.. yesterday it was toyota honda hyundai.. tomorrow who knows..so why bother and keep innovating , deliver what the people want and you'll become wanted.