Tesla (TSLA) has “moved away” from its competitors, says venture capitalist


According to Chamath Palihapitiya, Venture Capitalist, Tesla (NASDAQ: TSLA), competitors are not among the goals of the sustainable business. Palihapitiya says that the companies that compete with Tesla are not in Tesla’s line of sight, and that “they sort of evolved.”Competition with Tesla is a strange concept because no other auto company has succeeded in doing what it has. Not only has the automaker shifted its focus from internal combustion engines to battery-powered powertrains, it also has a whole industry of energy storage products.

The problem is that other automakers, which aim to compete with Tesla’s increasingly concentrated sales numbers, are not the company’s main competitor, as Tesla does not focus solely on automobiles.

“Tesla is no longer about the auto industry,” Palihapitiya said in an episode of CNBC Squawk Box Tuesday morning. “The value of this business lies in energy deregulation. It’s about batteries and battery storage, and it’s about disrupting utilities. ”

Because Tesla doesn’t just focus on automotive developments and the global vision for the world’s transition to sustainable energy, battery storage, solar power and other energy products are also important to the company. than building efficient cars.

However, Tesla’s competitors are suing a company that is not necessarily affected by the developments others are proposing. Tesla holds a dominant position in the electric vehicle industry in terms of EV technology, battery efficiency and automotive performance.

In addition, the company has also established itself as a major player in the US solar market, where its prices are a third of the national average.

“I think people who try to compete with [Tesla], are not the people with whom they are competing, ”added Palihapitiya. “They kind of evolved. ”

Tesla CEO Elon Musk has said in the past that the company’s goal is not to crush its competition. Instead, Tesla has offered to open up its licensing software and provide powertrains and batteries to other automakers who want to be sustainable. Ultimately, the goal is to eliminate gasoline and diesel engines in the automotive sector and to have more homes powered by the sun in the energy sector.

Tesla has never listed a primary competitor or named a company planning to build sustainable powertrains, as the big picture is to move other entities to developing the same products.

Tesla’s corporate mission has already helped disrupt the normal, day-to-day operation of other car makers that have been around for 100 years. As Tesla continues to build a growing customer base, other automakers recognize that times have changed. Gasoline cars are no longer the most viable or affordable option, and automakers are ready to start building sustainable electric powertrains.

Disclaimer: Joey Klender is a shareholder of TSLA.


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