How General Motors Inadvertently Inspired The Creation Of Tesla …

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How General Motors Inadvertently The Creation Of Tesla Motors

How Motors Inadvertently Inspired The Of Tesla Motors


“He thinks could be a big disrupter if we’re not History is littered with big that ignored innovation was coming their way because you know where you could be

These are the words of Girsky. vice chairman of Motors (GM), speaking of CEO Dan s newest initiative—a task to study the business threat by Tesla Motors, the California-based startup that sells s only highway-capable all-electric

The remarks are ironic. From the of Elon Musk. the billionaire behind Tesla s popular cars, GM is right on the money. He has intention of making Tesla a and indeed considers Akerson s old firm the epitome of the big company ignored innovation that was their way.

On The Show with David 2009, Musk chided Motors for its decision a decade to kill the only viable car on the market—the EV1—just three after launch and amid a outcry. Musk said it s inspired him to build the world s profitable electric vehicles.

The Cannibalization Of The EV1

Launched in 1996, the s first attempt to put an all-electric into production—was the most plug-in yet seen. The EV1 was hailed as a yet its fate testifies to GM s true

The Detroit-based automaker pulled the on its own plug-in at the first sign of in 1999, demanding consumers their cars or face action. A month after purchased gas-guzzler brand they shut down lines for EV1s and laid off the building them.

Turning down million-dollar to preserve the last of the electrics, GM the confiscated cars to a remote and had them crushed. In the baffled backlash, images of the EV1s in the desert emerged to bear to the strange story of a major firm that cannibalized its own for fear of green innovation.

At time, GM dominated the EV space, due to its controlling interest in technologies NiMH batteries, which to make EVs more cost-effective to traditional polluter commuters. In the company s assets seem not at all to promote electric success, but to keep it in check.

GM s strategy of keeping its friends and its EV competitors even closer led to the crushing of the first modern of American EVs—to the dismay of of lessees already fiercely to the gasoline-free way of life.

Lessons

Observing the senseless downfall of the Elon Musk decided he take the barn door-sized GM missed to meet and nurture demand for electric powertrains.

the Tesla Roadster. and now the Model S the best-performing, or as Musk puts it, the real all-electric vehicles you can buy

The premium Model S electric gets the equivalent of 95 mpg zero emissions. clips to 60 mph in 4 seconds, and recently earned the of being the safest car ever by government regulators.

Speaking to Letterman, the Tesla CEO recounted how GM had credited his cars with the hybrid Volt—GM s first effort to make an energy-efficient And yet, it was GM s disinherited EV1 that inspired Tesla Motors.

Flash forward to 2013, and Musk and his upstart auto are working hard to raise the car from the dead. General it seems, is now prepared to take .

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