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Tesla Motors, Inc. Message Board

  • harry_reid_is_a_clown harry_reid_is_a_clown Mar 18, 2014 11:06 AM Flag

    History lesson per SA article - very insightful

    As an example, over 100 years ago communications were usually done via the telegraph. When telephones became widely available to consumers, the money and resources invested in telegraph technology became obsolete and were written down. That caused a lot of people to lose a lot of money.

    In the 1930s telex networks were developed, that to a great extent evolved from telegraph systems. Telex networks offered point-to-point teleprinting systems. However when the fax machine was introduced, all the technology and money invested in these networks became obsolete. Today with the evolution of the Internet, and with email widely available, rarely does anyone use a fax anymore.

    About 10 states so far have indicated that Tesla (TSLA) will not be allowed to sell cars directly to consumers as the company intends to do. Many commentators say this has a lot to do with the fact that automotive dealers have clout with local state legislators. Some say this is a battle for survival among the old automotive guard and the new wave (meaning electric cars) that is evolving.

    Local lobbying will not stop Tesla from going ahead with its plan to sell cars the way it intends. Tesla has many options to overcome these hurdles. In the long run, there will be creative destruction in the automotive dealership space. Just as people didn't stop the telegraph when the telephone was invented, and just as telephone operators were replaced by automatic PBX systems, in the same manner lobbying will not stop evolution.

    Obviously, if Tesla manages to become a household name, there are many companies and sectors that will lose out. Creative destruction will be of such magnitude, that very few of us can imagine what the repercussions will be, and local car dealers are the tip of the iceberg. Wealth destruction will appear in many forms and sizes, and in most cases, we cannot even begin to imagine what it will look like.

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    • yeah, what the SA article doesn't talk about is how big oil (companies, producers, wall street, etc.) has been driving up the price of gas in the last few years to line up billions of dollars into their pockets which is making life hard for the average person by spending more on gas. it also doesn't talk about the fact that oil is a finite resource. what happens when the world runs out of oil and every car is still a gasoline powered car. this innovation has to happen and everybody has to adapt to it. why were the manufacturing jobs not protected to stay in the US but shipped overseas. happening a lot now with the service sector jobs as well. why are the service jobs not protected. so many offshore companies are undercutting the salaries people make here by providing cheap labor. why is only tsla targeted which actually helps people spend less on gas, is environmentally friendly, creating so many jobs in the US when all the other big companies are sending everything overseas, etc. stifling free market economy by politicians, auto dealers, big oil, etc is not right. hopefully it will drive down the gas prices so much that big oil will have to realize how much they fleeced the average person.

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