Today during a call with investors and journalists, Tesla CEO Elon Musk was asked to expand a tweet from yesterday. In it, he stated: “Tesla should really be thought of as roughly a dozen technology startups, many of which have little to no correlation with traditional automotive companies.”
In short, he explained there are over a dozen startups in Tesla, and he views every line and plant as a startup. It’s a stimulating point of view from the highest of Tesla, a car manufacturing company that also builds batteries, home solar panels and, among other things, is looking to supply automobile insurance , too.
Outside of auto manufacturing, Musk points to insurance when asked about the expansion potential. He says the insurance business could grow into 30-40% of Tesla’s car business.
This strategy seemingly works well for Tesla, which constantly rolls out updates to existing products at an unusual pace. New features arrive without much warning, and it is sensible when Tesla is treating different vehicle component divisions as a set of companies rather than a set of divisions.
According to Musk, a number of the so-called startups include autonomy, chip design, vehicle service, sales, designing a drive unit, motors, supercharger network and, soon, insurance.
“The thing people don’t understand about Tesla is [the company] may be a whole chain of startups,” Musk said. “And then people say, ‘well, you didn’t do this before.’ Yeah, well, we’re doing it now. i feel we may are a touch slower than other startups, but I don’t think we’ve really had anything fail.”
He concluded there are not any plans to spin any business, noting there’s no got to add complexity.