Entrepreneurship And Innovation: Lessons Learned From Tesla Company
Innovation is one of the major components for the success of a startup. Innovation is what drives humanity towards a greater, more stable future. One such company is Tesla, an electronic card company, founded by the tech-giant entrepreneur Elon Musk. Tesla is the first successful car startup company after FORD.
How is the word innovation to be understood broadly?
The trend of electric cars is not new, they have been here for more over a century, as they were first introduced in 1890s, and were widely used. But they were good only for small distances (5-6km). As the infrastructure of countries got better, roads were built, humans tend to drive greater distances and electric cars were just not for it and therefore the focus went towards normal cars. Many other major companies like Honda tried to develop electric cars in near 2000s but were not successful because of less distance covered, price and utility.
Tesla, formed in 2003 was the first company to develop high-way cars with an average distance coverage of 330km. defeating every other company in the field by developing the first, one-of-its kind Tesla roadster. Developing cars from scratch, an electric car, tesla was able achieve with its new out of the box design which enabled them to build electric cars which could compete with fossil-fuel cars. Instead of developing a mass producible car, tesla went with a totally different approach, building an electric-luxury-expensive car to compete with their gasoline counter parts. They only did not produce the cars, but set up a nationwide car-charging stations which can charge up your car in 30 minutes for free. They use an in-house developed Li-ion batteries that are 50% more efficient than their counter parts thus giving tesla the technology to produce such cars. Tesla has changed the car-market as we know it by introducing the world’s quickest car which entirely runs on battery. Innovation like this, paves a way for a greater, pollution free future and thus is the key of Tesla’s success.
The context in which the innovation happens is also equally important? A startup can only be successful if there is a target audience for it, if there is not there is not point is developing such product that no one’s wants to consume. It is estimated that in 2040, nearly 52% of the cars will be electrical, and in such a high demand market, developing such product which goes hand in hand with the future-demand-environment enables it to reach greater heights. Thus the context in which the innovations happens, is equally important for the startup to grow.