As a small company in one of the most capital-intensive industries in the world, investors naturally ask whether Tesla Motors (ERM: A1CX3T) in this extreme competition brings the necessary stamina. Tesla’s ambitions, all-electric cars to become the leader in could be the catalyst for long-term growth. But there is another, often overlooked unique feature: software. Tesla’s proprietary software could become the largest of its competitive advantages.
Model S 17-inch touchscreen.. Provided by:. Tesla Motors
A software company?
Tesla is just a software company as a carmaker. The unprecedented 17-inch touch screen dominates the infotainment experience in the industry. Behind the oversized display hides a self-developed computer and proprietary software, which the company compared to other car manufacturers has a lot more control over how the software interacts with the vehicle.
This close connection between software and hardware has already borne fruit: Tesla is its competitors in some areas already far ahead. These include wireless software updates, Fleet Learning and more autopilot functions.
Ashlee Vance, author of Elon Musk: Tesla, SpaceX, and the Quest for a Fantastic Future, tells in his book the story of TJ Giuli, the engineer who had set up for Ford’s work in Palo Alto. He was also involved in software concept from Ford. T. J. realized that the technology is becoming increasingly important within a vehicle and was therefore always envious, while he was still working on Tesla for Ford.
In any Ford dozens of computer systems of different companies that all work together and had to work as a system were. It was far too complex, but it had evolved over time like this. At this time a simplification was almost impossible, particularly for a company like Ford, which has hundreds of thousands of cars for sale each year, and it could not afford to stop the machine and set up everything. In contrast, Tesla had to start from zero and create its own software. Giuli would have wished such an opportunity. “Software is in many different ways the heart of the new experience in a car.” He said. “From the powertrain to the warning tones software is used to create an expressive and pleasant environment. The software integration of the Model S is really impressive. Tesla here is the measure of all things. “
At the end left Giuli Ford and now works for Skyport system, an information technology company in the field of cloud security.
Software is becoming increasingly important
Therefore, it is no surprise that several studies suggest that the client software is becoming increasingly important when buying a vehicle. Morgan Stanley predicted recently that the added value of software will go in a car in the next 10 years from 5% to about 60%. According to a study from BI Intelligence is the customers all over the world now, the technology is more important than the mileage.
A study by Accenture from the December 2013 found that 39% of 14,000 surveyed motorists than in the world’s biggest car markets Infotainment their most important consideration when choosing a new car called.
THE SOFTWARE AND HARDWARE INTEGRATION plays a key role at the leading AUTOPILOTTECHNIOLOGIE ON, as to the ability, this technology WIRELESS UPDATES to spread and improve it.
Of course, the importance of software of any carmaker is ignored. Therefore, the investors can bet that the financially strong competitors from Tesla to work flat out, to work in this field benefits.
Therefore the investments explode in car technology from Silicon Valley. Nevertheless, the integration of software and hardware could be more and more of a benefit to Tesla. Could the Nerdkultur the company become the most important unique selling point? Just like the seamless integration of software, hardware and services that Apple (WKN: 865 985) makes them so successful?
The investors should have an eye on the next steps in the software sector, while Tesla promotes its rapid expansion in vehicle production. If Tesla continues to work as innovative and can further increase their lead on the computer and software systems of competitors, the electric carmaker could also have long-term an important competitive advantage of it.
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Motley Fool owns shares of both companies and is recommended. Motley Fool recommends Ford.
This article was written by Daniel Sparks in English and was published on 08.12.2015 on Fool.com. He was translated, so that our German readers can participate in the discussion.
This article was originally published on fool.de.
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