Tesla’s Bold Move is Starting to Pay Off

Apparently Tesla’s recent risky  move is paying off.

CEO Elon Musk stated that the car company would not sue anyone who uses Tesla’s patented technology “in good faith,” in hopes of cultivating a bigger industry for rechargeable vehicles.

“If we clear a path to the creation of electric vehicles, but then lay intellectual property landmines behind us to inhibit others, we are acting in a manner contrary to that goal,” Musk wrote in a blog post. “Tesla will not initiate patent lawsuits against anyone who, in good faith, wants to use our technology.”

Four days after this announcement, Musk offered most of his company’s patents to rivals such as Nissan and BMW. It seems that Tesla is trying to make its superchargers become the industry standard. Tesla currently has 97 charging stations in the US, but with more companies using their technology, this can only grow.

Tesla charging stations in the U.S.

Tesla charging stations in the U.S.

 

“It makes natural sense,” Carter Driscoll, senior analyst of clean technology at MLV & Co., told The Huffington Post. “BMW and Nissan see that you have a company here that’s dedicated to electric vehicles.”

Most likely due to this announcement, Tesla’s stock price rallied to its highest point in months on Monday.

This is a bold move, especially since Tesla is located in the Silicon Valley. So many companies, especially in this area, profit by suing entrepreneurs who violate patents often registered to companies that don’t really do anything but have that patent. Intellectual property laws also fail to protect companies from international competitors.

What are your thoughts on this bold move? Do you think it will continue to pay off?

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About DevonJ140
I am currently an Accounting Director living in New York City. I love reading and learning more about business, finance, tech, and current events.

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