People are Ignoring Tesla’s Software Advantage

Tesla take-private deal

Tesla cars have long been called as iPhone on the Wheels.

“Think about Tesla. Tesla is producing cars. And Toyota is producing cars. But what Tesla is producing is something close to an iPhone,” said Akio Toyoda, President, Toyota Motor Corporation.

The iPhone comparisons are indeed a bit inevitable for Tesla. For example, a Tesla Model S that is connected to the internet will not be the same as another Tesla Model S that never gets connected to the internet. There are millions and millions of cars that will never hook up with the internet in their lifetime.

“Even if you’re not interested in owning a Model 3, don’t believe in electric cars, don’t like CEO Elon Musk, or don’t believe Tesla will survive to produce them for $35,000, Tesla is setting the agenda for the auto industry. The Model 3, through cellular, WiFi and Bluetooth connections, is constantly online in ways mass vehicles haven’t been before. Its computer, dashboard, key, motor, brakes, battery, power plug, and cameras (I could go on) are all sending and receiving data. Tesla is turning the car into the largest connected device you’ll own,” says Geoffrey A. Fowler of Washington Post

There is a overload of Technology, if you are looking at it from a traditional automaker point of view. But that’s how Tesla’s design philosophy has evolved over the years, blurring the difference between software and hardware to enrich user experience. Words that you often hear when you are talking about smartphones.

Tesla famously improved Model 3’s braking distance by almost 20 feet through an over-the-air update. A never seen before or heard before story in the world of autos.

Until now, that type of remote improvement to a car’s basic functionality had been unheard of. “I’ve been at CR for 19 years and tested more than 1,000 cars,” says Jake Fisher, director of auto testing at Consumer Reports, “and I’ve never seen a car that could improve its track performance with an over-the-air update.”

Ark Invest analyst Tasha Keeney told CNBC, ” I think a lot of people are really ignoring Tesla’s software advantage. Tesla is the only automaker that is able to collect data off of customers cars in the road.”

She added, ” When you buy a Tesla it’s not the same car that left the lot. It improves over time. You get over-the-air updates to your car overnight. These are just amazing products that are convenient to the consumer and the software advantage is really unrivaled. And so far, the traditional automakers haven’t been able to replicate.”