Premium electric car maker Tesla Motors announced yesterday it will allow competitors to use its proprietary technology “in good faith” for free as an attempt to push electric car development.
Billionaire entrepreneur Elon Musk, Teslas Chief Executive Officer, took the unprecedented step yesterday of opening the car makers patent vault, hoping it would bring down industry costs, create new business opportunities and ultimately boost interest in electricity-powered vehicles. Mr. Musk has previously underscored his determination to popularize electric cars and that creating a larger market for these vehicles is more important to him than Teslas sole success.
Mr Musk said, cited by the Financial Times: “We believe that Tesla, other companies making electric cars, and the world would all benefit from a common, rapidly evolving technology platform. Tesla will not initiate patent lawsuits against anyone who, in good faith, wants to use our technology.”
While Musks step to spur faster development in the electric vehicle segment is not unique to the technology sector, it is a rare occurrence for the automotive industry. Tesla Motors holds more than 160 US issued patents, which are the foundation of the Model S success. The move shows Musks orientation toward a more open relationship with the global auto industry.
Mr. Musk said that Bayerische Motoren Werke AG has already shown interest in Teslas technology for rapidly recharging batteries which are part of the companys supercharger stations.
Kenn Sparks, a BMW spokesman, confirmed a meeting has been held and said, cited by the Wall Street Journal: “Both companies are strongly committed to the success of electro-mobility and discussed how to further strengthen the development of electro mobility on an international level.”
Mr. Musk also said that by making its secrets available to anyone would help Tesla achieve economies of scale and spread costs, for example for its supercharger stations. This would allow to quickly open more new stations.
Tesla, which sold 22 500 cars last year, saw its market value more than double over the last year to $25 billion but analysts reckon its long-term growth prospects depend on the companys ability to deliver a successful mass-market model. Elon Musk has vowed his company will unveil a low-priced electric vehicle with a price tag of around $35 000 within the next three years, something which will require a significant cut in battery costs. By opening up Teslas secrets, which will spur wider development and reduce operating costs for new companies coming into the electric car segment, Tesla hopes it will achieve faster combined innovation for the whole industry and make electricity-powered vehicles more affordable and popular.
Tesla Motors Inc fell by 0.46% to $203.52 per share on Thursday, marking a one-year change of +108.25%. The company is valued at $25.25 billion. The 14 analysts offering 12-month price forecasts for Tesla Motors Inc have a median target of $220.00, with a high estimate of $325.00 and a low estimate of $75.00. The median estimate represents a +8.10% increase from the last price of $203.52.
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