The next decade or so of automobile travel undoubtedly belongs to Tesla. 12 years after the firm started selling its first completely electric offering, the Tesla Roadster, Tesla has become the largest electric vehicle (“EV”) maker on the planet. In fact, Tesla’s capitalization had reached $107 billion by mid-January, exceeding that of Ford and GM combined to become the world’s second most valuable auto company behind Toyota. So how has Tesla Inc. (NASDAQ: TSLA) managed to disrupt a centuries-old industry in just less than two decades?
It deals in both hardware and software. Back in 2011, Marc Andreessen, co-founder and general partner of venture capital firm Andreessen Horowitz wrote that “software is eating the world,” and Tesla has shown just how disruptive software can be. By developing software on unique hardware, Tesla can send out updates, improving an EV’s software functionality every few weeks, just as one would experience…
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