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Tesla Motors

BigTom

Well-Known Member
Now they've given away all their patents.

http://www.teslamotors.com/blog/all-our-patent-are-belong-you

$25bn market cap, making hardly any cars, and now effectively no IPR. Explain that to me without using the word 'bubble'.

Reading their blog it sounds to me like they feel they need to create more of a market for electric cars (and the infrastructure required to support them I would guess too). Holding patents makes electric cars less attractive for others to produce, give the tech away and other manufacturers may come into the market or expand their current offering.
I have zero idea how you value companies but giving away their IPR is not necessarily a bad move in business terms.
 

mauvais

change has become unavoidable
Oh no doubt, it's good for society, good for technology, good for consumers. I just can't see how it's good for shareholders whose interests are confined to the profits made by that one company. Who knows, maybe Musk doesn't care.
 

Bob_the_lost

Elsewhere
It's a PR move and possibly a deliberate attempt to avoid having to keep a large pack of lawyers on retainer. The constant patent wars have done the premium electronics brands no favours and the Tesla brand is more akin to Apple than it is to Toyota.
 

DownwardDog

Riding a Brompton with a power meter.
Oh no doubt, it's good for society, good for technology, good for consumers. I just can't see how it's good for shareholders whose interests are confined to the profits made by that one company. Who knows, maybe Musk doesn't care.
The market for EVs is currently constrained by the charging infrastructures. EM's view is that he gets more value from expanding the EV market by more entrants creating infrastructure demand than he does by keeping the IP. He's right more often than he's wrong.

The stock price will go to $400+ when the Model X launches.
 

mauvais

change has become unavoidable
I don't really doubt that it will any more, but it's still ridiculous. That'll be at least $50bn, on a par with BMW, for a company that has the output of Maserati.
 

coley

Well-Known Member
Well, buy in and report back in ten years, then we'll see what's happened to your money.

I have no doubt it's overvalued in a dotcom boom fashion. The only questions I have are is it possible to make money off it before it bursts, or before they're bought by a traditional manufacturer? The whole proposition is prime for the latter.
:D
 

mauvais

change has become unavoidable
It's still stupid, just a persistent stupid. FWIW I tripled my money on Fiat, exchange rate not withstanding, so I'm not fussed. I still say report back in ten, or eight or whatever it is now, and we'll see who's where.
 
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