Elon Musk On Tesla’s Approach To Innovation: Don’t Play With The Same Old Chess Pieces – Yahoo Finance


Tesla Inc (NASDAQ: TSLA) CEO Elon Musk made commentson social media late Wednesday that he perceives the electric vehicle makerto be acollection of a dozen startups," rather than a single company.

What Happened: The chief executive was replying to a 2019 tweet by Disruption Research, a platform that focuses on innovative companies.

Tesla is best understood as a collection of about a dozen startups, mostly in series, increasingly in parallel, Musk said.

Every product line [and] new production system was invented," the billionaire entrepreneur added,touching on the automakers research and development prowess. "Instead of playing chess with the same pieces as everyone else, create new pieces.

Why It Matters: David Chang, Disruptive Researchs co-founder,also started Nomad Capital Partners that has provided capital solutions to companies in special situations. The venture firm has invested in Musks SpaceX, according to Changs LinkedIn page.

Disruptive Research webpage says they are currently focussed on companies such as Tesla, SoftBank Group Corp (OTC: SFTBY), Slack Technologies Inc (NYSE: WORK), and Shopify Inc (NYSE: SHOP).

Benzingas Take: Musk's chess-piece analogy is better understood if we put his other comments in context. The serial entrepreneur has suggested on multiple occasions that Tesla sees the process of making auto parts as a goal in itself. According to Musk,a gigafactory, as Tesla refers to its manufacturing facilities, is a "machine that builds machines."

The Palo Alta-based company has also entered ventures, not typically taken by automakers, including its recent plan to manufacture vaccine printers in collaboration withCureVac BV(NASDAQ:CVAC), a move that could potentially prove game-changing in the efforts to make a COVID-19 vaccine widely available.

Price Action: Tesla shares closed nearly 10.9% higher at $366.28 on Wednesday and rose almost 2.4% to $374.98 in the after-hours session.

See more from Benzinga

2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Read the original post:

Elon Musk On Tesla's Approach To Innovation: Don't Play With The Same Old Chess Pieces - Yahoo Finance

Related Post

Leave a Reply

Your email address will not be published. Required fields are marked *