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Elon's Multi-Business Strategy

Discussion in 'Off Topic' started by jeff_adams, Jun 3, 2013.

  1. jeff_adams

    jeff_adams Member

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    Elon is highly involved in SpaceX, Tesla and Solar City. I would like discussion on other companies he might form and how he should structure them and his role.

    We know there will be news on his Hyper Loop proposal. Question is, should he look to build it privately or function more as a contractor for government agencies.

    Built by SpaceX, batteries by Tesla and powered by Solar City? Or should he form a 4th company? Stark Enterprises? :grin:

    Interesting discussions on possible Supercharger partnerships with other auto companies and perhaps grid storage with Tesla batteries. Does he spin off a seperate company for that business or handle it under the Tesla umbrella?

    Also, I've read stories about suppliers that tried to jack Elon around and Elon's response "we'll build it ourselves". They are doing that with SpaceX and Tesla parts. Should he expand those into businesses that stand alone and sell to others in competition? Say sell rockets to Branson, ect?
     
  2. DaveT

    DaveT Searcher of green pastures

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    I think a holding company that includes SpaceX and Tesla sounds like an interesting approach (not sure about SolarCity). He's mentioned a holding company as a possibility in an interview.

    The holding company (SpaceX, Tesla, etc) then could pursue Hyperloop and electric planes in the future. And become the first trillion dollar company. :)
     
  3. CapitalistOppressor

    CapitalistOppressor Active Member

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    I get a strong sense that Elon doesn't intend to ever work on a Hyperloop. In contrast, I think he badly wants to do an Electric plane, but unlike cars it requires a major improvement in batteries (Elon is confident that current Li-Ion chemistry is "good enough" to allow for mass market EV's, because there is still room for the price to drop with manufacturing efficiencies).

    A collaboration between SpaceX and Tesla on an electric plane makes a lot of sense.
     
  4. jeff_adams

    jeff_adams Member

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    It may be hard for Elon to resist Hyperloop. The story I heard was he never intended to run Tesla. He just planned to be an investor.

    If he gives Hyperloop to someone else and it doesn't seem to be going anywhere, I can picture him getting frustrated and taking over.
     
  5. Johan

    Johan Took a TSLA bear test. Came back negative.

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    Jeff and CO, I as well am very intrigued to see this picture forming of a multi-enteprise taking a swing at really major traditional businesses with potentially enormous markets, and the way these seemingly different ventures will intertwine and collaborate: EV's - Solar - Grid storage/CES is just genious. It's not just about battery tech and development, but I think we may also right now be witnesses to how the Nummi plant will not only be a plant for production of cars but perhaps in a few years Tesla will be the market leader when it comes to energy storage solutions (batteries - Li-ion, Metal-air? Al-Air? and who knows what is going on with capacitors???) and perhaps they are laying the framework for hughe production volumes when it comes to energy storage? With greater volumes comes economics of scale, which could solidify their position as market leader. If the treshhold is breached so to speak when it comes to the economics of energy storage v.s. arbitrage in grid storage for example, the potential market and revenue is gigantic.

    I too have listened to and read most of Elon's interviews in the past. I think that the hyperloop is cool and something he will pursue, however we've heard him say that he had plans to release his thoughts and designs on this as non-patented open source ideas. That's not to say that for example Tesla would provide energy storage and other tech while SolarCiity would be well positioned to supply energy generation for the Hyperloop. The electric planes on the other hand I think is something he believes he could develop in-house and go to market with. Would this be a spin-off of SpaceX or from Tesla? Both scenarios are possible I guess. A space craft manufacturer making airplanes - why not? A car manufacturer making air planes - already happened (SAAB, Rolls-royce making plane engines etc.).

    I'm getting more and more impressed with Elon Musk every day that goes by.
     
  6. SwedishAdvocate

    SwedishAdvocate Active Member

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    Nitpick: Wasn’t it the other way around? An aircraft manufacturer who began making cars…
     
  7. Johan

    Johan Took a TSLA bear test. Came back negative.

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    Yes that is true.
     
  8. jeff_adams

    jeff_adams Member

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    In an article I read, Elon was ticked off at Alcoa for jacking up his cost on aluminum. He almost sounded like he wanted to check out manufacturing his own aluminum for Tesla and SpaceX.

    Did he ever pursue that? His comment was "not much competition for Alcoa" in aluminum.
     

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