Been thinking about market share vs how Tesla uses selection. As in a bike race. At the end of the field sprint, where you ride into a narrow opening into the woods, a selection happens. If you are in the top 10, or get the hole shot, you will probably finish OK, if you make all the other gates (selections) that are used to determine the winner. As a competitor you can sometimes decide to grind as a selection or sprint as a selection.
All statistics are flawed. Tesla uses
selection to make sure they are flawed in their favor. For example:
The people putting FSD miles on are going to be selected based on large cushion size maintained while driving. The accident stats will reflect that large cushion size as fewer accidents and there will be no direct comparison. This is consistent with mission of accelerating the transition to sustainable energy.
For me, finding the right button to push to obtain FSD beta may be a struggle. That is another selection process. Here is how education is reflected in vehicle mile data.
As far as income goes, here is some all cause survival rates:
Someone told me that acting poor by driving an old car could have the same effect as actually being poor.
This started as a discussion of market share vs selection. Tesla uses selection. And would prefer that high maintenance customers inflict their maintenance costs on other companies. This is consistent with the mission, as other car companies are not on the mission, so wasting their time is probably a good idea.
When you build a mountain bike trail you put a qualifier at the entrance to each loop. If a rider cannot clear the qualifier they should go some other way. Customer selection is similar and is pretty standard stuff for many successful businesses.
I once worked for a company where the CEO had seen gifted people throw their lives away trying to sell into Japan in a previous job. When he came onboard, He said, "We are not going to do that."
So, point being that market share is not really granular enough without a maintenance and growth factor on the customers. How are they selected?
This February 2020 article says SpaceX had raised $3 Billion to date. And the contract to develop the crew capsule was about $3 Billion.
So if you think about selection, and how much 1 year of GM ad budget money did when applied as VC money to get SpaceX to where they are now, it is clear that Tesla is selecting the right customers with SpaceX, more efficiently than GM is with advertising.
This falls into the category of, "What they don't teach you at Harvard Business School," and is very consistent with the book of that title.
Amazon.com: What They Don't Teach You at Harvard Business School: Notes from a Street-smart Executive eBook : McCormack, Mark H.: Kindle Store
Tesla is expert at selection and selection is helpful for the mission.
