Is Tesla Really a Disruptor?

It is amazing to see how technology disrupts so many aspects of our life. Moreover, while some disruptors are obvious, others sneak up on us. For example, the attached article titled “Is Tesla Really a Disruptor? (And Why the Answer Matters)” by Harvard Business Review presents the notion that Tesla is erroneously being regarded as a non-disruptive innovation. According to Downes and Nunes (2017), “after reporting earnings earlier this month, its stock jumped, rocketing the 14-year-old startup’s valuation to over $53 billion, ahead of every other U.S. car manufacturer and all but three worldwide” (Downes & Nunes, 2017).

Despite the fact that Tesla is near $10 billion in debt due to manufacturing hardships, the company continues its transition from small batch car making to mass production. Furthermore, both investors and lenders stipulate that the company has a solid, “long-term potential to dominate a future that may feature autonomous vehicles, sustainable energy consumption, and the ability to upgrade easily as both hardware and software evolve” (Downes & Nunes, 2017). Downes and Nunes (2017) note that Tesla does not “qualify” as a disruptive innovation under the traditional definition; however, they note that under “Big Bang Disruption” it does.

I encourage everyone to read this article, as it offers an interesting perspective on disruption, in which these technological advances do not merely lead to problems for innovators, but rather lead to eventual “industry collapse and reincarnation based on a new value proposition” (Downes & Nunes, 2017).

References
Downes, L., & Nunes, P. (2017, August 17). Is Tesla Really a Disruptor? (And Why the Answer Matters). Harvard Business Review. Retrieved October 5, 2017, from https://hbr.org/2017/08/is-tesla-really-a-disruptor-and-why-the-answer-matters