a16z Podcast

Tesla and the Nature of Disruption

Apr 21, 2022

Dive into the world of Tesla and explore the true nature of disruption in the automotive industry. Discover how Tesla's innovations are reshaping everything from car manufacturing to energy sources. The conversation draws parallels with past tech giants like Microsoft and GM's Saturn, revealing the complex dynamics of market dominance. Learn why traditional manufacturers struggle to adapt and how Tesla's software-driven approach sets it apart. Plus, gain insights into the challenges that come with integrating new technologies on the road to vehicle autonomy.

45:01

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Highlights

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Episode notes

Is it Disruption? What makes up disruption?

01:33

Modern management came from GM

01:21

Intro

2min

Disruption Dynamics: Tesla and the Auto Industry

14min

Navigating the Electric Vehicle Revolution

5min

Challenges and Innovations in Electric Vehicles

7min

Micro-Level Disruption in Tech and Automotive Industries

3min

Disruption and Autonomy in Automotive Innovation

11min

Lessons from the Saturn Experiment: Analyzing Innovation and Failure

2min

Navigating the Complexities of Product Success

2min

In this re-run from September 2018, Benedict Evans and Steven Sinofsky talk all about Tesla — and more broadly, the nature of disruption overall. How disruptive is Tesla really, and what exactly are they disrupting — from the dashboard to car makers to vendors to energy source to autonomy overall?

The tech industry is littered with leading innovators... who nonetheless failed to be the dominant leader in the end. So the question should be, is this new thing fundamentally difficult for the incumbent to do, and how does it relate to market dominance? Which of these things are important in order for Tesla to be the new BMW or the new GM? Looking back at other examples historically (Microsoft, GM's Saturn Brand, and of course the iPhone), what kind of disruption matters most for market dominance? And what is the long view of how software is eating transportation?