Tesla made the shift from being a ‘Motor’ company to a ‘Technology’ company from the start
So, as a technology company doing business in Malaysia, Tesla is NOT like other car manufacturers who sell through franchised dealerships, have approved permit (AP) partners, provides dealer network with strong workshop (after sales) and even more interesting, Tesla sells directly to consumers (just like a smartphone brand).
It has created an international network of company-owned showrooms and galleries, mostly in urban centres like the showrooms in a high end shopping mall in Kuala Lumpur (like a smartphone brand).
Interestingly, by owning the sales channel, Tesla believes it can gain an advantage in the speed of its product development. More importantly, it creates a better customer buying experience. Unlike traditional car dealerships, Tesla showrooms have no potential conflicts of interest. Customers deal only with Tesla-employed sales and service staff.
So, there is no need for Malaysians to be all hot and bothered about the news that Tesla is walking away from setting up a factory in Thailand (and rumoured only Malaysian factory).
Please note that from January to July 2024, Tesla Malaysia only sold and delivered 3,399 electric mobility machines, in comparison, BYD delivered 5,070 electric cars (also known in some circles as mobility machines).
So, if Tesla sales in much lower than BYD, there is very little reason to have a factory putting together mobility machines here or in Thailand or even in Indonesia (where Tesla sales are slowing down).
This is why Tesla Omitted The Name MOTORS From Its Name!
BLOOMBERG recently shared news that carmakers themselves are stressing the importance of integrating software, as artificial intelligence is critical to self-driving cars, which themselves will allow drivers to enjoy improved in-vehicle entertainment. The business and manufacturing alliance between Sony and Honda symbolizes this trend.
“In terms of software, we will need to have a fresh way of thinking,” Yasuhide Mizuno, a Honda executive who is also chairman and CEO of the joint venture, said at a news conference. Indeed, it was Sony’s strength in software and content, such as music and video games, that prompted Honda to partner with the conglomerate.
Thus, the auto industry is expected to see an influx of new entrants in the coming years and decades.
“When including all these players, I think the auto industry will still be the pillar industry in Japan,” they added.
But the nature of that pillar will be very different, with the evolution of cars further blurring the boundary between the auto sector and other fields.
Companies such as Tesla were quick to get ahead of the game, adding that Tesla’s elimination of the word “Motors” from its company name in 2017 highlighted this trend.
It’s quite possible that people will no longer call it the auto industry in the coming decade and instead better known as a technology company.
This also signals the shift to more driverless vehicles which puts the importance of Ai technology in deciding the journey safety and even when the vehicle needs to book and visit a battery charging station.
Can the vehicle insurance companies accept this? If and when an accident happens, is the vehicle owner or the vehicle software provider, or even the telco provider that provides the communication channel be charged for an offence?
Its going to get very complicated as the rules of mobility get re-written around the world.
