In 2014, Elon Musk shocked everyone.
He gave away Teslas EV patents for free.
Wouldnt that help Teslas competitors?
But Musk didnt see it that way.
At the time, EVs made up less than 1% of global car sales.
Musk knew Tesla couldnt win this fight alone.
If we clear a path to create compelling electric vehicles but then lay intellectual property landmines behind us to inhibit others, we are acting in a manner contrary to that goal, he said.
By sharing Teslas patents, Musk invited competitors to expand the EV market together.
The gamble worked.
Rivals like Ford, GM, and Rivian grew the EV space, creating more demand for batteries, charging stations, and green tech.
And Tesla? Positioned as the pioneer.
Revenue skyrocketed.
Tesla became the most valuable automaker in history, worth $800 billion.
And EVs now make up over 14% of global car sales.
The lesson?
Good founders avoid competition.
Great founders use competitors to get ahead.
P.S. Many founders fear competitors and its holding them back.
Technical Support Manager at Viking Completion Technology
Uber in Dubai were quick to adopt Teslas but having ridden in many over the past few years, I couldnt help but notice how cheaply made they are and how quickly they deteriorate. They are being replaced now by BYD. Frankly the difference is chalk and cheese. You would swear you are in a Lexus or other high end Japanese brand. Make no mistake, the Chinese are after the global EV market and are very serious about it. Meanwhile Elon has been preoccupied with SpaceX, Twitter and now a new role in government.
Driving Product Success through Innovation and Leadership
This story tends to paint Musk as a generous innovator, but the reality is far more calculated. When Tesla gave away its EV patents in 2014, it wasnt a purely benevolent actit was a strategic move to protect Teslas dominance and extract value from competitors.
Heres the catch: competitors can use Teslas patents, but only if they agree not to sue Tesla for using their own intellectual property (IP). This creates a lopsided deal where Tesla gains access to innovations competitors might add while maintaining its own technological edge. Essentially, Musk opened the door, but only if others handed him the keys to their IP as well.
The result? Tesla accelerated EV adoption, surebut on Teslas terms. Competitors had to either share their advancements with Tesla or avoid using the patents altogether. Musk didnt make this move to help the industry out of goodwill; he did it to ensure Tesla could benefit from any improvements competitors made while solidifying its role as the market leader.
In short, the narrative of helping others masks a clever trap: Musk made it almost impossible for competitors to freely upgrade Teslas tech without giving something back.
One question ? Why do we call it Green Tech when the Mining Transport of Materials Manfacturing and Distrubution are conveniently ignored along with the infrastructure costs to support them EVs are not that Green
Richard Hilleman I stand corrected and chastised
So by your real numbers 38.8m the fact remains that for a huge majority of people they will never buy or own a new car. They are far more likely to a Hybrid second hand than an EV due to battery replacement stories/rumours/cost
All Hybrids I am aware of also run an ICE engine most of the time??
And with all the maths and smoke about the mighty Prius you still havent told us how or if a failed battery pack or cell from one can be recycled??
My issue is not with EVs or the mighty Prius it is with the ill thought out charge towards the mythical Green Future
At present we the British Public are being pushed towards an all Electric future whether that is practicle or not. No one asks the question, a Wind Turbine on or off shore what is its Life and at end of life what happens to it and its components, same for Solar Panels
EV, Lartop and Mobile Phone batteries. The rush towards Heat Pump technology again the vast majority of UK homes are unsuited due to construction to make them efficient will be horrendous, what waste will it create and how can it be dealt with.
Engineer, Innovator, Educator - helping build resilience to climate change
Some facts below to question the validity of this post. All of the items below was before 2014.
Nissan launched the Leaf on October 22, 2010. It was the worlds first mass-market electric vehicle and has since become one of the best-selling electric cars globally
The first company to invest heavily in electric vehicles (EVs) is often considered to be General Motors (GM). GM began its foray into electric vehicles in the 1990s through lease agreements with the EV1, which was one of the first mass-produced electric cars of the modern era
BMW launched the i3 in September 2013. It was BMWs first mass-produced zero-emissions vehicle and was introduced as part of their electric vehicle sub-brand, BMW i1. The i3 became available to customers in 2014 and has since been recognized for its innovative design and use of sustainable materials.
Technical Leader | Team and Talent Builder | Cyber Defense Expert | Problem Solver
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Seggy Segaran but history normally doesnt remember the first to create a new tech but first to successfully get it into mainstream marketing.
Apple didnt invent the smartphone, or the portable digital music player, or even the GUI based operating system. They *did* however, successfully market them into mainstream markets. Tesla has done likewise with electric vehicles.
??Full-Stack Engineer | ????7+ years delivering user-centric web apps | ????Expertise in React, TypeScript | ????Enthusiast with Growth Mindset
Its actually just propaganda that youre spreading:
*Why Teslas Approach Is Not Truly Open Source*
1. **Non-Assertion Clause**:
Teslas requirement that users cannot assert their patents against Tesla creates an **asymmetry**. Tesla can use a companys innovations without legal risk, but Teslas own patents remain protected. Open-source licenses generally do not impose such one-sided conditions.
2. **No Reciprocal Obligation**:
Open-source ecosystems often require contributors to share back any improvements (e.g., GPL licenses), ensuring mutual benefit. Teslas pledge, however, does not require companies to contribute their innovations or modifications back to Tesla or the public.
3. **Strategic Advantage**:
By removing patent barriers for others while simultaneously protecting itself from lawsuits, Tesla positioned itself to **benefit disproportionately**. Companies using Teslas patents gain access to the technology but surrender a key defensive mechanism (their own patents).
4. **Control of Good Faith Definition**:
Teslas vague definition of good faith leaves room for interpretation and selective enforcement. This uncertainty contrasts with the clear, standardized terms of established open-source licenses.
We should not be eating potassium lactate, methylcellulose, or natural flavors (which is not being transparent about what they put in their product) - we need to get back to eating fresh food that has not been ruined by fillers, dyes, pesticides or genetically modified. Processed foods in general are just not good options. I know many vegetarians and vegans who cant eat beyond or daring products without major stomach upset - myself included.
The Impact Expat. 23yrs Asia, MENA; Soft-power Offsets strategist; Econ. infrastructure; GCC Space edu/workforce Youth developmt pioneer; NASA Space Act Agmt; Venture Architect Fixer; Silicon Valley raised, Angel+LP
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Elon gets it. What always amazes me, never gets old (sadly), is that so many subscribe to idea of the zero-sum-game, the win-lose mentality, the static pie theory.
Folks, THE PIE EXPANDS when you collaborate, share, support mutual efforts. WHEN? WHEN will the concept of PIE EXPANSION catch on with the masses?!
Lisa La Bont In constant dollars, the size of the pie (US GDP) has more than quadrupled since 1970. But the population has only increased about 60%. So where is all that wealth gone? (I have my own ideas)
Senior Principal | Urban and Architectural Design Expert
And no state embraced his EV vision more than California, no state bought his cars more than California or lobbied harder for EV tax credits, yet California is the state he bashes continuously, doing almost everything to extricate his businesses from, because he doesnt like its politics. But its politics helped get him where he is today. His disloyalty runs deep.
8 Replies8 Replies on Neal I. Payton, FAIA, FCNUs comment
Senior Principal | Urban and Architectural Design Expert
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Quentin Neill wow! you found an article from an obscure newspaper published 2 1/2 years ago for a request (not a mandate) to reduce charging temporarily until a heat wave has passed. This was a blip that no one even remembers. Its true California has an electrical grid problem, which is being worked on. They also have a storage problem, because in fact they are producing so much wind and solar power, they windup having to sell it out of state. These are solvable problems.
Im all for figuring out how not to burn anything to get to the grocery store, but the reality is that this tech still has serious challenges. Ten years later, we still dont have the electrical generation capacity to handle the increased demand that EVs put on the grid. In the US, some 60% of electricity is generated by fossil fuels, not to mention the amount of fossil fuels needed to produce EVs. That makes it anything but zero emissions. The EV trucks (and I use the term truck loosely), are not currently capable of hauling a given load nearly as far as an ICE truck. And until Li-Ion batteries have the ability to charge during a Chicago winter. EVs will still be an expensive toy until these challenges are overcome. Then, the consumer ultimately will decide the fate of EVs.
Jeff K. I agree. I wonder though, is the issue of established and entrepreneurial companies simply emulating the tech instead of expounding the possibilities or has there been an intended oppression of new innovations? I am cautiously optimistic that the next 4 years will see some growth.
Patent Litigation Associate @ Nixon Peabody LLP | JD, Law
As others have said, Tesla did not give away its patents, but pledged to not sue rivals or other parties that did not, directly or indirectly: (i) assert their IP rights against Tesla; (ii) assert their EV-related patent rights against a third party; or (iii) markets Tesla knock-off product. The two concepts are very different. By pledging (instead of gifting), Tesla retains control over technological developments and innovation in the field while limiting how its competitors are able to use their IP. Tesla is not even unique in this regard, and many tech companies have similarly pledged their patents. Most recently, OpenAI (which seems to share a lot of headlines with Musk these days).
Business Performance Improvement. Mentor. Author. Course creator, Consultant. Presenter
Ships that pass in the night. Musk is apparently relevant today but in terms of astronomical time will in the blink of an eye, be no more than a name on a tomb stone, printing in a few books or some soon to be ancient, electronic references. The world will move on and he will be forgotten in a trice. He does not actually own anything anymore thsn the rest of us do. Only manipulate some of what is there anyway. Not really a big deal. Wake up one morning!!!!!
Business Performance Improvement. Mentor. Author. Course creator, Consultant. Presenter
Mark DeLuzio How do you know that if he is beyond your mind? You can only evaluate someone who is less bright than you! Are you suggesting that you are second behind him? Also, remember. Being intelligent does not imply that someone is also caring and nice! They could be positively evil. There is also emotional intelligence do not forget that.
Isnt there an argument though..much as EVs are almost pollutant free (other than particulates) that they consume large amounts of carbon in the manufacturing process. Almost 4 tonnes of CO2 are released during the production process of a single electric car and, in order to break even, the vehicle must be used for at least 8 years to offset the initial emissions by 0.5 tonnes of prevented emissions annually.11 Jan 2023 . Still i suppose you have to start somewhere, but are alternate fuels and keeping the ic engine not a valid argument?
Dr Tom Moir combien pensez-vous quun moteur thermique coute fabriquer en valeur CO2 ? La fonderie dun moteur thermique est bien plus polluante, sans parler de toutes les durites, filtres huile, filtre essence, et les pots dchappement avec des filtres particules saturs... il faut bien tout calculer sans reprendre les arguments bidons des anti VE qui ne connaissent strictement rien lautomobile.
One could compare this to IBM in the 1980s permitting competitors to build unlicensed clones of the PC. The label IBM compatible soon became a clandestine recognition of IBMs leadership. The growth of the market segment nurtured third party suppliers and software developers to strengthen the platform further. In the longer term the tide turned against IBM however, as others surpassed the company and IBM failed to keep up.
For 30 years Ive offered my hand in partnership to every competitor I every came across. Ive offered our IP, our vision, our strategies and non-compete agreements to anyone willing to engage. Not one has ever taken me up on the offer. If know my plan is all it takes to beat me, then it was a terrible plan and I deserve to lose. We are all only competing with ourselves to be our best. We can learn from others and grow. The more we work together to solve our shared problems with shared solutions the better off everyone will be. Its never a win-lose scenario, its always win-win or lose-lose. Innovation and diversity are the keys to success and survival. Be open minded.
Vice President, Intellectual Property Legal Operations at Tenneco
Definitely not free. They wont sue for patent infringement as long as you dont sue them for any violation of IP rights - not just patents - so that could be a big price to pay if Tesla infringes your trademarks or copyrights. And if you assert your patents against someone for any reason, even if they steals your trade secrets and use them in EVs, you are no longer protected. But Tesla can assert against those bad faith infringers. Its clever to say use our patents for free, but anyone who actually reads the pledge knows that its far from free.
Ali Bilawal in fact, not one company made use of Teslas offer to use their patents for free, because the offer came with very severe clauses on a wide range of penalties AND required that the company using Teslas Eav charging technology patents would make all their own patents available for free. This was making the offer completely unattractive.
And now Elon is fighting tooth and nail to keep lower cost EVs out of the US market so he can keep slinging 100 thousand dollar vehicles. Times change and so do people.
You make some great points that I agree with. Just one slight note ... Elon Musk is NOT the founder of Tesla .... He actually in a bullish way forced the 2 founders and inventors out of their own company, and then took it over.
The patents were also not FREE. It was a very limited amount of patents and in exchange the company using the patent had to give access to Tesla for all IP.
In otherwords, this is great marketing but complete nonsense in practice.
AI Systems Specialist: from Energy through Infrastructure (Data Centers) to Training and Inference.
I understood this concept when a successful entrepreneur told that when competition copies your idea, they are simply promoting your business. They will never be able to copy your vision, which is always a step ahead of your own ideas.
Elon is not afraid of people copying his ideas. Because he is a visionaIre indeed.
How do you not know that he was not the chosen electric car test manufacturer, and was allowed to evolve without a major challenge from the worlds largest car dealers?
However, this technology is not new and existed well before the last few resets (ie., floods and mud slides. etc) as did the sophisticated buildings with antennas on the top that we did not build in the last 2000 years or longer ago. Many of these buildings existed upright in America before the Spanish and British even showed up and they are a similar to architecture found around the globe.
We would see more in African if 1500s
through 1800s colonialist did not destroy them.
Nonetheless, he is super rich now and lives better than 99.9% of Americans and he was born elsewhere.
Good for him though!
Heck, the first American cars were electric.
Yet, fossil fuel is more convenient even if the risk of using it is horrendous. Yet, who knew about a CBA back then.
***Just think about all the fuel dumping in the ocean and the lands.
That is like dumping hazardous materials on a person when they are in the bath tub.
ICT System Operator / Observer @ Eugster / Frismag AG | Azure Cloud Certified | Koenig ( Microsoft Gold Partner ) PowerShell Administration Automation AZ-040T00 Certified | SAP S/4Hana Certified.
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Hmm ,a good idea. However my humble belief would be simultaneously a solar option too. And there are many more revolutionary green Ideas in the World out there 4 future generations our Mother Earth with Mother Nature to thrive and flourish. However let us first start on the miniscule sustainable level. ????His Holiness The Dalai Lama???? always says that Our current generations should pay more attention to Global warming crisis should contribute more Positive to resolve it : ))
