Is Tesla More Disruptive To The US Car Market Than Toyota And Nissan Originally Were?

In its decade of existence, electric-car startup Tesla has accomplished many things the auto industry didn't think it could do.

But could Tesla Motors [NSDQ:TSLA] be as disruptive to the existing industry as were Toyota and Nissan, the two largest Japanese car importers during the Sixties, Seventies, and Eighties?

That's the premise of Adam Jonas, who leads auto-industry research at Morgan Stanley. His quote ends an article in The New York Times last Friday.

That column, by noted financial author James Stewart, looked at Tesla's opportunities and challenges from the point of view of a potential buyer.

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quizz - 8/28/2013 2:19:21 PM

+1 Boost

Not unless it's priced to compete with a Prius or Fusion.

Toyota/Honda were disrupted because 100% of new car buyers could afford them - they were priced for everybody.

Tesla right now is a rich man's car and is only disrupting people shopping BMW/MB/Lexus - a relatively small number compared to those shopping for a Civic or Yaris.

quizz - 8/28/2013 2:19:54 PM

+1 Boost

Correction, meant to say "disruptive" not "disrupted"

vdiv - 8/28/2013 3:33:43 PM

+1 Boost

It can be disruptive in a different way. It is the first (well, second really, after the Roadster) all-electric plug in car that is being taken seriously. The company wants to sell and service it exclusively shaking the dealership distribution model. The company also provides a lifetime of free/included charging through a nationwide supercharging network.

One can argue it is already disruptive considering all of the preoccupation of the media and sites like the AutoSpies, and the established car makers like GM announcing the creation of special committees to study Tesla.

quizz - 8/28/2013 8:16:56 PM

+1 Boost

vdiv, the article was comparing Tesla's disruption relative to Toyota's, and in that context, Tesla is but a fly.

Otherwise, you are correct, Tesla has proven many doubters wrong on so many levels. But in contrast, I believe that the first 2 years of the Prius served more of a disruption to existing paradigms than Tesla.

thetruth01 - 8/28/2013 3:34:28 PM

+2 Boost

Interesting premise, but when you have to resort to stretching credibility to prove a point, your theory falls flat.

Example....

"The Tesla Roadster alone, even before it struggled into showrooms late in 2008, was enough of a goad to GM that the company green-lighted the Chevrolet Volt range-extended electric car."

Honestly, Tesla in no way goaded GM to build the Volt. You can blame the Prius, the feds, but not Tesla. There's a lot of promise in the electrified vehicles, especially in luxury vehicles. Tesla arguably meets that promise better than anyone right now. And they may be spurring plug-in Panameras, S400s and ELRs. But this is in its infancy, so the author copped out and invented a causal relationship that simply does not exist.

ParadoX - 8/28/2013 4:51:05 PM

+1 Boost

Not until they get mainstream models out there and move out of the luxury arena.

aussie2u - 8/29/2013 11:52:19 PM

+1 Boost

I see Tesla as so much more than just a Roadster or Model S. I see buyers looking at the "powertrain" for use in electrical grids as offline storage. I see solar charging stations like Turnpike plazas. I see IOS/Android style firmware updates completely changing different aspects of the car. I see "battery swap technology" reevaluating everything a person thinks of when looking at conventional 100k+ mile older used cars.
Tesla is creating new dynamics in an around their technologies for so much more than just the "new sheet metal design" we all wait to see unveiled every few years.
I see disruption in everything here forward. For the consumer, it's a great thing to watch.