The Tesla IPO is news that I can get excited about. There are a lot of people saying that Tesla is doomed to failure, while others are saying that Tesla represents some good in the automotive market, but that it will ultimately fade away. The conversation is based entirely around financial viability through the lens of the traditional automotive market. I would like to argue that Tesla should not be viewed through this lens, as the company represents a drastic shift away from the classic model. Tesla brings two very important things to the table: software-like iterative engineering and passion.
This concept of iterative engineering has been absent from the automotive industry in the past. Traditionally car companies spend years developing a car, from concept through to production. They then ride what is essentially the same car through at least 5 years of production before making any significant changes. Tesla, through Elon Musk’s software background, takes a different approach. They put out the first Tesla Roadster quickly. It was quirky, stripped down and had some flaws here and there, but it was still a great car.
Tesla did not stop and let the Roadster sit for years; instead they developed the concept further, coming out with the Roadster 2.0, and in the past week announcing the Roadster 2.5. Each subsequent version has introduced what equates to bug fixes, ironing out some of the glaring flaws. A lot of the changes can even be applied to previously purchased Roadsters, so that customers can receive the benefit of this ongoing engineering and improvement.
The second important thing that Tesla is offering the automotive industry is a sense of fun, excitement and passion. Having driven the Tesla Roadster, I can say that it is the most pure driving experience I have ever had. For all of its quirks, the Roadster is an absolute rocket at any speed, and the stripped-down Lotus platform gives you the sense that you are a part of the car. You experience the road, the speed and the agility in so many ways that most cars today dull down for the sake of comfort.
While these cars will not be for everyone, I do believe that every true automotive collector should have at least one of these early editions of Tesla, as they will undoubtedly go down in history as models that changed the way that the automotive industry works. Whether Tesla succeeds or fails in the long run post-IPO is inconsequential. What is important is that they are showing the world that electric cars can be just as much fun, and have just as much passion at their core as any gas powered model.
