The Amazon Business Model May Propel Tesla Forward

JUL 24 2018 BY EVANNEX 13


Tesla is more than just a car company. According to Miriam Tuerk at Forbes, “The electric-car company is working to decentralize power distribution and offer an alternative to today’s utility… Tesla is demonstrating that if the challenge goes unmet by traditional power utility companies, they’ll have their lunch stolen.”

*This article comes to us courtesy of EVANNEX (which also makes aftermarket Tesla accessories). Authored by Matt Pressman. The opinions expressed in these articles are not necessarily our own at InsideEVs.

Above: Elon Musk’s strategy encompassing both electric cars and clean energy solutions is on full display inside Tesla’s stores (Image: Tesla)

First, Tesla took on the auto industry, “reinventing electric cars as luxurious and powerful, albeit expensive for the average consumer. Today, those once unattainable vehicles are about to be offered on an affordable scale through the launch of ‘Tesla Model 3‘, expanding the company’s customer set. The company is now using those same tactics for its expansion into power utilities.”

Tuerk explains, “Tesla’s energy offering began with its Powerwall energy storage product, which again takes an existing technology and rebrands it, this time as a luxurious home-energy solution… [however] the question now is, can this product be made affordable enough to be installed on a massive scale? Elon Musk thinks so, and if Tesla’s electric-cars business is any indication, he has a good shot at being proven right.”

Above: A look at how Vermont’s Green Mountain Power partners with Tesla  (Youtube: MyNBC5-WPTZ)

It turns out, “like Amazon before it, Tesla is pursuing a two-pronged strategy. First, disrupt a legacy industry with a new model and approach, then expand to new industries by grabbing a stake in a key infrastructure sector. Amazon did this when it took on the retail industry with its foray into e-commerce, and then expanded into data centers, using its technology platform as the foundation of both businesses.”

To that end, Amazon is more than just an e-commerce business. Its AWS (Amazon Web Services) division now powers everyone from Netflix to AirBnB.

Above: Tesla’s Powerwall is being actively promoted along with the company’s electric cars in their stores (Image: Tesla)

Amazon reshaped retail and then transformed tech via the infrastructure that powers it. Taking a page out of Amazon’s playbook, Tesla’s strategy is equally (if not more) audacious.

After all, it’s not just the automakers and utilities that could lose market share to Tesla. Combining the company’s EV and energy divisions, it’s clear that “Tesla’s goal is to create an all-in-one, sustainable energy option, with the potential to compete with the fossil-fuel giants.”


Source: Forbes

*Editor’s Note: EVANNEX, which also sells aftermarket gear for Teslas, has kindly allowed us to share some of its content with our readers, free of charge. Our thanks go out to EVANNEX. Check out the site here.

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13 Comments on "The Amazon Business Model May Propel Tesla Forward"

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“Oh, interesting article.”
“Oh, it’s from EVANNEX”

EVANNEX: Key difference. Amazon made positive cash flows, even in the early days, from its core businesses– beginning with a focus on books. Amazon was focused and relentless. With Tesla, it’s a “new initiative a week”, and a very distracted CEO. Bezos is many things, but “easily distracted” is not one of them.

How’s Bezos doing vs Musk in the space industry? Blue Origin just a phallic toy hobby at this point. SpaceX eating everyone’s lunch for years. Soon Musk will be coming for Amazon directly when Starlink is established.

Russian troll……

When are you maroons going to learn how to read and learn the difference between a source and and aggregator? Do you attack google for what is in google news?

“Source: Forbes”

“Amazon made positive cash flows, even in the early days…”

Once again, we see the serial Tesla bashers are unable to stop themselves from making false statements about almost literally everything.

Reality check: It has been less than three years since started showing either a significant profit or a consistent quarterly profit. Don’t take my word for it; Google this for yourself if you doubt it!

For example:

I guess the short-selling FUDsters think our memories are as short as theirs are.

*sigh* 🙄

Utilities will ask their property in the state house to make up some rule to ban Tesla selling batteries.

The Power Companies in Virginia have a extreme amount of power like they have had the last hundred years and they are always rewriting the state power rules in the Power Companies favor.

There will be no solar or battery makers to the King

So, an Office UPS – Will be outlawed, eh? Better Be Able to Guarantee 100% Power Uptime for any Data Intensive Business ( Like ….. I don’t know … Maybe ALL OF THEM! ), Come Rain, or Hail, or Snow, or Ice Storm, then! (Powereall – is a kind of BIG UPS – for a Computer, but not so big for a Business – Which – A HOME – is, in Fact, a Business all of its Own!)

If they are abusing their power as a monopoly, then it is time to break them up, take away their monopolies, and force them to compete.

At federal levels, you need a filibuster proof 60. Locally, simply getting a fair deal can be hard for what are a minority of solar and/or battery users. Utilities know this, and will continue to pit customers upon each other. When the US (mostly) realized competition wouldn’t work in power, it let this genie out. Legislatures are left to solve problems (often influenced) state commissions are blind to.

I hope people are down-voting Ocean because they agree with her/him that what is happening is bad. I’m afraid that’s not the case, though…

Unfortunately, Ocean is telling the truth. Look at what power companies have already done to solar regulations, such as in Arizona and Nevada! The legacy industries are very entrenched and heavily invested into their local and state govts.

It is not “if”… the question is “when” the real legislative pushback on plans like this will take place in more States and at the Federal level.

Think about short-hop airlines in the age of fully autonomous vehicles.

Which is ‘better’ for a 400-mile trip? Drive to airport, park car, take shuttle to terminal, fly, reverse above only use a rental car. ~6 hours total. -OR- Hop into your Tesla Model 3000 and have her drive you the entire way. ~6 hours total, but, with no luggage overcharge, rental, parking fees or TSA hassles.

probably more audacious than Amazon since they were a giant undercutting tons of small stores. Tesla is a comparatively small org up against the multinational oil/auto complex who have taken control of government to take $$$billions of our tax money to destroy our planet. talk about subsidies…

Yeah – really, the only thing they have in common is the ability to leverage their core technologies to improve efficiencies in more than one sector of the economy.