Elon Musk Has Plans To Disrupt At Least Eight Established Industries

Elon Musk

MAR 17 2018 BY EVANNEX 35

8 COLOSSAL INDUSTRIES ELON MUSK PLANS TO TURN UPSIDE DOWN [INFOGRAPHIC]

In this modern day David and Goliath battle (multiplied by eight), one man is trying to take down a bevy of behemoth industries. CB Insights reports, “Elon Musk thinks and acts on a larger, more cosmic scale than we’re accustomed to… His main projects take on almost every major industry and global problem conceivable, and imagine a disruptive fundamental rewiring of that space or sector.”

*This article comes to us courtesy of EVANNEX (which also makes aftermarket Tesla accessories). Authored by Matt Pressman.

So which sectors are on Musk’s hit list? CB Insights looks at: “8 different industries where Musk and his companies operate to understand how they have begun to change,” transform and mold them into Musk’s futuristic vision. Digital Journal provides a top-line recap highlighting the scope and breadth of what Elon Musk is attempting…

Energy

Musk’s efforts with Tesla Energy (including the acquisition of SolarCity coupled with stationary battery storage) could completely alter domestic and international power utilities and the traditional utility business model. And Tesla is expanding beyond solar panels into stunning solar roof tiles. In addition, the company’s recent efforts in Australia already represent the world’s biggest battery installation.

Automotive

Musk also wants Tesla’s electric vehicles to be increasingly affordable. In addition to launching the lower priced Model 3, Tesla’s Autopilot is moving the company closer to the goal of having Level 5 self-driving cars. In turn, Musk’s Tesla Network initiative may eventually pose a major challenge to UBER, Lyft, and traditional taxi firms.

Telecommunications

Musk’s satellite initiatives at SpaceX could begin to alter how the public gets online as well as providing fast, affordable Internet. These efforts include providing the Internet to many remote communities currently without access.

Transportation

Efforts in the transportation sector include Musk’s brainchild, the Hyperloop, a proposed fifth mode of transportation, which aims to reduce the 6-hour trip from DC to New York to a mere 30 minutes. A Hyperloop is a proposed mode of passenger and/or freight transportation, already being tested extensively by Musk’s pal Richard Branson via Virgin Hyperloop One.

Elon Musk

Above: A few of Musk’s efforts to disrupt entrenched industries (Source: CB Insights)

Infrastructure

 Musk’s venture into tunnel boring aims to lower costs across the tunneling industry. Currently, CB Insights notes, a mile of tunnel currently costs $1 billion to dig. In late 2017, Musk’s tongue-in-cheek named “Boring Company” has already started digging in Los Angeles.

Aerospace

While SpaceX plans future flights to Mars, the company’s rocket technology could also revolutionize Earth travel as well, including a type of “spaceflight” trip connecting international cities like London and Hong Kong. This concept takes advantage of sub-orbital space flight routes around the globe. Musk believes with such a flight trajectory, you can reach anywhere on earth in under an hour.

Artificial Intelligence

Musk has expressed concerns about artificial intelligence triggering a world war; for this reason he is seeking to build better AI. Musk has been quoted as saying: “I keep sounding the alarm bell but until people see robots going down the street killing people, they don’t know how to react because it seems so ethereal.” In the interim, he’s funding OpenAI to research the matter.

Healthcare

Musk has been looking to merge healthcare and technology via a high-bandwidth, minimally invasive brain machine interface designed by Neuralink. Musk has said the company aims to make devices to treat serious brain diseases in the short-term, with the eventual goal of human enhancement.

Elon Musk

Outer space, electric cars, and energy production are just a few of the areas Elon Musk is trying to tackle (Flickr: Carsten Hensch)

Elon Musk’s ecosystem of initiatives outlined here, “take on almost every major industry and global problem conceivable, and imagine a disruptive fundamental rewiring of that space or sector.” CB Insights concludes, “These companies represent huge possible disruptions, some sized in the trillions of dollars, because their potential payoff is much more than winning a specific vertical or market — it’s the future of humanity itself.”

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Source: CB Insights / Digital Journal

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

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35 Comments on "Elon Musk Has Plans To Disrupt At Least Eight Established Industries"

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Get Real

Question is, how many of the shills, shorters and haters that come here to pollute this site work for or are invested in these 8 industries being disrupted???

ffbj

I think they need to include the advertising industry too, as Tesla does not pay traditional media outlets to push their products, they don’t have to.

So as regards to your point their is another powerful industry opposed to Tesla.
So stories on Tesla from CNBC, FOX, etc… are just garbage, and can’t be trusted.
Though they still run Tesla stories because they get clicks as stories on Tesla are popular, they don’t get money directly from them, as they do from legacy car companies that advertise with their channels.

dan

Disrupted production lines is more like it.

Bill Howland

Hehehe, yeah – as far as the ‘transportation’ category goes, it looks like his “Rust-O-Loop” is going to need a bit more work, but that subject has been pretty thoroughly rehashed here.

I think he has a much better chance for ‘disrupting’ the TOY Industry with FlameThrowers (and future toys Nail shooters, and Bathtubs).

mx

How many are just Russian Trolls.
They need to do something after the last election.
Putting Putin’s Pet into the White House has emboldened them.

Roy_H

Definitely overdone, just short of claiming Elon is a god.
However I am an Elon Musk fan and am eager to see how this all pans out.

It remains to be seen if his efforts in AI are disruptive or just taking advantage of new technology.

Should only be two entries under SpaceX as telecommunications and internet are the same thing.

Under Tesla, there is a list of aspects, but the only things that are actually disruptive is the push to popularize BEVs and self-driving cars.

Robert Weekley

While those SpaceX items are a duality, the other item, cheaper launches, leading to cheaper per pound payloads is the real driver, I would say, of both of those other aspects. If cheap enough launches happen, even Universities and their Students will be generaly involved via courses in Satellite Design! High Schools may also partner with such Universities, to build smaller Nano Satelites at the High School Level, too! Before you know it, Public, or Elementary Schools will be involved, as well! This means that SpaceX will have gotten involved in shifting Education, in some way, also!

Even now, with Real Electric Cars in the News, how many more schools are expanding to include Electric Vehicle building or EV Conversions, as a new course in their Curriculum!

Another Euro point of view

Before disrupting other industries I would first give them the advise of not disrupting themselves into bankruptcy. I mean their 2017 loss was a couple of billions and their revenues for the whole of 2017 was less than VW group’s profits for that year.

James

No Props dude, they gonna sell millions of 60k priced Model 3s soon. Most sold SUV worldwide which a 25k Toyata only sells 800k per year, but Tesla gonna sell 1 million 60k priced Model Ys per year according to Musk, so market cap will jump to 1T. In 10 – 20 years the’ll sell more cars then Apple IPhones

Hart Ed

The simple truth is that a growing company eats cash. A stable company generates a lot of cash. A dying company often generates even more cash…until it winks out of existence. The best metric for a growing company is the product margins, which in the case of Tesla’s Model S and Model X seem to be quite good. And SpaceX is churning out good profits by all accounts.
In short, I think it is well worth our individual and societal whiles to support Musk’s teams.

Another Euro point of view
Their product margin is not comparable to other car makers as: 1/ it is based on the retail price while for Ford, GM & others it is based on price as sold to dealership. All that would be OK is they included in their gross margins all their distribution cost. But they don’t. This is why Tesla post in its P&L a Selling, General & administration expenses figures which is completely hypertrophied as compared to the rest of the car industry. Also, Tesla does not include their R&D expenses in gross margin calculation while other car makers does. To have a margin that could be compared to the rest of the care industry it would need to be calculated again completely differently. The truth is there no obligation for a car maker to calculate gross margin a certain way so what does Tesla is perfectly legal. Now when I look at the US reporting format (10k etc… ) it is nothing short of paradise to make speculative bubbles , our Euro type of reporting has in average, depending from country to country way less flexibility. It is a problem because that mess is eventually exported to the rest of the… Read more »
TheWay

Except you are not factoring a few MAJOR things.
1) Since Tesla does not have a dealership model, their costs on their balance sheet accounts for their manufacturing cost, but does not factor in the sale of the cars that are out for delivery. This is even more of a problem as Tesla is growing rapidly. But this problem is only in terms of balance sheet, not reality.

2) They have a 3-5X higher R&D as % of revenue compared to other automakers.

3) Even if you factor those stuff in, Tesla still has higher gross profit margins

Another Euro point of view
You exactly point to the problem. Your opinion is that Tesla gross margin is higher than the rest of the industry, I think the opposite, and, except for those having insider information there is no way to know who is right with the current US accounting and reporting system. US accounting system does not have a standartised chart of accounts with strict federal laws about how the expenses/incomes should be allocate to those accounts. Because of such absence , there is a great deal of opacity. It create uncertainty except, of course, for those having access to insider information as is often the case with big investment banks like Goldman Sachs or Morgan Stanley. It means that, as opposed to continental Europe, you can have huge swings in stock price over a 3 days period (see Tsla, going up 5% then down 5% with 48 hours) has level of uncertainty is so huge that people react with drama to whatever little trivial piece of information. To whom this shady system benefits ? I would say to people having that insider information (often the investment banks). For example how did analyst from Morgan Stanley know so early in 2017 that Tesla… Read more »
mx

Of more concern is what the “Value Analyst” on Seeking Alpha has pointed out. The major automakers are so in debt that they Can Not Respond to the Tesla challenge, and their shareholders don’t have the stomach to compete.

mx

I have Far Higher concern with Exxon.
With GE and Siemens layoffs of 50% in their Natural Gas Peaker plants, and future orders drop of 50%, that means that not only is Oil a Stranded Asset, but now Natural Gas is a Stranded Asset.

And I think Exxon, headquarters located in Texas, gives Exxon management the excuse they need to run their company, not with a Business Profit Agenda, but with a Republican Agenda. And that’s bad business.

Exxon CAPEX spending should be larger and 51% should be Dedicated to moving into Solar and Wind projects and Battery Storage.

And they’re not doing anything of the kind.

Igor

Yeah, and they have the supercharger network, and OTA Updates, and next year all Teslas will be equipped with Full Self-Flying Capability Hardware

G2

Musk is eother a full blown brilliant villain (like the Simpsons ‘Scorpio’) or the best thing to happen to actual capitalism in 100 years.

Alan Drake

Elon Musk’s greatest talent is raising venture capital. He keeps creating new images to distract from unprofitable current projects.

I know about Tunnel Boring Machines and his Boring Company is {yawn}. TBMs have been reducing costs (inflation adjusted) by 3% compounded/year for decades. Elon Musk is trying to push that cost curve down a little faster.

TBM drives vary in cost by the rock & unexpected problems they encounter – but $1 billion/ mile ?

In the uninhabitable highlands of East Iceland a $950 million project drilled 46 km of 6 to 8 m diameter tunnels, built a 190 m high dam, built 640 MW underground power station plus almost 100 km of transmission lines.

The 3rd Water Tunnel in New York City was nowhere that expensive (and it had to be clean enough for potable water).

The Gotthard Base Tunnel was 15 billion Swiss francs for two 58 km tunnels plus access tunnels – and included track & electrification for high speed rail.

So the Boring Company ?

Nothing new or impressive.

TheWay

You are speaking out of context. The 1 billion per mile referenced was the cost of the LA subway expansion. He never claimed it costs that for all projects, just said that it can cost up to that much giving the LA project as an example.

And why do all the haters get some delusion that Musk is doing things as a distraction? Total nonsense. I guess this is what it means to be in denial?

I don’t understand why people are delusional about net profitability. A healthy growing company should NOT be posting net profit! Because net profit is a WASTE OF MONEY! Posting net profit is equivalent to throwing money in the trash. This is why most businesses in the US have 0 net profit.

A healthy growing company should reinvest all their net profit into growth. Only when you stop growing do you start posting net profit. Because at that point you have nothing to spend the money on so you begin hording it for purchasing other companies, a rainy day, or dividends to investors.

Doggydogworld

It seems my first reply got lost. At least the new design is pretty!

“A healthy growing company should NOT be posting net profit!”
“A healthy growing company should reinvest all their net profit into growth.”

You contradict yourself. How can you reinvest net profits if you don’t have net profits?

“Because net profit is a WASTE OF MONEY!”

This is ridiculous. Healthy growing PROFITABLE companies (e.g. Intel in the ’70s, ’80s and ’90s) can reinvest their profits into factories and equipment. UNPROFITABLE companies, like Tesla, must constantly raise money from investors just to pay salaries and other obligations. They must then raise ADDITIONAL cash to invest in factories and equipment.

mx

Wow. Take Accounting 101 soon.
If you increase your build of plant and equipment, that swallows up your profit, you won’t report a profit, do you understand that?

Review the last 5 years of Tesla’s balance sheet, plant and equipment. You will see Geometric Asset Growth. That’s where the profit has gone.

Doggydogworld

“If you increase your build of plant and equipment, that swallows up your profit, you won’t report a profit,”

That’s incorrect, at least in the US. Capital expenses (factories, equipment, etc.) DO NOT affect the income statement.

Look at Intel’s 1980 annual report (link below). They reported profits every year from 1971-80 and invested all their profits into factories, equipment and such for growth. Some years they raised capital from investors so they could invest even more cash into growth.

Tesla DOES NOT make profits. They raise cash from investors to pay salaries, rents and other expenses. They then raise MORE CASH from investors to fund all capital investments. Their assets grow each year because each year they raise money from shareholders and lenders.

These are just facts. Tesla states these facts clearly and openly in their SEC filings. I suggest you read them.

TheWay
It isn’t contradicting at all. Instead of posting net profit, you redirect the cash towards rapid growth. In this way you avoid paying taxes on the income since now it counts as an expense. If you post net profit, you’ll just end up paying taxes on it and lose money you could have reinvested. (speaking from experience) And your example of intel is funny. 1968 – 446 million loss! (That is 3.2 billion factoring in inflation) 1969 – 1.91 billion loss! (That is 13.36 billion factoring in inflation) 1970 – 1.45 billion loss! (That is 9.55 billion factoring in inflation) 1971 – 513 million loss! (That is 3.2 billion factoring in inflation) So much for being profitable. They lost more money in 1 year than Tesla lost in their ENTIRE lifetime. It seems my first reply got lost. At least the new design is pretty! “A healthy growing company should NOT be posting net profit!” “A healthy growing company should reinvest all their net profit into growth.” You contradict yourself. How can you reinvest net profits if you don’t have net profits? “Because net profit is a WASTE OF MONEY!” This is ridiculous. Healthy growing PROFITABLE companies (e.g. Intel in… Read more »
TheWay

Damn, I wish the comment system would let us edit our reply. I accidentally copy and pasted your reply at the bottom of mine.

Here is a fixed up version for less confusion:

It isn’t contradicting at all. Instead of posting net profit, you redirect the cash towards rapid growth. In this way you avoid paying taxes on the income since now it counts as an expense. If you post net profit, you’ll just end up paying taxes on it and lose money you could have reinvested. (speaking from experience)

And your example of intel is funny.

1968 – 446 million loss! (That is 3.2 billion factoring in inflation)
1969 – 1.91 billion loss! (That is 13.36 billion factoring in inflation)
1970 – 1.45 billion loss! (That is 9.55 billion factoring in inflation)
1971 – 513 million loss! (That is 3.2 billion factoring in inflation)

So much for being profitable. They lost more money in 1 year than Tesla lost in their ENTIRE lifetime.

Doggydogworld

Please show your source. Here’s a link to Intel’s 1980 annual report which shows the company was profitable every year from 1971 through 1980, growing net income a hundred-fold from 0.9M to 96.7m.

https://www.intel.me/content/dam/doc/report/history-1980-annual-report.pdf

The graph also shows Capital Additions (investments in factory, equipment, etc.) which roughly parallel net income. That’s a healthy, growing company investing all its profits in growth. Tesla is a completely different story.

Doggydogworld

Also, tax income is completely separate from GAAP income. Sometimes they aren’t even close. That said, the IRS absolutely does not let you deduct the entire cost of a new factory in a single year. You must depreciate it over the useful life (e.g. 20-40 years). So your tax avoidance strategy won’t work. Not that it matters for Tesla, their operations lose so much money that income taxes are the last thing they have to worry about.

None of this is means Tesla is doomed to fail or anything like that. Their business model is unusual for a car company, but it’s working very well for them.

Pushmi-Pullyu

“And why do all the haters get some delusion that Musk is doing things as a distraction? Total nonsense. I guess this is what it means to be in denial?”

Some of them probably do actually believe the B.S. they post, but I submit those are just the minority being used as “useful idiots” by those who churn out the FUD; by those who know perfectly well that none of their Tesla bashing claims are true.

My “favorite” Tesla hater conspiracy theory is the one that says Tesla Inc. makes compelling, much-in-demand cars only to promote a stock swindle!
😆 😆 😆

Timmy

How about car insurance?

TheWay

He should introduce a PayPal competitor.

Ricardo

Only 8? But that’s during one weekend right? Then, the week after he will be disrupting at least 15 more? elon the god. Lol, how pathetic. Very disappointed you have chosen not to follow my advice insideevs. Keep publishing this drivel if that’s what brings you clicks.

Eddie
The biggest issue Elon Musk faces today is huge success stories. He is a marketing genius. It is the only segment that all of his companies have not had to put two cents into and he receives free advertising daily. He might have something with spacex due to the fact that the United States has backed out of that segment. He can continue to get funding from our taxpayer dollars to keep that going. Hyper Loop, DOA. We already have Hyperloop in big cities they are called the subway systems, or mass transit. If the US put two cents into that project and does not support mass transit around the country that would be a crime. Electric cars. There’s a place for those but it’s not mass consumers. The cars available today are for local commuters and Local errands cars. If family of four going on a 400 mile road trip totally not practical. Healthcare bigger players in the game right now with a Headstart this business model DOA. Energy segment- can’t complete wit fossil fuels without Federal funding. When federal subsidies go away sodas solar in the US. It is a marvelous idea for some of the virgin islands… Read more »
Pushmi-Pullyu
“He might have something with spacex due to the fact that the United States has backed out of that segment. He can continue to get funding from our taxpayer dollars to keep that going.” I confess to not understanding the claim that the U.S. — or rather, NASA — has “backed out” of space travel because it would rather pay SpaceX less money — a lot less money — to do the same things that Rockwell and Boeing formerly did. As a U.S. taxypayer, I’m very glad to see a move toward ending the huge corporate welfare structure, with NASA creating make-work activities to support thousands of unneeded white-collar workers. That was arguably necessary in the Mercury-Gemini-Apollo era, with the “Man In Space Soonest” goal. But following the lunar landings, there needed — and still needs — to be a shift towards building and maintaining a fleet of working, reusable orbital rocket launch vehicles, rather than continue to build extremely expensive and very complex rockets which are each used once and thrown away. And let’s not forget that the reason the plug was pulled on the previous NASA manned launch system — the Ares/Constellation — was that it was badly… Read more »
Get Real

It looks like Eddie is our latest new username troll to join Ricardo and others from Seeking Liars, or maybe an existing shill, shorter, or hater who re-registered a new username to spout their anti-Tesla and anti-Ev propaganda.

Dan

Every one of elon musks projects is a fail except spacex. Tesla is bankrupt. Boring company, neuralink, and hyperloop are idiotic and not going anywhere.

The “success” of musk is due entirely to ignorant, science-illiterate dupes handing over their money to a lying conman. Musk is rich despite losing money on every business. His devoted, deluded fans should ask where musks money is coming from.

Sonya Wiley

Hey Elon(family)
That’s why I’m here to keep you on track and you’ll be fine stay focused.