Although the SWOT assignment has passed, I am still intrigued about Tesla’s decision to release their patents.

From a blog post by Elon Musk, “If we clear a path to the creation of compelling electric vehicles, but then lay intellectual property landmines behind us to inhibit others, we are acting in a manner contrary to that goal.” This Decision made by CEO Elon Musk Created a great uproar in the auto industry because nothing of the sort has ever been done to such an extent.

In my opinion, there is a significant hidden advantage that Tesla gains through the release of their patents that could be the real reason behind Musk’s bold actions. By Tesla releasing their patents to whoever cares to use them fairly, they are letting the other major car companies absorb the major expenses needed to promote and advertise electric vehicles while they act like the “good guys” from this action. But realistically, Tesla gets free advertising for making the decision to release their patents into the public and they will be seen by the consumer as the first true pioneer of electric vehicle because their technology will be the base of new innovations. This strategic act gives Tesla an amazing reputation with the global market as they remain atop the luxury electric market.

http://www.teslamotors.com/blog/all-our-patent-are-belong-you