With the advanced technology, Tesla informs people that having a fully-electric sports car is no longer a dream. They differ their product from Nissan’s as they provide comfortable, high-performance and comfortable experience with their model S. However, people argue if Tesla a disruptive innovation, or not. Would it affect the sales of gasoline cars?
Michael Kanellos compare these two types of cars in a lot of aspects. First, we could look at the fuel price. Providing for an electric car requires a lower cost than a gasoline car. Although some people would say that in some countries (i.e., Germany and Australia) the electricity price is high, the fuel price is still way higher than the electricity. Second one would be the fuel efficiency. Electric car has a dominant lead in this area. Lastly, we could look at the range. No doubt, gasoline car wins in this game.
Although the above evidences are just part of the analysis, we can see that electric car has a competitive advantage in this competition. But, is Tesla a disruptive innovation? I would say no. Although it dominates in the competition to gasoline cars, it is still a new concept to people. Furthermore, the magnates in the automobile industry are still gasoline cars. They can offer a variety of vehicles whereas Tesla can only provide their only model–model S.