Tesla Motors Inc (NASDAQ:TSLA) investor says company is disruptor so higher margin for error – whatever that means – see the video below

Tesla Has a Larger Margin for Error because It’s a Disruptor

Published on Jul 12, 2016

Fortune 500 companies don’t have as long of a leash

Tesla Video:

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Charles Koch was on this stage yesterday and was talking about that actually he
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said he personally would have if he were a public company he would have been
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fired five times and it’s allowing failure inside the company that’s
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enabled them to succeed but why is that so hard for big companies to get their
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heads around
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well I i think it’s some of that’s an alibi i think it’s if people want to say
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I’ve got it my investors aren’t going to let me create tomorrow I I question that
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a little bit i mean you have to do both
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I mean you know look at the our company a man just since I’ve worked their butt
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and you know Jeff Immelt send some very uncomfortable and unpopular things
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investing into digital future is expensive it’s only you know now i think
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investors are starting to understand what it means and we’re starting to come
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to terms with that globalization these are things that at first
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you’re not sure what they’re going to lead to i think the the maybe the
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traditional things r 1 is the cost of failure is so much more public
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so if uh and you don’t necessarily the same permission as as the starter for
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the disruptor so if you had a Detroit company have the autopilot failure that
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Tesla just had
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yeah that would it basically halt all innovation in in one of those car
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manufacturers for really know something yeah because because you have lots of
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people that would be on the firing line of of that organization because of how
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public that would be in and all of the risk and all the costs of uh of the the
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publicity around etc so so you when you have a company that that is a disruptor
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and doesn’t have to
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they don’t have the same exact kind of position they they’re known for being at
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the bleeding edge where things will break that gives them a permission to be
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able to do far more innovative things that’s the first thing that the other is
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on one thing that we found in the course that we didn’t quite realize at first is
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there’s a lot of on
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there’s a lot of things in a sort of Industrialists or fortune 500 companies
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kind of value network or or set of partnership relationships that prevent
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them from being innovative so for instance if your suppliers are also
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behind then fundamentally you would have to go begin to work with a new set of
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suppliers which would then disrupt long-standing relationship that you’ve
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had for a very long time if on if in the case of like a Ford or GM if what you
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normally do is sell through your dealership network but the future of
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self-driving cars were and on-demand transportation is nothing to do
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the ocean networks then fundamentally you’re going to have to disrupt your
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distribution channel and I for you know a bunch of obvious reasons including you
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know financial incentives and just how organizations are designed to have a lot
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of organizations that don’t want to go bring their business models and enters

Tesla Motors Inc (TSLA) Has A Larger Margin For Error Because It’s A Disruptor
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