Tesla is in the process of discovering that the electric car was in fact never a disruptive innovation in the Christensen sense. It's a sustaining innovation. Under the sustaining innovation model, the upstart is not likely to succeed because the innovation plays the the incumbents' strengths.
It's just taken time for the industry to respond.
I say this because I interpret Tesla'a nonstop obsession with self driving as an admission they're in a race they will lose. The feature is a gizmo that appeals to techies and can, for a time, prop up sagging unit margins. But it's a nice to have bobble at best compared to the real prize of dominating the car market.
Christensen book, The Innovator's Dilemma even specifically identifies the electric car as a potentially disruptive innovation, mapping the path an upstart could take to eventually dominate the car market. Tesla never took that path, and instead did the exact opposite. It sold social status to wealthy customers rather than basic transportation to an abandoned market.
It's just taken time for the industry to respond.
I say this because I interpret Tesla'a nonstop obsession with self driving as an admission they're in a race they will lose. The feature is a gizmo that appeals to techies and can, for a time, prop up sagging unit margins. But it's a nice to have bobble at best compared to the real prize of dominating the car market.
Christensen book, The Innovator's Dilemma even specifically identifies the electric car as a potentially disruptive innovation, mapping the path an upstart could take to eventually dominate the car market. Tesla never took that path, and instead did the exact opposite. It sold social status to wealthy customers rather than basic transportation to an abandoned market.