Sat. Sep 23rd, 2023
    General Motors’ Underestimation of Tesla: A Costly Misjudgment

    In a shocking revelation, it has been reported that General Motors (GM) dismissed Tesla as a mere group of engineers toying around with laptop batteries back in 2009. According to Nikola CEO Steve Girsky, who served on GM’s board, this dismissive comment was made during a recent Q&A session.

    At the time, Tesla was still in its early stages and not widely recognized as the force it is today. However, the automobile landscape would soon witness a paradigm shift, as Tesla’s innovative electric vehicles (EVs) revolutionized the industry. Fast forward to the present day, and Tesla has become one of the world’s most valuable companies, boasting an impressive $830 billion market capitalization.

    This anecdote sheds light on the significant underestimation of Tesla’s potential by established automakers like GM. While GM saw Tesla as a group of seemingly inexperienced engineers, the electric car manufacturer proved them wrong by pushing the boundaries of innovation and redefining the future of transportation.

    Tesla’s success can be attributed to its visionary approach to EV manufacturing and its unwavering commitment to sustainability. The company’s ability to transform the automotive industry with its sleek, high-performing electric vehicles has positioned it as a formidable competitor in the market. Furthermore, Tesla’s vast network of Supercharger stations has alleviated the concerns surrounding the limited range and accessibility of EVs, making them a viable option for everyday consumers.

    GM’s dismissive attitude towards Tesla in 2009 serves as a cautionary tale for companies that underestimate the power of disruptive innovation. It highlights the importance of recognizing and embracing emerging technologies, even when they may seem nascent or unconventional at first glance. The rise of Tesla demonstrates that investing in visionary ideas and challenging the status quo can yield remarkable results.

    As the automotive industry continues to evolve, it is crucial for established players to adapt and embrace new technologies. Ignoring or underestimating the potential of disruptive companies like Tesla can prove to be a costly misjudgment. GM’s dismissive comment from over a decade ago serves as a stark reminder of the consequences of failing to recognize and stay ahead of industry disruptors.

    – Original source: CNBC article titled “GM viewed Tesla as ‘a bunch of engineers’ in 2009, former board member recalls” by Michael Wayland [Link: CNBC]
    – CNBC []