The firm’s ingenuity threatens to render longstanding services and products obsolete, wholly eliminating jobs, skills, companies and industries.
The Big 3
“Tesla has a culture that is like nothing I’ve seen,” Gene Munster, managing partner of Loup Ventures, recently told Benzinga. “I went to my first Tesla event last week, and the way I described it is that I came to meet a car, and I ended up meeting a group of stakeholders that have a shared mission. I don’t think that traditional auto has that kind of shared mission. Just everybody is passionate about making this happen. It was contagious.”
The Big Three lack the culture, he said, and their limitations are compounded by an unadaptable workforce.
“They have some legacy issues around labor that makes it difficult to compete,” Munster said. “In other words, I think Detroit could produce a similar car to Model 3 ━ it’s a lot of work, they have a long way to go ━ but that car would be more expensive than the Model 3, just the labor piece alone.”
Apart from those involved in traditional manufacturing, people who drive for a living ━ truck, ride-share and taxi drivers ━ are expected to be put out of work. Drivers education schools, no longer serving any purpose, will also likely close.
Insurance companies will lose profits from their automotive units as accident claims decline and rates drop.
Retail auto parts suppliers like O’Reilly…