Elon's Multi-Business Strategy

I think a holding company that includes SpaceX and Tesla sounds like an interesting approach (not sure about SolarCity). He's mentioned a holding company as a possibility in an interview.

The holding company (SpaceX, Tesla, etc) then could pursue Hyperloop and electric planes in the future. And become the first trillion dollar company.

I get a strong sense that Elon doesn't intend to ever work on a Hyperloop. In contrast, I think he badly wants to do an Electric plane, but unlike cars it requires a major improvement in batteries (Elon is confident that current Li-Ion chemistry is "good enough" to allow for mass market EV's, because there is still room for the price to drop with manufacturing efficiencies).

A collaboration between SpaceX and Tesla on an electric plane makes a lot of sense.

Jeff and CO, I as well am very intrigued to see this picture forming of a multi-enteprise taking a swing at really major traditional businesses with potentially enormous markets, and the way these seemingly different ventures will intertwine and collaborate: EV's - Solar - Grid storage/CES is just genious. It's not just about battery tech and development, but I think we may also right now be witnesses to how the Nummi plant will not only be a plant for production of cars but perhaps in a few years Tesla will be the market leader when it comes to energy storage solutions (batteries - Li-ion, Metal-air? Al-Air? and who knows what is going on with capacitors???) and perhaps they are laying the framework for hughe production volumes when it comes to energy storage? With greater volumes comes economics of scale, which could solidify their position as market leader. If the treshhold is breached so to speak when it comes to the economics of energy storage v.s. arbitrage in grid storage for example, the potential market and revenue is gigantic.

I too have listened to and read most of Elon's interviews in the past. I think that the hyperloop is cool and something he will pursue, however we've heard him say that he had plans to release his thoughts and designs on this as non-patented open source ideas. That's not to say that for example Tesla would provide energy storage and other tech while SolarCiity would be well positioned to supply energy generation for the Hyperloop. The electric planes on the other hand I think is something he believes he could develop in-house and go to market with. Would this be a spin-off of SpaceX or from Tesla? Both scenarios are possible I guess. A space craft manufacturer making airplanes - why not? A car manufacturer making air planes - already happened (SAAB, Rolls-royce making plane engines etc.).

I'm getting more and more impressed with Elon Musk every day that goes by.

Johan said:

...] A car manufacturer making air planes - already happened (SAAB /...

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Nitpick: Wasn’t it the other way around? An aircraft manufacturer who began making cars…

SwedishAdvocate said:

Nitpick: Wasn’t it the other way around? An aircraft manufacturer who began making cars…

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Yes that is true.