Tesla Motors, Inc.
) announced that it will be sharing many of its patents with its
rivals in an attempt to boost the development of electric vehicles.
However, according to AP, CEO Elon Musk mentioned that automakers
who use Tesla's patented technology must not file intellectual
property lawsuits in the future.
This year Tesla has been issued 203 patents, which cover batteries
and other key features of its electric vehicles. 280 more patent
applications are pending in various countries. None of Telsa's
patents will expire before 2026.
At present, Tesla produces electric systems for
Toyota Motor Corporation
). This open sharing of patents will further enhance Tesla's
collaboration with other automakers.
Apart from patents, Tesla will reportedly share the designs of its
Supercharger system so that other electric car manufacturers can
equip their cars with the necessary specifications, thus allowing
their owners to use the Superchargers, as per engadget.com.
However, this sharing of design may lead to disclosure of some
intellectual property about Tesla's vehicles' components.
According to CEO Elon Musk, the interested electric vehicle
producers must subscribe to Tesla's business model related to the
Superchargers and must contribute to the maintenance and running
costs of the same. Musk also clarifies that the costs are not very
high, as many of the locations are rent free, and some of the
Superchargers are powered by solar panels. According to AP, Tesla
is planning to form a Supercharger-related partnership with BMW.
Electric vehicles occupy a very small portion of vehicles sold in
the U.S. market. Tesla believes that the low sales figure is due to
concerns over the vehicles' range and dearth of charging stations.
The stability in gasoline prices has added to the woes as it has
marred electric vehicle sales.
Expansion of Supercharger coverage should make more buyers
interested in electric vehicles. At present, Tesla has about 100
Superchargers spread across North America and Europe. The company
has recently opened a Supercharger network in China and plans to
open more than 200 all over the world including Japan.
Tesla currently carries a Zacks Rank #4 (Sell).
Fox Factory Holding Corp
), carrying a Zacks Rank #1 (Strong Buy), is a better-ranked stock
worth considering in the same industry.
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