Self-driving cars, Tesla vs. Google
An intriguing analysis on self-driving cars in Profit Confidential* states that Tesla Motors (TSLA) is primed for a "face-off" with Google and it could be a winner-take-all kind of fight. This got me thinking... what will it take to declare a winner? I concluded that it might be a mix of better technology, more sex appeal, and plain vanilla familiarity that will ultimately win the day. Let me explain.
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Trailblazing technology. Yes, early on, Google may have sparked a self-driving technology trend, but that doesn’t grant the company a natural monopoly on the nascent business of self-driving cars. At this stage, Profit Confidential* states that Tesla has already demonstrated a superior self-driving tech strategy when compared to Google. Last year, Tesla added hardware (sensors, sonar, etc.) to its outgoing fleet of Tesla Model S vehicles. Then, this year, the Model S fleet downloaded a new software update, adding state-of-the-art "Autopilot" self-driving functionality. Tesla demonstrated its own tech chops -- the company just performed a software update and suddenly, first-in-class autonomous driving features were available to thousands of Tesla Model S vehicles on the road today. Want more proof Tesla is taking the lead? Google just poached Tesla's Autopilot expert showing they want to play "catch up" with the fast-moving team at Tesla Motors.
Next, let's get superficial. Which brand has more sex appeal? Check out the exterior design of both the Tesla and Google self-driving vehicles...
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Face it, only a handful of customers will deliberately buy a car strictly for its self-driving technology. Everybody else will gravitate to a car that looks sexy and has self-driving functionality. Self-driving features will be icing on the cake, not the cake itself. When it comes to attracting a car buyer, beautiful design always plays an important role. Yes, Google's design is shaped to give its sensors a wide field of view. That may be useful but is it attractive to a car buyer? At the end of the day, people care how their car looks. Tesla Motors CEO Elon Musk gets this -- which is precisely why the Tesla Model S looks so much better than all of the golf cart inspired electric cars that came before it; he knew Tesla had to satisfy car buyers' aesthetic preferences. Now... let's move to the interior. Which one feels modern yet familiar?
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Look closely. Google chose to take out the pedals and steering wheel. Yes, it’s a bold move, but not one that is marketable to consumers any time soon. It’s one thing to buy a self-driving car when you'll be sitting in the driver’s seat, ready to take over if necessary. But sitting in the back with nobody behind a steering wheel is likely (at this time) to make folks pretty darn anxious. It just looks (and feels) a bit too unconventional for car buyers today. So the Model S isn't just good looks. Tesla Motors understands a design language must feel familiar in order for mass adoption and acceptance to occur.
Now, you might argue that Google's car is a pre-release prototype, focused on some future vision for autonomous driving. Maybe Google will just license their technology (i.e. Android). Nevertheless, the Tesla Model S today showcases a self-driving car (albeit limited) that will continue to have iterative autonomous driving improvements with its ongoing software updates. All the while Tesla knows how to package autonomous driving in a sexy yet familiar design that will appeal to car buyers -- both inside and out.
The winner is... Tesla Motors.
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*Source: Profit Confidential; Images: Google / Tesla Motors
