Chapter 11 Developing and Managing Products
Tesla Motors was founded with innovation in mind. Launched in 2003 by a group of engineers in Silicon Valley who wanted to prove that electric cars could replace gasoline-powered automobiles, Tesla's mission is to accelerate the world's transition to sustainable energy. The Tesla Roadster was launched in 2008 and can travel 245 miles per charge of its lithium ion battery. There are now more than 2,400 Roadsters being driven in more than 30 countries. The Roadster was followed by the Tesla Model S in 2012. The Model S can travel 265 miles per charge and has room for seven passengers with 64 cubic feet of storage. The Model S was named Motor Trend's 2013 Car of the Year and achieved a 5-star safety rating from the U.S. National Highway Traffic Safety Administration. Next came the Model X, which Tesla began delivering in 2015, and the Model 3 began production in mid-2017. The Model 3 is Tesla's most affordable model to date, starting at $35,000. It has seating for five adults and can travel 215 miles per charge. The newest Tesla model available is the Model Y, which started production in early 2020 and is a fully electric compact luxury SUV. Improvements to battery life and safety features weren't the only upgrades Tesla had quietly been putting together. The company created a roar in the automobile industry when it announced in October 2016 that, moving forward, all vehicles produced in Tesla factories would have the hardware needed for full self-driving capabilities at a safety level higher than that of a human driver. This hardware includes eight surround cameras providing 360-degree visibility around the car up to 250 meters of range; two updated ultrasonic sensors; forward-facing radar that can see through heavy rain, fog, dust, and even the car ahead; and a new onboard computer with more than 40 times the computing power of previous generations. Tesla's move was unprecedented compared to that of other car companies, but not as much for them. While Tesla is creating cars with the hardware needed for self-driving capabilities, it does not have the software finished yet. It will update the software in the cars produced now using over-the-air software updates. This is a method that Tesla already employs to enhance performance and fix security bugs; it allows them to continually improve cars even after they are on the road and to stay ahead of automakers who do not operate under this model. Tesla cars currently feature an autopilot setting meant for highway driving and the Smart Summon setting handles low-speed driving in parking lots. Tesla still has to complete millions of miles of real-world testing before the software can be implemented. The company will run the software in the background while a professional drives the car and then compare what the computer would have done with what the person did do. The goal is for self-driving cars to be even better than humans at avoiding crashes. Tesla must also achieve regulatory approvals of full self-driving cars before it can legally drive on public roadways. Therefore, it is still unclear when customers (even those currently purchasing models featuring the new hardware) will be able to experience fully autonomous driving. New products are important because they do all of the following EXCEPT: _______.
a. extend resources
The addition of the self-driving hardware to Tesla cars in considered a(n) _______.
a. innovation
The Tesla Model 3 is what category of new product?
b. New-to-the-world product
Which of the following characteristics will NOT have an impact on decisions for early adopters of the Tesla Model 3?
c. Observability