Tesla - Focus on Simplicity

Tesla is another company that benefits from being very rigorous about simplifying their business by offering only a few models of car.

They are also religious about simplifying the designs of their car. If you look inside of current Tesla car what is notable is how simple (think cheap!) these cars are to manufacture relative to their competitors.

And yet they are able to sell at a price premium well beyond what their competitors sell at.

Tesla make their competitors look complicated. A modern Tesla has a steering wheel with a few attachments and a computer screen which is the same form factor in almost all their models. Compare that to other car manufacturers where almost every car has a different set of complicated custom dashboard filled with widgets. See this video.

Tesla’s simple design is giving them economies of scale and profitability in the long term that the other car manufacturers can only dream of. It allows Tesla to also have bandwidth to addressing other parts of the consumer experience by making sure that their super charger network is reliable and works well. See this video: https://www.youtube.com/watch?v=vXzuFprlyrw