Tesla needs to restructure
The case for building a holding company for Tesla, SpaceX, Neuralink, and The Boring Company
The business model piece is we’re always talking about competing more effectively. If you’re starting a company or career you don’t want to compete. You want to create a monopoly. We want to invest in a company that has a good plan to create a monopoly.
— Peter Thiel
As of early 2021, Tesla, Inc. has two branches of its business:
Automotive branch
Develops automobiles and the supercharger network, which are both expanding to different continents in 2021.
Energy branch
Develops solar panels and storage systems using batteries for domestic and commercial properties
While Tesla has two parts of its business under its incorporation, Elon Musk is also the CEO of Neuralink, The Boring Company, and SpaceX. With these other businesses taking up a great amount of time, building a holding company for all of them would help each of the companies share resources, partnerships, and brand recognition more readily and easily. There have already been whispers of Tesla and SpaceX’s engineers and designers sharing ideas and this would allow for a more open exchange of ideas and potential for new services.
For example, it could be possible for Tesla to utilize SpaceX’s Starlink network for internet connections for software updates, Neuralink’s data center could be powered by Tesla Energy, and a Mars exploring vehicle could be invented in coordination with Tesla’s engineering team.
Additionally, Elon Musk already owns X.com, which makes for a simple rationale for X being the name of the holding company.
Here’s a breakdown of all the different parts of the business structure:
- X
Holding company for Tesla Motors, Tesla Energy, Neuralink, Boring Company, and SpaceX. - Tesla Motors
Part of the business that manufactures automobiles, including the Model S, Model 3, Model X, Roadster, Semi, Cybertruck, and Supercharger Network. - Tesla Energy
Part of the business that manufactures Solar Roofs, Solar Panels, the Powerwall, and Commercial Solar Units. - Neuralink
Developing ultra-high bandwidth brain-machine interfaces to connect humans and computers. - Boring Company
The Boring Company constructs safe, fast-to-dig, and low-cost transportation, utility, and freight tunnels. - SpaceX
SpaceX designs, manufactures, and launches advanced rockets and spacecraft.
