Tuesday, January 30, 2018

Apple Co-Founder Steve Wozniak Is Losing Faith in Tesla, Elon Musk

Steve Wozniak, co-founder of Apple, isn’t so sure he can believe Elon Musk, founder and CEO of Tesla. While Wozniak says he still loves his Tesla, he also says he no longer “believe[s] anything Elon Musk or Tesla says.”

Ouch! According to CNBC these comments were made Sunday, during a Q&A session at the Money 20/20 conference in Las Vegas.

One of Wozniak’s biggest gripes is how Autopilot is perceived by the general public: “Tesla has [it] in people’s mind that they have cars that will just drive themselves totally, and it is so far from the truth, so they have deceived us.” While it’s true that Autopilot is often regarded as self-driving technology, some consider the technology to be a driver’s assistance feature rather than fully self-driving.

That being said, their website literally markets Autopilot as “Full Self-Driving Hardware on All Cars.” It’s easy to see how customers may be confused.  “Man, you’ve got to be on your toes all the time with it,” says Wozniak. Additionally, he thinks that Tesla utilizes “cheap tricks” to deflect Autopilot issues by claiming it’s in beta.

Is Elon Musk the New Steve Jobs?

According to Business Insider, Wozniak went on to say “can you really believe in him? Is he just a good salesman, like Jobs, and may not be there [in the end]?” But is comparing Elon Musk to Steve Jobs fair? While Steve Jobs was arguably more than a “good salesmen,” Wozniak may have somewhat of a point:

Apple is the largest company in the world by market cap, and interestingly enough, Tesla has been squaring off with General Motors and Ford for the top spot in the automotive industry. Apple often pushes back products that aren’t ready and has been known for hyping hobby products like Apple TV and the new HomePod. And much like Jobs, Musk is a showman; but in his own way.

Of course, these are just some observations on the surface. Apple has been a well established player in its market and in the world for over a decade now. While it’s had its ups and downs, it’s widely regarded as a success. Tesla, on the other hand, is still in it infancy; and, as Wozniak pointed out, is still playing second fiddle to many bigger vehicle manufacturers. What Tesla has going for them now is their brand loyalty and a lot of hype, and that’s not necessarily a bad thing.

Riding the Hype Train

Hype is extremely important in business. If you can’t get your customers excited about your company’s future, then it may not have a future. On the flip side, creating a lot of hype over nothing will only result in upset customers who feel cheated. Musk has shown that he’s willing to take personal risks for Tesla to succeed. Wozniak won’t be the only Tesla customer who loses trust as they try to grow, the question is: can Tesla rebuild that lost trust overtime?

“Not a Real Silicon Valley Boy”

During the Q&A session, Wozniak also vented about the various upgrades he’d added to his Tesla over the years. There was four wheel drive, camera and sensor upgrades, and more. All of this added to an already expensive car to give it more “self-driving” capabilities. It’s easy to see from a consumer standpoint how this could become frustrating. At some point the upgrades need to deliver on what’s being sold.

But this begs the question: isn’t that what technology is all about? From a consumer standpoint, maybe not. But for techies and people looking to push the envelope, there is an understanding that technology moves at alarmingly quick rates. Often in order to be first, and have the latest and greatest, there will be some sacrifices. According to Wozniak, Musk sent him an email after he cancelled an order for a Tesla that read “you’re not a real Silicon Valley boy,” and after Sunday’s rant Musk might be right. But are cars technically a Silicon Valley product?

Detroit or Silicon Valley?

Wozniak’s story illustrates a very real conundrum with new vehicles. Should they be high-tech gadgets or well-designed automobiles? The focus of the manufacturer is going to be on the market they’re trying to capture. Tesla sets out to do both, but may fall short when it comes to the quality that’s being offered by similarly priced vehicles from manufacturers like Mercedes and Audi. Alternatively, they provide a futuristic option that thinks outside of the metaphorical box.

Final Thoughts

It’s still early on in the game to really know where electric vehicles are headed. As Tesla continues to grow (and if they can rise to meet the hype) they could prove to be the vehicle that everyone is hoping for. Maybe then Woz will be a Tesla fan again. Until then, you may want to decide for yourself if you’re a techie or a gear head (or a little of both) before you make your next vehicle purchase.



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