Tesla’s Not as Disruptive as You Might Think

Publication Date: May 01, 2015

An investor in the electric car company Tesla recently issued a friendly challenge to HBS professor Clayton Christensen, the father of the theory of disruptive innovation: Does Tesla represent a new model of disruption, in which products start at the high end and move down? Christensen’s research associates investigated by posing five questions used to evaluate disruptive innovations, concluding that Tesla is actually a classic sustaining innovation–a product that offers incrementally better performance at a higher price. But the research did point to something that could disrupt the auto industry. “Neighborhood electric vehicles”–low-speed vehicles that resemble souped-up golf carts–are adding some features of automobiles and could, the team believes, eventually steal significant market share. This reprint contains three additional Idea Watch articles. “Why Job Postings Don’t Equal Jobs” visually depicts hires and postings for select industries, showing that in some (typically tech and other white-color industries) there are many more postings than actual jobs, while in others (typically low-skill, blue-collar roles) the pattern is reversed–meaning that this economic indicator is a poor proxy. “How Power-Hungry Bosses Keep Their Power” describes insecure managers who tend to isolate subordinates for fear of being challenged and suggests how companies can curb this tendency. “Financial Rewards Can Spur Innovation” highlights research showing that the right incentives can boost creative, conceptual work.

Pages: 8

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Tesla’s Not as Disruptive as You Might Think

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