Elon Musk on the ruling that you cannot buy a car directly from a manufacturer in the state of New Jersey:
It is worth examining the history of these laws to understand why they exist, as the auto dealer franchise laws were originally put in place for a just cause and are now being twisted to an unjust purpose. Many decades ago, the incumbent auto manufacturers sold franchises to generate capital and gain a salesforce. The franchisees then further invested a lot of their money and time in building up the dealerships. That’s a fair deal and it should not be broken. However, some of the big auto companies later engaged in pressure tactics to get the franchisees to sell their dealerships back at a low price. The franchisees rightly sought protection from their state legislatures, which resulted in the laws on the books today throughout the United States (these laws are not present anywhere else in the world).
The intent was simply to prevent a fair and longstanding deal between an existing auto company and its dealers from being broken, not to prevent a new company that has no franchisees from selling directly to consumers. In most states, the laws are reasonable and clear. In a handful of states, the laws were written in an overzealous or ambiguous manner. When all auto companies sold through franchises, this didn’t really matter. However, when Tesla came along as a new company with no existing franchisees, the auto dealers, who possess vastly more resources and influence than Tesla, nonetheless sought to force us to sell through them.
The reason that we did not choose to do this is that the auto dealers have a fundamental conflict of interest between promoting gasoline cars, which constitute virtually all of their revenue, and electric cars, which constitute virtually none. Moreover, it is much harder to sell a new technology car from a new company when people are so used to the old. Inevitably, they revert to selling what’s easy and it is game over for the new company.
Stop me if you’ve heard this one before: an outdated law being twisted to impede progress and maintain the status quo. Even better:
An even bigger conflict of interest with auto dealers is that they make most of their profit from service, but electric cars require much less service than gasoline cars. There are no oil, spark plug or fuel filter changes, no tune-ups and no smog checks needed for an electric car. Also, all Tesla Model S vehicles are capable of over-the-air updates to upgrade the software, just like your phone or computer, so no visit to the service center is required for that either.
This is so clearly the future of the automotive industry, so this is ultimately just delaying the inevitable. But consumers have every right to be outraged and New Jersey should be ashamed of itself.
When things are nearby, they’re concrete and you can see the details of the things. On the other hand, when things are far away, they’re much more abstract. So thinking about things that are near and far puts us in different mental states. When you think about things nearby, you see the details, and so when a creative idea comes along, the first thing you ask is, can it work?
[But] most creative ideas are risky and the risks are obvious when you look at the details, so when you think about it with this detail-oriented mindset, you’re more likely to shoot the idea down. On the other hand, when you’re thinking about things that are far away, you’re in a more abstract frame of mind and so the first question you ask is not will this work; you’re more open to seeing the creative possibilities.
There is a secret bond between slowness and memory, between speed and forgetting. Consider this utterly commonplace situation: a man is walking down the street. At a certain moment, he tries to recall something, but the recollection escapes him. Automatically he slows down. Meanwhile, a person who wants to forget a disagreeable
incident he has just lived through starts unconsciously to speed up his pace, as if he were trying to distance himself from a thing still too close to him in time.
In existential mathematics, that experience takes the form of two basic equations: the degree of slowness is directly proportion to the intensity of memory; the degree of speed is directly proportional to the intensity of forgetting.
Nearly finished reading Isaacson’s Einstein biography. Lots of interesting talk in the beginning of the book about how Einstein’s healthy disregard for authority and group-think allowed him to question some of the ‘unquestionable’ findings of folks like Newton. That was his mindset as a young man, and yet as he got older, Einstein became entrenched in his way of thinking and had trouble opening up his mind to quantum physics. While his issue with quantum physics was more philosophical than anything, it does serve as a reminder that continuing to question the status quo is hard work (and were this ability to continually question a muscle, it would need to be exercised on a regular basis).
The attached link is a highly regarded physics discovery that occurred this year, in which scientists used the classic ‘double slit’ experiment to question traditional mindsets (in truth, the results of their work are a bit lost on me ;-)
This isn’t the first time we have heard this one. Someone wake me up when it finally happens…
It is amazing that places around the world use the sport to define themselves and American’s can’t seem to make it happen. Meanwhile, Montreal is the best race I have been to; actually couldn’t imagine anything better.