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Re:Elon Musk Had a Deal to Sell Tesla to Google in 2013 by r00fus on Monday April 20, 2015 @10:06AM (#9408142)
Can you explain why millions of customized variations are required?

Why not go the Apple approach - provide a small number of models that satisfy a pareto-split percentage (80%+ including the more profitable markets) and leave the remaining percentage either to aftermarket partners or competitors?

That's the approach Tesla has taken, focusing primarily on the highest margin portion, and filtering down.

Tesla isn't planning to be a "big player in the automotive industry". They plan on creating new product market, which just so happens to be compatible with the existing infrastructure. The incompatibilities (i.e., no ICE/gas) is a feature.

Re:Elon Musk Had a Deal to Sell Tesla to Google in 2013 by thanksgiving on Monday April 20, 2015 @10:57AM (#9408500)
I think they'd need at least three different products: a sedan, a minivan, and a truck. To the other commentator, I don't believe market segmentation is essential at this stage of the game yet. However, my information about it is mostly from this Joel Spolksy article http://www.joelonsoftware.com/articles/CamelsandRubberDuckie... so I don't know much about this topic.
Re:Elon Musk Had a Deal to Sell Tesla to Google in 2013 by nradov on Monday April 20, 2015 @12:08PM (#9409022)
Market share for sedans and minivans has been declining for years. Current mainstream USA market growth is mainly in small to medium crossovers (i.e. tall station wagons that sort of look like SUVs).
Re:Elon Musk Had a Deal to Sell Tesla to Google in 2013 by stcredzero on Monday April 20, 2015 @12:03PM (#9408987)
They are already mostly done with the estate/SUV Model X. Then, they are going to introduce the Model 3, which will be more like an ordinary family car. That will be three models.
Re:Elon Musk Had a Deal to Sell Tesla to Google in 2013 by sz4kerto on Monday April 20, 2015 @11:21AM (#9408671)
> Can you explain why millions of customized variations are required?

Usually that's what thing that differentiates >=premium cars from the rest. If you buy a Skoda, you get packages. If you buy an Audi (same conglomerate), you can customize everything as you like.

Re:Elon Musk Had a Deal to Sell Tesla to Google in 2013 by seanp2k2 on Monday April 20, 2015 @02:10PM (#9409820)
Because while people might be OK having the same $1000 iPhone 6 as everyone else, they're not OK having the same exact $80,000 car. They want an extra feature ere or there that the next guy with a BMW m5 doesn't have. They might want some extra carbon bits here or there. Cars are as much fashion as watches, and car customization is a huge industry / widespread interest. If dealers / mfgs can capture even a bit of the aftermarket industry (think simple stuff like chrome exhaust tips / different wheels), it's probably a win.
Re:Elon Musk Had a Deal to Sell Tesla to Google in 2013 by jcfrei on Monday April 20, 2015 @10:43AM (#9408395)
> Can you explain why millions of customized variations are required?

For the same reason that car manufacturers offer different models for the same product (personal transportation): like the A, C, E, S class (in the case of Mercedes). These classes allow a producer to differentiate between consumers with different spending power. If you offer just one product at one price you can't capture the whole market (ie. you sell too little / too cheap to rich people and can't sell to poor people).

Apple recently started going this way as well with the introduction of the Apple watch. If you look at all the models and options they can cover a very broad price range. Differentiating between the watch sport, the watch and the watch edition. Add to this the different sizes (38MM and 42MM) and the different bands and you get a very nice price continuum between 349$ and 17000$.

Re:Elon Musk Had a Deal to Sell Tesla to Google in 2013 by r00fus on Monday April 20, 2015 @12:06PM (#9409015)
And yet, the key tooling (chipset/OS/form factor) for those numerous combinations is a handful of choices in total.

Add in the fact that it's not millions of variations (really only a couple dozen now). Tim Cook famously said in some conference a while back that all of what Apple sells can be fit in on a table in front of him. I don't think that guiding vision has really changed.

Furthermore, it's not clear if the Apple watch will be successful. I wouldn't use it as a guideline for a successful product strategy - yet.