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	<title type="text">Preet Anand | Vox</title>
	<subtitle type="text">Our world has too much noise and too little context. Vox helps you understand what matters.</subtitle>

	<updated>2019-03-06T10:14:15+00:00</updated>

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			<author>
				<name>Preet Anand</name>
			</author>
			
			<title type="html"><![CDATA[We Underestimate Tesla]]></title>
			<link rel="alternate" type="text/html" href="https://www.vox.com/2016/4/5/11585884/we-underestimate-tesla" />
			<id>https://www.vox.com/2016/4/5/11585884/we-underestimate-tesla</id>
			<updated>2019-03-06T05:14:15-05:00</updated>
			<published>2016-04-05T13:48:58-04:00</published>
			<category scheme="https://www.vox.com" term="Innovation" /><category scheme="https://www.vox.com" term="Policy" /><category scheme="https://www.vox.com" term="Technology" /><category scheme="https://www.vox.com" term="Tesla" /><category scheme="https://www.vox.com" term="Transportation" />
							<summary type="html"><![CDATA[Last week, Tesla pre-sold 300,000 Model 3 cars in less than 72 hours. That means the company received $300 million in deposits, worth more than $12 billion in preorders, in less than three days. The car won&#8217;t even be delivered for 18 months! For Apple to get the same amount of preorder revenue would require [&#8230;]]]></summary>
			
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<p>Last week, Tesla pre-sold 300,000 <a href="https://www.teslamotors.com/model3">Model 3</a> cars in <a href="http://recode.net/2016/04/01/tesla-model-3-orders/">less than 72 hours</a>.</p>

<p>That means the company received $300 million in deposits, worth more than $12 billion in preorders, in less than three days. The car won&rsquo;t even be delivered for 18 months! For Apple to get the same amount of preorder revenue would require 20 million iPhones to be ordered in 72 hours. That&rsquo;s incredible.</p>

<p>Even considering this, people underestimate Tesla. The reason is because people are still only talking about the cars &ndash; not the entire mission.</p>
<blockquote class="red right"><p>Tesla is accelerating the shift toward sustainable transport and energy consumption by producing the world&rsquo;s best electric cars and energy storage systems. &ndash; Tesla mission statement</p></blockquote>
<p>The Model 3 is the manifestation of the &ldquo;world&rsquo;s best electric cars&rdquo; part of the mission. However, there is more to &ldquo;accelerating the shift toward sustainable transport&rdquo; than just the manufacture of vehicles. The cars also need to be charged after being driven. This is a big challenge and an important undertaking.</p>

<p>For perspective, $400 billion a year is spent on gasoline in the U.S. to keep our cars fed. Even once the Model 3 comes out, one of the most compelling reasons to keep buying a gas car is the dense, already existing network of gas stations.</p>

<p>Tesla is conscious of this challenge and has been working to solve it with two different approaches. The first is the <a href="https://www.teslamotors.com/supercharger">Supercharger Network</a>, which is an international network of rapid charging stations. Even though Tesla cars have a 200+ mile range, that&rsquo;s not good enough for long road trips. The Superchargers provide free, rapid charging that is accessible from any major highway.</p>

<p>Superchargers now:</p>
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<p>Superchargers expected by the end of 2016:</p>
<div class="chorus-asset" data-chorus-asset-id="6415235"><img src="https://platform.vox.com/wp-content/uploads/sites/2/chorus/uploads/chorus_asset/file/6415235/0k8mbdoefeezpfd9u.0.png"></div>
<p>Looking at the map of Superchargers, you can see that Tesla is clearly investing here.</p>

<p>Tesla&rsquo;s second approach is by making it easier to charge the car at home with the Tesla <a href="https://www.teslamotors.com/powerwall">Powerwall</a>. Introduced last year, the Powerwall is effectively a home battery. While full-scale production won&rsquo;t start till 2017, and Tesla is already working on a new version, expect it to be able to rapidly charge a connected Tesla car. More importantly, expect the Powerwall to whittle away at the reasons not to own an electric car.</p>

<p>Looking at the top-left corner of Tesla&rsquo;s website, where it lists its products, you can see the importance the company places on Supercharger and Powerwall &mdash; they are on the same line as the Model S and Model 3.</p>
<div class="chorus-asset" data-chorus-asset-id="6415237"><img src="https://platform.vox.com/wp-content/uploads/sites/2/chorus/uploads/chorus_asset/file/6415237/0odwxg_6koeyh9t3_.0.png"></div>
<p>Today the Powerwall and Supercharger network support the sale of Tesla cars. Tomorrow, we may see them feeding electric cars beyond Tesla: BMWs, Toyotas, Ubers, Chevy Bolts and others. The same way Amazon has turned its fulfillment centers into a revenue generator, Tesla could turn the Powerwall and Supercharger into a profit center by selling access to other car companies.</p>

<p>The future Tesla makes millions of premium electric cars, improves them with over-the-air updates, provides the equipment for charging electric cars at home and operates the stations for &ldquo;fueling&rdquo; them when out. To value that company, you need to think about BMW&rsquo;s business (making cars) and Exxon Mobil&rsquo;s downstream business (selling gas) &mdash; it&rsquo;s massive.</p>

<p>(Full disclosure: As a longtime Tesla believer, I bought stock during the IPO, and recently bought more.)</p>
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<p><a href="https://www.linkedin.com/in/pr33t"><em>Preet Anand</em></a><em> is the CEO of </em><a href="https://getbluelight.com"><em>BlueLight</em></a><em>, a company focused on bringing 911 and personal safety into the digital age. BlueLight is used by people nationwide, and was featured in the White House&rsquo;s </em><a href="https://www.whitehouse.gov/blog/2015/09/16/launching-smart-cities-initiative-tackle-city-challenges-innovative-approaches"><em>Smarter Cities</em></a><em> initiative in September 2015. Previously, Anand was the youngest lead product manager in Zynga&rsquo;s history; he graduated from Santa Clara University with a degree in engineering physics. Reach him </em><a href="https://twitter.com/preetnation"><em>@preetnation</em></a>.</p>

<p><small><em>This article originally appeared on Recode.net.</em></small></p>
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