Here is Yet Another Telsa Revenue Stream from the Mind of Elon Musk
I’ll be the first to admit that I was not a big Elon Musk fan 4–5 years ago.
For some reason, (I most likely got this notion from the mainstream media) I had the impression that he was somewhat of a freeloader, taking advantage of the Federal goverment by taking millions in grants and subsidies on behalf of the company.
Man, was I stupid!
It wasn’t until I read a book about the man himself that changed my mind. Now I am a die-hard Tesla shareholder for the long run — purchasing shares whenever I can.
There is no doubt Musk is a genius. His ability to continually conjure up and squeeze new and future revenue streams from his dominating electric vehicle company is fascinating.
When I listened to his most recent talk with shareholders, yet another Telsa revenue stream was revealed by the man himself.
Transforming Electric Vehicles into a Global AWS-like Computer Network
Musk’s latest concept envisions Tesla’s extensive fleet of electric vehicles (EVs) doubling as nodes in a global distributed computing network, similar to Amazon Web Services (AWS).
This groundbreaking idea has the potential to revolutionize not only the automotive industry but also the world of cloud computing.
Here’s an in-depth look at this transformative concept and its implications.
Leveraging Idle Tesla Vehicles for Distributed Computing
Musk predicted that eventually Telsa will have 100 million or more electric vehicles spread all across the globe. And each and every one is equipped with powerful onboard AI hardware.
To Musk, this represents a vast and underutilized computational resource. When these vehicles are not driving, they remain idle, potentially for up to 100 hours per week.
According to Musk, Tesla aims to harness the vehicles’ computational power, creating a distributed computing network that would rival the capabilities of some of the largest data centers in the world.
Efficient Utilization of Resources
The brilliance of this idea lies not only its simplicity, but also in its efficiency.
Similar to how AWS uses its idle server capacity to offer cloud services, Musk plans to utilize the idle time of its soon to be 100 million vehicle fleet to provide distributed computing services.
This approach maximizes the utilization of existing hardware, transforming each Tesla into a node in what could only be described as a massive, global computational grid.
Scalability and Geographical Distribution
Every Tesla vehicle on earth could potentially contribute a kilowatt of efficient inference compute, with the total computational power reaching upt to 100 gigawatts.
This scale of distributed computing is unparalleled, and the global distribution of Tesla vehicles ensures low-latency services regardless of the user’s location.
Whether you’re in New York or New Delhi, the network’s extensive reach means high-speed, reliable computing power is always nearby.
Data Processing and AI Training
Tesla’s network could revolutionize data processing and AI model training. Researchers and companies requiring vast computational resources could tap into Tesla’s distributed network, leveraging its immense power for complex computations.
Real-time Data Analysis
Businesses could utilize this network for real-time data analysis, benefiting from the low-latency processing provided by geographically dispersed nodes.
Edge Computing
Tesla’s distributed network is ideal for edge computing applications, where processing is performed closer to the data source.
This is crucial for applications requiring immediate data processing and response, such as autonomous driving and IoT devices.
Economic Implications
This new service AWS-like service could generate substantial revenue for Tesla, potentially surpassing its automotive business. By offering computational power as a service, Tesla could tap into the lucrative cloud services market — the more cars they sell, the bigger their network.
Tesla’s unique position as a leader in both automotive and AI technology gives it a competitive edge in creating this distributed computing network. The integration of real-world AI capabilities into this network further strengthens its market position.
Not Just a Car Company
If you have not figured it out by now, it’s obvious that Tesla is not just a “car company”.
Tesla has and is continuing to disrupt the traditional idea of not only the automotive industry, but AI, robotics, energy storage, and self-driving — ideas that couldn’t have been imagined just 20 years ago.
I missed out on buying Amazon shares when everyone thought it just “sold books online”, or Apple just as Steve Jobs digitized music with the iPod.
I won’t be missing out on this one!
