Feeds:
Posts
Comments

It’s time for Elon Musk to think about turning the Tesla CEO job over to someone else

spacex elon musk mars colonization Musk. Mars. SpaceX/YouTube

You may have missed it, but this was the most head-warping week in Elon Musk’s life, for anyone who has been following the man’s adventures for the past decade.

Early last week, at the 67th International Astronautical Congress in Guadalajara, Mexico, Musk outlined his master plan to start colonizing Mars in less then 10 years, using his private space company, SpaceX, to realize his ambition to make humanity an interplanetary species.

Later in the week, he had to send an email around to Tesla employees reminding them not to engage in discounting on vehicles sales.

Life on Mars versus … come on down!!!

The contrast was vivid. I think I’m safe in saying that no other captain of American industry has ever grappled with something so visionary and captivating on the one hand and so drearily mundane on the other. Henry Ford wasn’t trying to go to the Moon at the same time he was building the Model T.

Too much success

Musk has become a victim of his own success. There hasn’t been a viable new American car company created since the 1930s, but in just over a decade, Musk has forged not just a new automaker, but also a carmaker that has pushed electric vehicles forward for the first time since they lost out to internal-combustion engines over 100 years ago.

And although a mission to Mars has been much discussed since the late 1960s and the moon landings, the assumption has always been that NASA would undertake it. With SpaceX, Musk is striving to remake that notion. (NASA may still do it, but NASA lacks a charismatic leader to stand up and articulate the way it’s going to happen.)

spacex elon musk mars colonization Why stop at Mars when can go to Jupiter? SpaceX/YouTube

As Tesla progresses toward being a mass-market automaker — leaving its high-tech, luxury, niche existence behind — Musk will have to deal with more head-warping. Manufacturing and selling cars isn’t very space-age; rather, it’s plug-and-chug. Supply-chain management rules the day, and sales are largely transacted one at a time, between a buyer and dealer.

Tesla wants to cut the dealer out of the picture, selling directly to the consumer, so Musk doesn’t even have that buffer. He himself has to lay down the law if he detects any slippage in his full-price-only business model.

He’s certainly price conscious when it comes to the cost of space travel — he wants to make going to Mars as cheap as buying a Tesla Model S. But the ambition required to even bring that calculation into the picture is an order of magnitude greater than what Musk has achieved with Tesla. Rocket science is, after all, rocket science.

A hard choice

I don’t personally want Musk to stop running Tesla day-to-day so that he can focus all his energies on SpaceX. But I also realize that even if Musk moves the needle just a bit on “backing up the biosphere,” as he likes to put it, in case that wayward asteroid heads our way, then that’s where his attention should be. There’s no shortage of talented leadership in the auto industry, and Tesla could probably use a more experienced hand to guide it into its next phase.

elon musk Parting would be sweet sorrow. Justin Sullivan/Getty Images

I don’t think Musk wants to “retire” as CEO of Tesla, either. Ultimately, he sees electric cars and a mission to Mars as linked; the former gets us off fossil fuels and the latter provides us with an escape hatch.

But priorities are in order, and as much as Musk, a creature of Silicon Valley, has learned the lesson of Steve Jobs and Apple — companies that sacrifice their visionaries in favor of stewards do so at their peril — he doesn’t appear to fully understand just how daunting his objective has become.

Jobs wanted to sell more computers, music players, and phones, with cool design values. He never said anything about leaving orbit and heading for a red world 34 million miles away.

Musk has his issues and his critics, and he isn’t always the finest business leader in all the land. But there’s really never been anyone else like him in American business life — or really science and technology life, either. You have to go back to Thomas Edison at least to find anyone even close.

Tesla is an important company, but for several years now, I’ve had the sense that SpaceX is more important. Space has always been something that nations do. But Musk is changing that (even though NASA is still his biggest client). The Mars plan he laid out is astonishing. And he should now allow it to take up all his time.

Long-awaited MacBook Pro could include keyboard touch screen for function keys

Sep 29, 2016, 7:20am PDT Updated Sep 29, 2016, 8:16am PDT

Apple is reportedly working on an updated version of the MacBook Pro that could launch as soon as next month.

The new version will have a second, touch-sensitive screen situated above the keyboard, according to MacRumors. The Cupertino-based company plans to have the laptop ready to ship “in the second half of October.”

The touch screen will replace the function keys on current MacBooks. Instead of keys marked F1-F12, there will be a screen that employs Organic Light-Emitting Diodes that will offer functions that apply directly to the user’s task or application. For example, the display would show media controls while iTunes is in use or editing commands while iMovie is open. Apple could add new buttons through software updates.

The upgraded laptop will feature a USB-C port for charging, rather than the MagSafe connection on current MacBooks, per the report. The trackpad will be slightly wider and Apple will also bring the Touch ID fingerprint technology from the iPhone to the Pro line. TouchID will allow users to unlock the device with their fingerprint and easily use Apple Pay for online purchases. The laptops will encrypt fingerprint data so it can’t be hacked.

The company is in development on macOS 10.12.1, which will support the hardware’s new features. Apple will release the updated MacBook in two sizes, a 13-inch and a pricier 15-inch model. Both are expected to be thinner than current-generation MacBook Pros.

The MacBook Pro upgrade comes as the Cupertino-based company is seeing a sharp decline in iPad sales. Apple’s tablet sales were down in the second quarter, shipping 10 million units this quarter compared to 11 million units at the same time last year. However, sales of Macs, including the Pro line, were up 6 percent to $25.5 billion in the last fiscal year.

During the last quarter, Apple said net income was $7.8 billion in the quarter that ended June 25, down from $10.68 billion one year ago. Revenue also declined 14 percent to $42.36 billion compared with $49.6 billion last year.

Amazon is eating away at Google’s core business

jeff bezos amazon ceo happy laughing smilingJeff Bezos, the founder and CEO of Amazon.Alex Wong/Getty Images

Current Prices

For more and more people, Amazon is the first port of call when it comes to researching potential purchases — and that’s bad news for Google.

Over half of Americans now go to Amazon to carry out their first search for products, turning away from search engines and other online retailers, according to a new study from the marketing company BloomReach. (The research was previously reported on by Bloomberg.)

Fifty-five percent of those surveyed made their first search on Amazon, up from 44% a year ago. At the same time, just 27% of people began at search engines, down from 34%. Retailers also saw a decline, dropping to 16% from 21%.

(The study took place on Labor Day, May 1, and surveyed 2,000 US consumers. There’s no word on data from other countries, but it seems reasonable to assume that the data might be similar in Western markets where Amazon has a similar presence as in the US.)

It’s a yet another sign of how fully Amazon is dominating online shopping — but it’s also particularly bad news for Google.

Google’s original, core business is a search engine. But more and more consumers are now opting to bypass it in favor of heading straight to the ultimate destination.

A customer pushes her shopping cart through the aisles at a Walmart store in the Porter Ranch section of Los Angeles November 26, 2013. REUTERS/Kevork Djansezian Shopping IRL is so passé.Thomson Reuters

The ads Google can serve next to product or shopping searches are especially lucrative (as they can be highly targeted at users clearly intending to spend money), making this trend more damaging than if Google’s search market were eroding in a different sector (educational searches, for example).

A Google representative declined to comment.

There’s still no guarantee, however, that people who visit Amazon first will definitely buy from there — something BloomReach acknowledges. “Just because consumers start on Amazon, that doesn’t mean they ultimately buy from Amazon,” marketing head Jason Seeba said in a statement. “Instead, they’re often comparing and researching products on search engines and other retailers.”

Plus, it’s not as if Google is dependent solely on search: Its revenue now comes from everything from its DoubleClick ad network to its Google Play purchases.

But even so, Amazon has become the unrivalled go-to destination to start Americans’ search for products — and that has to worry the world’s largest search engine.

image

image

image-1 image-2 image-3 image-4 image

Twitter shares surge on report of possible takeover

 

Shares of social media platform Twitter surged more than 20 percent in morning trading Friday on reports that the company will soon receive a formal bid from a high-profile suitor, according to CNBC.

Possible contenders for the acquisition of San Francisco-based Twitter include Salesforce, Google and other high-profile tech names interested in the data it’s collected.

“Twitter’s board of directors is said to be largely desirous of a deal, according to people close to the situation, but no sale is imminent,” CNBC reported Friday.

“One source close to the conversations said that they are picking up momentum and could result in a deal before year-end.”

Requests for comment by the Business Times from Twitter, Google and Salesforce were not returned Friday.

At the end of July, slowing advertiser demand and a weakened revenue forecast walloped Twitter, pushing its share price down as the company scrambled to reassure investors it was on the right path.

Twitter recently ratcheted down its revenue guidance to a range of $590 million to $610 million in the third quarter, a significant drop from the $681.4 million analysts had expected. More importantly, Twitter said it had “less overall advertiser demand than expected,” as brands decided not to invest in the platform, adding to ongoing concern about how it will continue to make money.

On an earnings call Tuesday, CEO Jack Dorsey, CFO Anthony Noto and COO Anthony Bain said they are confident Twitter can continue to attract new users. Twitter is hoping new live video deals will lure in more users, and with them, advertising dollars.

Video streaming is part of a suite of new features rolled out by the company in recent months, including tools to allow users to create polls, make political donations and post photos or videos without affecting the 140-character count of tweets.

Twitter also has introduced the ability to buy products and services via a one-step button.