For a while now I’ve wanted to purchase an electric car but they have always been too expensive. With the new Tesla 3 coming out, Alexa, do you think I should buy it or stick to a regular gas guzzling car?
Dear Driving Danielle,
Honey, I’ve been checking out pictures and the new model looks pretty sweet! But let’s take a look though at the big issue here: creative destruction. As described by economist Joseph Schumpeter, it is the process by which old technology, processes and ideas are replaced by innovations. It is how our society finds a more efficient, less expensive and smarter way of life.
Keeping this automobile theme, we can think about Uber. Many economists describe Uber to be an example of creative destruction because the company’s growth has negatively affected the taxi industry. However, I’m sure you know firsthand how helpful it can be to have a taxi on demand wherever you are. So while Uber is leading creative destruction against the traditional taxi it is also advancing the industry as we know it.
By buying the Tesla 3 you are actively engaging in creative destruction. Your choice to pick the new and improved electric car over the standard vehicle could even destroy entire companies. But my friend, you are also participating in a beautiful thing, Although hurting the market in one way you are furthering the prosperity of an innovation that has recently hit the shops. You have the opportunity to be a part of something larger than yourself by making what seems to be a simple decision.
So go out and test drive both cars: the $35,000 dollar Tesla and a gas fueled car around the same price. See which one drives better, is the most comfortable, and most importantly to me, is the most attractive. Then decide what role you want to play in creative destruction.
All the best on your driving adventures,