I wanted to share some thoughts with you regarding the recent news on Tesla (TSLA) and its decision to open its intellectual property assets to the world. I am excited and highly encouraged by this move for a couple reasons. First, it will likely have a dramatic effect on the overall production of electric cars and the build out of infrastructure to accommodate the new EV economy. More manufacturers entering the space will translate to lower prices for consumers bringing the average selling price per vehicle to a level that is affordable for the masses. More importantly, I am highly encouraged by Tesla’s decision to make their intellectual property “free”; a move that goes against typical corporate behavior to license or litigate. This says something very bold about Tesla’s CEO, Elon Musk, and his vision. It’s probably true that Tesla could have engaged with auto manufacturers and constructed license agreements around their intellectual property, but for the licensee this would have added an extra layer of cost complexity to enter the electric vehicle space in the first place. Instead, Musk is inviting the industry to embrace a higher objective and providing some means for them to do so.

Now, we are all well aware of the timeline regarding climate change, and I believe Musk shares in our belief that this is no time to be piddling over licensing payments when the viability of our planet is at stake. The bigger picture is to get as many of these vehicles on the road as soon as possible and make an industry wide effort to transition the world from fossil fuel consumption and reduce carbon emissions. The move from combustion engines to electric is likely to be one of the greatest industrial transitions we will witness this century. Musk sets a high standard for CEOs everywhere and should be applauded for his efforts to catalyze some much needed change in this industry.

We do not currently own shares in Tesla. However, we are looking for a price to purchase shares.

Best wishes,

Andrew Friedman, CFP®
AJF Financial Services, Inc.
708 Third Ave., Suite 2011
New York, NY 10017

212-686-4590 (fax)

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