During Tesla’s Q4 earnings conference call, Elon Musk said he expected that Panasonic would “continue to partner with us in the gigafactory.” He was wrong… and perhaps fortunate at the same time.
Opposites attract, but in life and in business, they don’t necessarily make the best long-term partnerships. To quote from Lucille Ball’s autobiography,
“We had a great attraction going for each other in the beginning but we didn’t approve of each other. He disapproved of my moderation and my conservatism. I disapproved of the way he worked too hard, played too hard, and was never moderate in anything.”
Desi and Lucy divorced in 1960. Both remarried happily, and remained friends.
Tesla and Panasonic are the Desi and Lucy of the EV battery business. Their respective corporate cultures are diametrically opposed, which is why Panasonic’s President appears to have left Tesla standing at the altar.
He may send a token gift of apology (perhaps $100 million in a very nice lacquer box), as Japanese are keenly respectful, avoid conflict and have a thousand ways of saying ‘No” without being direct. But the marriage is definitely off; and that’s a good thing.
A Culture of Conservatism
Granted, the world is getting more homogenous and contemporary by the day, but certain stereotypes remain intact, especially in the more insular cultures. Japan is still largely a culture of consensus, conservatism and conformity.
The Japanese tend to be hesitant to get involved with things that are new and different. They don’t risk going out on a limb for fear of being ostracized, a fate worse than death in a group-minded culture. In being part of a group, success is shared and guilt is diffused. In Japan, mavericks are not heroes; they are outcasts.
Even CEOs in Japan often lack real power. The top-down leadership model is not all that common; most important corporate decisions are made by consensus. No wonder, when faced with the radical giga-plan, Panasonic President Kazuhiro Tsuga focused on the risk, not the reward.
A Culture of Risk
Tesla Motors, however, is the ultimate expression of a high-profile, risk-seeking entrepreneur who has a passion for innovation and goes all-in on just about everything he does. It’s in his genes. Musk’s father was the first to fly solo from South Africa to Australia.
Far from being a figurehead CEO, Musk is an impassioned, hands-on problem solver…at three companies. He is not brash or rude, but he doesn’t hold back his sardonic wit when, for example, car dealers claim special rights based on a mission of consumer protection.
Untying the Knot
Within a few years, Tesla and Panasonic will compete as dominant battery suppliers for the electric vehicle revolution, but they will operate from two completely different worlds. They won’t be intimate partners, but I fully expect that they will be friends.
= = =
Learn more about Tesla news and TSLA stock analysis at www.teslachronicles.com
RELATED READING
The Car Dealer Model Is Disappearing: Hello Tesla by Kenneth Reid, PhD
