Skip to main content

Tesla handing over the keys to its technology

By WTOP Staff

MICHAEL LIEDTKE
AP Business Writers

SAN FRANCISCO (AP) — Electric car maker Tesla Motors is handing over the keys to its technology in an unusual effort to encourage other automakers to expand beyond gasoline-burning vehicles.

Tesla CEO Elon Musk promised Thursday to give away the company’s entire patent portfolio to all comers, as long as they promised not to engage courtroom battles over intellectual property

“If we clear a path to the creation of compelling electric vehicles, but then lay intellectual property landmines behind us to inhibit others, we are acting in a manner contrary to that goal,” Musk wrote in a blog on the company’s Web site.

The decision opens the door to more collaboration with Tesla, which is already making electric systems for Daimler and Toyota. Other automakers using Tesla’s technology could potentially share the cost of Tesla’s charging stations, for example. And more charging stations could entice skeptical buyers to try electric cars.

Seven years after Tesla introduced the Roadster electric sports car — which it no longer makes — electric cars still make up less than 1 percent of U.S. sales. Drivers remain concerned about their range and the lack of places to get a charge. Stable gasoline prices have also hurt sales.

Musk wants Tesla to help change that. The Palo Alto, California-based company currently makes one vehicle — the $70,000 Model S sedan — and is developing two others. Its Model X crossover is due out next year, and Tesla wants to start making a cheaper model by 2017. It’s currently scouting locations for a $5 billion battery factory to increase supplies.

But Musk said Tesla can’t make a dent in the market by itself, and thinks the patents could be a “modest” help to other companies developing electric cars. He says Tesla has gotten few requests for technology from rivals, but he thinks that’s partly because patents were blocking access.

“If we can do things that don’t hurt us and help the U.S. industry, than we should do that,” he said.

Musk said Tesla discussed a potential Supercharger partnership with BMW this week. Currently, Tesla has about 100 Supercharger stations scattered across North America and Europe that give Model S drivers a free power source when traveling long distances, and it plans to open more in China and Japan this year. The technology is designed to replenish about half of the battery power within 20 minutes.

BMW spokesman Kenn Sparks confirmed the meeting.

Nissan, which makes the electric Leaf, had no comment on Tesla’s action. The Leaf only goes 84 miles on a battery charge, compared with up to 265 miles with a Model S. But the Model S has a much larger battery and costs twice as much as a Leaf.

Prashand Kumta, a professor at the University of Pittsburgh’s school of engineering, said Tesla’s lithium-ion battery technology isn’t unique. But how the company packages that technology and designs its cars could be useful to other companies.

At the start of this year, Tesla had been issued 203 patents covering its batteries and other key features that distinguish its electric cars from gasoline-powered vehicles. Another 280 patent applications are still pending in the U.S. and other countries, according to Tesla’s regulatory filings.

The earliest any of Tesla’s current patents expires is in 2026, so the company is relinquishing a potentially valuable long-term advantage by giving away its intellectual property to its rivals.

But other companies have shown that technology giveaways can pay off. Even though it spent millions designing Android, Google made the software available to all comers at no charge. Google was more interested in expanding the market for mobile devices and ensuring its search engine and other digital services supported by advertising would be prominently featured on them.

The strategy has worked out well for Google so far. Android is now on more than 1 billion devices, surpassing Apple’s iOS as the world’s most widely used mobile operating system.

The open-source movement has long appealed to the egalitarian mindset of most technologists, so the patent decision could help recruit talent. Musk named his company for Nikola Tesla, a famous inventor who became so exasperated with the legal system that he finally stopped patenting his ideas.

“Technology leadership is determined by where the best engineers want to work,” Musk said. “Putting in long hours for a corporation is hard. Putting in long hours for a cause is easy.”

Analysts said the announcement has little downside for Tesla, and could solidify its leadership in the market.

“By opening its patents, Tesla rightly realizes it’s better to be the best product in a large industry than the only product in a niche one,” observed Silicon Valley entrepreneur Aaron Levie, the CEO of file-storing company Box Inc., in a Thursday post on his Twitter account.

___

Durbin reported from Detroit.

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
Read Next Story

Related News

Frustration grows in Venezuela as earthquake death toll reaches 1,430

Israel and Lebanon sign framework agreement with US in ‘first step’ toward peace, Rubio says

Trump-endorsed populist poised to become Colombia’s next president as rival challenges vote