New entrants into markets with innovative new technologies often have products that are worse off in many areas than existing companies (ie. existing gas car co

New entrants into markets with innovative new technologies often have products that are worse off in many areas than existing companies (ie. existing gas car companies), however are vastly superior in some specific new way(s). That is true for this product. The expectation I bet is that the technology will continue to evolve, and will over time improve to the point of overtaking the incumbents on more and more key metrics until gas cars just won't be able to compete any more. Tesla is betting on the fact that their value proposition is good enough today (or within 3-5 years) to allow them to gain enough market share in whatever vertical they're starting with (e.g. luxury every-day sport vehicles) to really cause a major disruption -- and expand from there. Key reference from: The Innovators Dilemma