Mercedes-Benz vs. Tesla competitive strategy failure

Steve: Just to echo Professor Eagar's point. In the mid-2000s working at Mercedes in Germany, they were terrified of Lexus. They used to sit around and talk about how scared they were of Lexus eating their lunch. They kept focusing on how they were going to beat Lexus. At the same time Elon Musk was going a totally different direction in electric cars. Guess who ended up eating Mercedes' lunch? Tesla. Talk about the success of going a different direction.