Analysts are warning these companies that their business is going to shrink. It will be interesting to see if they adapt to the change, or cling desperately to an outdated business model like the entertainment industry did. "One opportunity for the industry could be selling more coverage to carmakers and other companies developing the automated features for cars. ... When the technology fails, manufacturers could get stuck with big liabilities that they will want to cover by buying more insurance. There's also a potential for cars to get hacked as they become more networked."
The Tesla Model S has sold so well because, compared to old-fashioned gasoline cars it is more fun to drive, quieter, always "full" every morning, more roomy, and it continuously gets better with automatic updates and software improvements. According to Ralston the tipping point will come when gas stations, not a massively profitable business, start to go out of business as many more electric cars are sold, making gasoline powered vehicles even more inconvenient. When that happens even more gasoline car owners will be convinced to switch. Rapidly a tipping point will be reached, at which point finding a convenient gas station will be nearly impossible and owning a gasoline powered car will positively suck. "Elon Musk has ushered in the age of the electric car, and whether or not it, too, was inevitable, it has certainly begun," concludes Ralston. "The future of automotive transportation is an electric one and you can expect that future to be here soon."