Tesla Tops Forbes' List of Most Innovative Companies in the World

Innovation  

Tesla Motors has recognized by Forbes, which has put Tesla on the top of its list of most innovative companies in the world.

Ever since it was founded back in 2003, Tesla Motors has had a reputation as an innovative company that is poised to disrupt the century-old auto business, thanks to their advanced electric drive technology that has proven to be superior to the technology developed by other automakers that have been involved in the car building game for much longer. Now, the electric-car maker's commitment to innovation has been recognized by Forbes, which has put Tesla on the top of its list of most innovative companies in the world.

Forbes has released its annual list of the World's Most Innovative Companies, with Tesla appearing in it for the first time this year and earning the top spot in its first appearance. The list features 100 companies, with most of the top ten companies coming from the pharmaceutical industry, and Tesla being the only automotive company on the entire list. The main reasons why Forbes ranked Tesla Motors as the world's most innovative company include its ability to disrupt an entire industry and its unusual business model that set it apart from other automakers.

Tesla Founder Elon Musk

Tesla's innovation was measured using a methodology that revolves around innovation premium, which is defined as the difference between a company's enterprise value and short-term projected revenues. Based on analysts' predictions, Forbes' researchers determine a company's projected revenues and measure how innovative it is. This means that the companies on this list are ranked by their future growth potential, which is driven by innovation.

“Most innovation rankings are popularity contests based on past performance or editorial whims. We set out to create something very different with the World’s Most Innovative Companies list, using the wisdom of the crowd. Our method relies on investors’ ability to identify firms they expect to be innovative now and in the future,” said researchers Jeff Dyer and Hal Gregersen with Forbes.

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The immensely popular Model S has certainly helped boost Tesla's reputation as an innovative company even further. The luxury sedan is considered the best all-electric car on the market, and Forbes has deemed it as one of the main factors helping the company disrupt the auto industry. The magazine notes that the Model S can be called the world's best car thanks to its long driving range that is not matched by any other electric car currently available for purchase, and its excellent safety ratings. What's more, it can be ordered online, with the automaker delivering it to the customer's home, and its performances can be enhanced via wireless software updates, which no other car is capable of. The fact that Tesla continuously improves the performances of the Model S and makes changes to the car's interior, as well, makes the company that much more innovative.

Finally, Forbes believes that Tesla is perfectly positioned to dominate the future car market that is expected to center entirely on electric vehicles, thanks to the fact that the company already has a great competitive advantage provided by its superior electric drive technology and revolutionary business model.

By Jordan Perch

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Author Bio - Jordan Perch is an automotive fanatic and “safe driving” specialist. He is a writer for DMV.com, which is a collaborative community designed to help ease the stress and annoyance of “dealing with the DMV.”