Business case

Producing transportation equipment for the movement of goods and people by air, rail, sea, and land, including airplanes, spacecraft and military equipment, ships, boats, rail locomotives and rolling stock, motor vehicles, trailers and semi-trailers, and related equipment, as well as repair services for such equipment

Transportation Equipment

Engaging in discussions with industry stakeholders to share circular economy best practices and push the industry towards greater circularity

Guidance, dialogue with industry stakeholders

Working together with customers to jointly create products fit for them

Co-creation

Other

Industries

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The principles of a circular economy concern designing out waste, regenerating ecosystems and keeping items in use. Decoupling the economy from material flows—improving the rate of resource productivity faster than the economic growth rate—is also a consistent guide. By evolving with the growing number of applications of circular economy principles, and consolidating these strategies across thematic areas, Circle Economy’s Key Elements Framework (KE) renders the elements of the circular economy salient and serves as a basis to derive contextual strategies and interventions. 


The Framework consists of:
- Core Elements: Activities directly handling product or material flows; and uniquely,
- Enabling Elements: those that remove obstacles for core actors.


Key elements of the circular economy

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Circle Economy's framework of strategies and activities that define the circular economy

Urban Opportunities

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Based on the work of [Bocken et al. (2016)](https://www.researchgate.net/publication/309699661_Product_design_and_business_model_strategies_for_a_circular_economy), the Four Flows Framework serves as a simple framework for managing resource flows in a circular economy by using less (Narrow), using for longer (Slow), using again (Cycle), and using clean, regenerative materials and energy (Regenerate).

These different principles of circular economy can be applied to our socioeconomic metabolism: we can design stocks like buildings, infrastructure, machinery, and vehicles to be rich resource mines for the future, and design manufactured goods and consumables to be cycled and made regenerative. Furthermore, the focus must also centre on getting more value out of fewer materials. Achieving the aims of a circular economy—minimising material use, regenerating the Earth, and preventing material losses—can be done through these four key strategies mentioned above.

Source: Circle Economy. (2023). *[The circularity gap report 2023](https://www.circularity-gap.world/2023)* (p.22). Amsterdam: Circle Economy. 

Four Flows Framework

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Yesterday, there was a wall of Tesla patents in the lobby of our Palo Alto headquarters. That is no longer the case. They have been removed, in the spirit of the open source movement, for the advancement of electric vehicle technology.
Tesla Motors was created to accelerate the advent of sustainable transport. 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. Tesla will not initiate patent lawsuits against anyone who, in good faith, wants to use our technology.
When I started out with my first company, Zip2, I thought patents were a good thing and worked hard to obtain them. And maybe they were good long ago, but too often these days they serve merely to stifle progress, entrench the positions of giant corporations and enrich those in the legal profession, rather than the actual inventors. After Zip2, when I realized that receiving a patent really just meant that you bought a lottery ticket to a lawsuit, I avoided them whenever possible.
At Tesla, however, we felt compelled to create patents out of concern that the big car companies would copy our technology and then use their massive manufacturing, sales and marketing power to overwhelm Tesla. We couldn’t have been more wrong. The unfortunate reality is the opposite: electric car programs (or programs for any vehicle that doesn’t burn hydrocarbons) at the major manufacturers are small to non-existent, constituting an average of far less than 1% of their total vehicle sales.
At best, the large automakers are producing electric cars with limited range in limited volume. Some produce no zero emission cars at all.
Given that annual new vehicle production is approaching 100 million per year and the global fleet is approximately 2 billion cars, it is impossible for Tesla to build electric cars fast enough to address the carbon crisis. By the same token, it means the market is enormous. Our true competition is not the small trickle of non-Tesla electric cars being produced, but rather the enormous flood of gasoline cars pouring out of the world’s factories every day.
We believe that Tesla, other companies making electric cars, and the world would all benefit from a common, rapidly-evolving technology platform. 
Technology leadership is not defined by patents, which history has repeatedly shown to be small protection indeed against a determined competitor, but rather by the ability of a company to attract and motivate the world’s most talented engineers. We believe that applying the open source philosophy to our patents will strengthen rather than diminish Tesla’s position in this regard.


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Tesla 

<p>The highest hurdle that innovative companies often face is not the theft of their ideas, but rather the development of new markets. Tesla opened all of its electric car patents to outside use. By utilizing its ideas, Tesla’s competitors would improve the product and marketing so that all electric car manufacturers could sell more vehicles and establish new markets. Tesla also stands to benefit if its roadside charging stations become the industry standard. Currently, Tesla has a network of 97 Superchargers across United States, so a lack of stations is an obstacle to long-distance travel in an electric car. But with other manufacturers using Tesla technology and making cars that could plug in at Tesla Superstations, Musk’s company stands to make a fortune simply from giving away its blueprints to “competitors.”</p>

Open patents to create dialogue with industry

Tesla Motors launched a pre-owned vehicle program at the end of April 2016 --
a new scheme that offers older versions of its Model S sedan for lower prices
than new models. The used cars come with Tesla maintenance and reliability
checks, and like other high-end car makers, a 4-year or 50,000-mile warranty
on pre-owned vehicles. The used cars would be stored at a Tesla location,
allowing customers to collect their car directly, or have it delivered to
their home. The new program also gives Tesla a nice new revenue stream: the
sale of used cars traditionally yields higher profits than the sale of brand
new vehicles.

  

Read more at:

<http://www.theverge.com/2015/5/4/8548463/tesla-used-car-pre-owned-model-s-
program>

