Podcasts Technology Lead Like Elon Moats Are Lame: Why You Can't Build a Moat Around a Moving Target

Moats Are Lame: Why You Can't Build a Moat Around a Moving Target

Published: Dec. 8, 2020, 1:41 a.m.

In a 2018 earnings call, Elon Musk was asked if Tesla’s Supercharger network could be used as a strategic moat to protect it from competitors. Elon’s answer?  “I think moats are lame ...if your only defense against invading armies is a moat, you will not last long.”  

This flies in the face of conventional business wisdom. First you build a castle. Then you build a moat to defend it. You literally create a barrier to entry to prevent competitors from attempting to occupy the ground you have conquered.  

Elon on the other hand is constantly moving forward. There’s no point building and seeking to defend it from challengers when you are constantly seeking to build something better.  You can’t build a moat around a moving target. In Elon’s world Elon’s only competition is himself.   

Music: BushWeek by Nihilore
Image: SpaceX