Here it is, the long-awaited post about Tesla. We have been posting about major companies that are part of our everyday life to a certain extend for our dsmmcm1819 unit. And although you might not drive a Tesla (yet), it is definitely worth mentioning why this company is amazing.
I have been waiting to write a post about this company since I mentioned Elon Musk as my personal inspiration a few months ago. Tesla is an American car manufacturer, currently producing models S, X and 3 plus solar panels and batteries. Compared to other car manufacturers, the company is relatively young, being founded in 2003. Elon Musk serves as CEO and product architect (CPO).
Tesla’s mission statement is “to create the most compelling car company of the 21st century by driving the world’s transition to electric vehicles”. So, how are they going to achieve that? Using innovation, the latest technology and common sense, because, let’s be honest, nobody needs to drive a fossil-fuelled car in the 21st century anymore. The technology for great EVs is out there and getting better by the minute. But what is it, that makes Tesla stand out? Here are the facts.
Tesla has a marketing budget of $0. Correct, they do not spend a single penny on paid advertising. With a total in advertising expenses of $6 per car, the American car manufacturer is the unbeaten champion when in comes to budgeting. Just for your information, number two is Toyota, with a total of $248 per vehicle. I am just going to leave that here…
Instead, Tesla uses a highly effective PR strategy with a focus on social media and word of mouth; and it is working out very well. The unique selling point of the Palo Alto company lies in the product itself: fast, innovative and attractive cars that might not save the environment, but harm it far less than dirty cars using dead dinosaurs as fuel.
Society is changing towards a more sustainable way of living and in here lies the big chance of Tesla of finally being profitable for good. And with the introduction of the Model 3, a more price-competitive car has been introduced that is already sweeping US and European customers of their feet.
But we all know, for the ultimate success just add a bit of Elon Musk’s sharp humour and wit and voilà, you created a masterpiece of a strategy. And truth be told, I am excited to see what is yet to come for both Tesla and Mr. Musk because I think, their success has just begun.
Featured Image taken from Outsider Club