Tesla, Inc., formerly Tesla Motors was founded in 2003 by american entrepreneurs Martin Eberhard and Marc Tarpenning who went on to become CEO and CFO of Tesla. Funding for the company was obtained from different sources including Elon Musk who contributed more than 30 million dollars and served as the Chairman of the company from 2014. Following his resignation in 2007, Eberhard decided to leave Tesla, though he remained to be a shareholder. Tarpenning, also left the company in 2008 after which Elon Musk took as CEO of Tesla, Inc. In 2010 Tesla's initial public offering raised $226 million.
Tesla released their first car in 2008, the completely electric Roadster. Roadster gained huge responses from critics for it's long range and high performance in-spite being a completely electric car. It also hit the news for being environmental friendly by not producing harmful chemicals like combustion engines do. Despite a federal tax credit of $7500, Tesla Roadster's cost of $109,000 made it a luxury item. Not to forget that you need not pay for gas anymore! Is there a better marketing statement than this? In 2012, Tesla decided to stop the production of Roadster to concentrate the manufacturing of Model S, the world's first ever all electric sedan from the ground up. Model S combined performance, safety and efficiency as it reset the world's expectations of a electric car with longest range in any electric vehicle, over the air software updates that make it better overtime and incredible performance. It also came with different battery options, high performance, innovative interior design and the Tesla autopilot, the semi autonomous driving was made available in 2014 for all models later. In 2015, Tesla extended it's product line by the introduction of Model X which obtained the historic 5 star safety rating from National Highway Traffic Safety Administration. In 2017, as per Elon Musk's secret plan Tesla produced Model 3, a low priced, high volume electric vehicle.
Tesla's strong brand gives it unusual expansion potential. In 2018, Tesla was listed among the Top 100 most valued global brands by WPP Brandz which was a 60% jump in brand value when compared to 2017. It was the only auto brand to be listed in the top ten risers in terms of Brand Value. Tesla, is more than auto company. It has evolved to become a tech and energy company as well although it's most known and most valued for it's cars.
Tesla is also the 7th most valued car brand in the world in spite of it's limited product line and lesser units sold. Tesla's growth is rapid both in terms of product line up and brand value.
Tesla's major marketing point is that it combines tech that helps the environment with high performance, luxury and affordable for a average consumer. May it be the Tesla auto pilot or the exceptional minimalist design approach, Tesla seems to have seized the attention.
It is also worth taking into consideration that Tesla does not invest in any conventional advertising. This is incredible considering the $11 billion dollar collectively spent by other car companies in marketing every year. Tesla separates itself from other companies by the way they sell their vehicles. Tesla does not offer cars for sale via dealerships, instead they set up showrooms in shopping malls where the innovation of each car is on full display.
Tesla's brand image is directly linked to Elon Musk's personality, the real life Tony Stark has been a significant asset to the company. Like Steve jobs was for Apple, Elon Musk's public image plays as a huge catalyst in company's success. Elon Musk himself has a sense of humor which he hadn't mind expressing in public forums. This is one way how Elon Musk adds brand personality to Tesla. Having sense of humor in marketing helps Tesla in a great way by making it's customers realize that they are humans as well.
Elon Musk's other ventures such as SpaceX and The boring company also add flavor to what people think Tesla does, pushing forward the possibility of what electric vehicles and transportation look like in future. This futuristic and innovative approach is both inspiring and engaging for the public. Tesla with newer innovations like the Tesla Semi (Truck) and revamped Tesla Roadster 2.0 is proving to dominate early 2020 and beyond.
Tesla's huge contribution towards brand building comes from their owners who share their experience with people they meet and in public forums. As they say, the best form of advertising is positive, organic word of mouth advertising. Anybody who owns a Tesla will have a reason beyond the desire to drive somewhere. Tesla produces products for purpose more than just for transportation. Tesla's mission statement, "To accelerate world's transition to sustainable energy" shows what purpose it serves and how public can become a part of the process.
Sources and references:
Comments