Global Marketing

Tesla’s “$0 Marketing Budget.”

Tesla, Inc., formerly Tesla Motors (2003–17), is an American electric vehicle manufacturer. It was named after Serbian American inventor Nikola Tesla and was created in 2003 by American entrepreneurs Martin Eberhard and Marc Tarpenning. Tesla Motors was established to create an electric sports car. Tesla's chief executive officer (CEO) was Eberhard, and its chief financial officer was Tarpenning (CFO). The company received funding from several sources, including PayPal co-founder Elon Musk, who invested more than $30 million in the new venture and served as chairman of the board of directors starting in 2004.

Starting from the left featuring Tesla Model S, X, 3, and Y

Tesla already released four cars in the market for sale, namely Model S, Model X, Model 3, and Model Y. The company is already taking preorders for their first utility/performance truck known as Cyber Truck and the fastest sportscar named Roadster 2.0. Other products such as Semi-Truck are in line to hit the road in the coming future. Tesla's supercharging network, power wall, solar roof, and panels provide environmentally friendly electricity in terms of services.

All data as of January 15, 2021

Tesla, considered the most valuable carmaker in the world, has risen to the top in just 17 years, dethroning Toyota, the long-time leader. Although its rivals spend astronomical amounts on ads, Tesla sticks to a marketing budget of zero dollars. Mr. Musk has repeatedly voiced his opposition to mainstream ads, claiming that it is a waste of money. With the right marketing plan, he has created a brand Tesla that can stand on its own, leaving the marketing reins to his customers. Elon Musk currently has one of the biggest online presences among his rivals, with 54.2 million Twitter followers, making him one of the first CEO influencers of our time. His frequent face-to-face encounters with customers (rather than a marketing team managing the account) foster an emotional bond. Though his social media activity has been contentious, it has ultimately acted as a powerful tool for promoting Tesla. CEOs that are social media engaged, socially conscious, and charismatic can greatly impact their companies' brand image.

Tesla's Referral program, one of the highly successful and revolutionary marketing strategy

Unlike conventional car sales, customers who want to purchase a Tesla don't have to go through a lengthy in-person sales process. Instead, ordering and configuring a Tesla needs just a few clicks of the mouse. Make engaging with your brand as smooth as possible to simplify your consumers' experience. Making your website more effective and user-friendly is one measure you can take.
Tesla employs one of the most successful marketing strategies available: word-of-mouth. The brand's referral program honors those who tell others about their positive experiences. Consumers are more likely to trust recommendations from people they know and trust, such as friends, coworkers, and family members than recommendations from brands.
Any brand's success can be determined by how well it connects with the group. Tesla has a strong user-centric approach, with customer forums and an owner club. This helps the business to foster brand loyalty and enthusiasm. This strategy also creates a solid base of content that builds on itself and is accessible to potential customers.

One reply on “Tesla’s “$0 Marketing Budget.””

Word of mouth is critical for Tesla’s popularity. Leveraging social media platforms to develop “hype” around Tesla vehicles allows them to maintain a low advertising budget. Freed up capital from not having to invest heavily in marketing can be used for R&D.

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