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The Company Tesla was founded in 2003 by Silicon Valley inventors with an perception of bringing in pure electrical vehicles, based on original 1888 Nikola Tesla electrical motor. Tesla has established themselves as one of the leaders in the Electronic Vehicle market and a leader in innovations.

Maneuvering in a very competitive market with high barriers of entry that requires strong financial and infrastructure support (The Economist Intelligence Unit, 2012), just after 16 years, Tesla managed to re-define the automaker industry with successful launch of its main stream model 3, achieving the biggest marketing and financial success in the history of any industry, recording $ 7.

5 Billion U.S. dollars worth of

pre-orders in just 24 hours (The Economist, 2016 and Randall, 2016). Tesla is the anomaly that survived the market high entry barriers compared to its peers/startups with successful strategies, business model and marketing approach lead by Tesla’s CEO (Muller, 2013).

Financial Performance

Situational AnalysisTesla is the maker of high performance and fully electric vehicles and energy storage systems.

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Apart from that the brand also installs, operates and maintains solar and energy storage products. It is known for its focus on sustainability.

The brand has also established a global network of vehicle stores and service centers.   In order to increase the pace of adoption of electric vehicles, it established a network of super charger stations. However, what truly differentiates Tesla from its competitors are its vehicles, engineering expertise and intense focus on transition towards a sustainable transport system.

Sustainability has become very important in the context of business, but apart from that people have also understood the value of sustainability and adopted products and vehicles that have low environmental impact.

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Increased popularity of sustainable vehicles is good for Tesla’s business.

However, there are certain hurdles to the  widespread adoption of these vehicles. One of them is the pricing. Tesla has decided to overcome this hurdle by introducing a new lower priced model. Its product mix is still small and limited and it has complemented its vehicles with other energy products.

Mission Statement:  Tesla’s mission is to accelerate the world’s transition to sustainable energy.

“our goal is to create awareness of the potential of electric vehicles and particularly around those created by tesla motors. We want to bring powerful electric cars from the narrow luxury market to mainstream America”.

Elon Musk,2017

The mission statement of Tesla explains the central focus of the company is to prove that electric cars could be better than the gasoline powered ones. The main focus of the company is to help the world reduce its dependence on carbon fuels and transition towards a cleaner world with the help of sustainable energy. Tesla makes EVs and energy storage systems and also installs and maintains solar and energy storage products.

The world is already moving towards electric friendly vehicles and environmental solutions and Tesla is on a mission to accelerate the process.  This mission statement appears like a socially responsible mission statement because its focus is on using innovation for the betterment of the world.

Vision Statement:Elon Musk’s (Co-Founder, CEO and architect at Tesla), vision for Tesla is to

Create the most compelling car company of the 21st century by driving the world’s transition to electric vehicles.

This vision focuses on two things. One is brand image and the other is the product. By the most compelling car company it means a company with a compelling vision of sustainable future – a company with a strong brand image and that creates real value. Tesla’s vision is to be the driver behind the world’s transition to electric vehicles.

Core Value: A Clean Start: A Silicon Valley approach means we move fast and constantly innovate.

Committed To Electric: Tesla makes the best electric cars and electric power trains in the world.

Tesla’s technology offers the most efficient path to a sustainable energy future; No Hybrids, No Hydrogen, No Hype.

Built Around The Driver: The driver, the car, and the environment connect in ways they’ve never connected before.

Sparking The Evolution: Tesla’s goal is to accelerate the world’s transition to electric mobility with a full range of increasingly affordable electric cars.

Success of Tesla Motors”For Marketing strategy to be developed successfully, it is necessary to understand an organization’s strategic context and then to fit the marketing strategy…” (Baines & Fill, 2014). Tesla gained its success of being the zero emission automaker that successfully delivered workable production vehicles that address consumer needs (Mangram, 2012).

Additionally, Tesla has gained market attention in the automaker industry similar to Apple and being ranked #1 world’s most innovative company in 2015 by Forbes (Forbes, 2015), and ranked #3 in 2013 after big players like BMW and Mercedes in selling electrical cars and .

Financially, Tesla created a success with steady increase of revenue since 2012 second quarter when Model S delivery started amd the model 3 with immense success as in the figure shown ,with the most recent sales in the US ,it is quite sure that tesla is the easy winner

Product portfolio

Vehicles:Model S:Model S is a fully electric sedan that also provides compelling range and performance with no tailpipe emissions. Model S is a beautiful model that functionality, convenience and safety along with style and energy efficiency. Overall, Model S means performance, safety and luxury in one.

Model X:Model X is a long range SUV. The vehicle offers functionality, high performance features and can seat up to seven.The brand also offers safety and convenience.

Model 3:This model of electric vehicles is also a combination of functionality, design, style and convenience. Tesla will produce it in larger volumes and price it lower than its existing vehicles.

Energy Storage:Tesla has developed energy storage products for use in homes, commercial facilities and utility sites. Its energy product portfolio has systems with a wide range of applications ranging from those for home use to those that can be sued in large scale grid projects. Tesla also continues to better its software capabilities for controlling energy storage systems.

Solar energy

Major component of its solar energy systems includes solar panels for converting sunlight into electricity, inverters, racking and electrical hardware and monitoring devices.

Technology:Tesla’s battery packs are designed to achieve high energy density at low costs. However, they are also known for safety and durability. Tesla also produces power electronics, dual motor power train, vehicle control and infotainment software as well as autopilot systems.

Pestel analysis

1.Place: Tesla markets and sells its vehicles directly to the consumers through its international network of company owned stores and galleries.  Currently Tesla stores and galleries can be found in key metropolitan cities globally in 27 countries.  The brand is also working on developing its supercharger network throughout North America, Europe, Asia and other key markets to enable convenient long distance travel.

2.Price: In terms of prices, Tesla has utilized the premium pricing strategy. Apart from their functionality the brand is also focused on style and design. Its products are not just sustainable products but they are also great in terms of technology, quality and design.

However, higher prices also mean a premium customer segment. So, Tesla is working on releasing more affordable products and has decided to release Model 3 which is priced lower than the existing two models of vehicles. This will also help it find a larger customer segment and grow its sales.

3.Promotion: There are some important elements in the marketing strategy of Tesla. First of all what works in its favor is its brand image. Apart from it, its website and the strategic locations of its stores also work to promote the brand and its products. However, since it is a brand selling sustainability products, it also gets its due media coverage.

How does Tesla market its brand and products?

Tesla has a great marketing strategy that is based on product quality and efficiency. Its products are great in terms of technology, design and functionality. Every great brand offers great quality and great products. Great marketing always begins from great products. Tesla has made two superb looking and highly efficient vehicles. Both model S and Model X are great looking vehicles.

One is a sedan and the other an SUV and both are great in terms of functionality and efficiency as well as customer convenience.  Primary attraction of these vehicles is there royal and sporty look and the falcon wing doors of Model X are especially a major attraction.

The interiors of these vehicles are designed to make the drivers feel like in a sci-fi movie. These vehicles are designed to maximize safety and for higher customer convenience and satisfaction.  This is the first part of Tesla’s marketing strategy. Its promise of quality, customer satisfaction and driver safety has helped it create high level brand equity.

These things have always kept Tesla in the eye of the media and thus generated high level publicity. Moreover, its Model 3 is a much awaited model with thousands of customers globally awaiting its release eagerly. Elon Musk carries out regular meetings, media events and other forms of public events to publicize new releases by the brand and its future plans.

Events including motor shows and media events are a great method of generating brand awareness and publicity for automobile brands. Elon Musk, Tesla CEO, is also an active social media personality who likes to remain connected with his fans and followers. He likes to respond to their curiosities and promote Tesla products through Twitter and other social media channels.

Apart from that Tesla has made great use of store locations to market its brand and to connect with customers.  Its stores are located strategically in key metropolitan markets where high end customers arrive frequently. It is because it sells mainly high end products.

Same is true about its super charger networks which apart from serving its customers are aimed at promoting the brand. These supercharger stations are located at key points. These supercharger stations are located inside malls, restaurants and resorts. Tesla partners with these facilities and in this way attracts prospective customers who frequently visit these places. This increases brand awareness and is one of the most convenient methods of attracting and retaining customers.

Tesla’s Principal Marketing Goals are to:Generate demand for our vehicles and drive leads to our sales teams. Build long-term brand awareness and manage corporate reputation. Manage our existing customer base to create loyalty and customer referrals. Enable customer input into the product development process

Tesla timeline

Governments are supporting the UN’s green initiative and working to reducecarbon footprint, with setting target to achieve a certain CO2 emissions levels,which creates a need for environmental friendly means of transportation, Figureshows targets set by leading countries to reduce carbon footprint. (McKinsey&Company, Amsterdam Roundtable Foundation, 2014)

Inline with governments’ initiative different laws/legislations were in place tosupport citizens shift to EV, such as tax reduction/exemptions, free parking orother means. This political/legal aspect established a demand for greener cars, forexample, Toyota is planning to double its production of green flagship modelPrius (The Economist Intelligence Unit, 2012).

Economic:Shifting to EV contributes positively to the economic growth, both at consumerand nation levels. Saving fuel costs and ability to spend the saved money indifferent items, leads to better circulation of money in economy at whole (Ozakiand Sevastyanova, 2009 and Gallagher and Muehlegger, 2008).

In Addition,adopting new technologies resolves national economical issues such as,unemployment by increasing demand for different skill sets and opens doors forsupporting businesses to service EV, which contributes to national GDP(McKinsey & Company, Amsterdam Roundtable Foundation, 2014 and Hecker,2005).

Ecological:The political aspect is highly linked with ecological aspect of this analysis, asmentioned in point 3.1.1, there is strong push started in 1986 by WCED and UNto reduce carbon footprint and preserve the environment WCED (1987, cited inH?yer, 2007).

In support of environment preservation, California State placedzero emission regulation in 1990s, which started the race again for research anddevelopment of EV and home of Tesla Motors (H?yer, 2007)Social Culture:Consumers’ buying behavior are strongly linked with economical benefits of longterm saving, and contribution of preserving the environment (The EconomistIntelligence Unit, 2004), Figure 3, shows top motivation for customers to purchaseEV (Ozaki and Sevastyanova, 2009)

Technological:The EV history started with advances in battery technologies, and passing the 60mile range limitation (Hoyer, 2007), Governments are supporting EV automakerby investing in new technologies that motivate the consumers to buy alternativevehicles than ICE, such as the smart roads in UK that aims to recharge the vehicleswhile it moves. (Highways England Company Knowledge Compendium, 2015)

Conclusion and Recommendations

Focus only on premium sector so as not to worsen its image and keep its marginsDevelop its new city-car for mass market with a look funny to compete with such models as the BMW Mini or the Fiat 500Develop its production capacities to support mass production and to reduce production timeSet industry standards and encourage the use of their technology so that most companies will depend on it.

Continue to invest in R&D to keep its competitive advantagepromote a unique charging system to be endorsed by the industryContinue to deploy superchargers in association with others carmakerslaunch an international advertising campaign to promote their brand and their productsBe aware about incidents, negative experiences and dangerous damages


  • Economist Intelligence Unit (2012), Agent of Change: The future of technology disruption in business report, The Economist, The Economist Intelligence Unit N.A., Incorporated.
  • Forbes (2015), The World’s Most Innovative Companies, Access 6th of Mar, 2016
  • Highways England Company Knowledge Compendium (2015), Preparing the Strategic Road Network for electric vehicles highways. gov. uk /k nowledge/projects /preparing- the- strategic- road- network-for-electric-vehicles/, Access 20th Dec, 2015
  • Joann Muller (2013), The Real Reason Tesla Is Still Alive (And Other Green Car Companies Aren’t), reason- tesla- is- still- a live- and- other- green- car- companies- arent/#4d641b5c239c, Access 10th Mar, 2016
  • McKinsey & Company and Amsterdam Roundtable Foundation (2014), Electricvehicles in Europe: gearing up for a new phase?, Amsterdam Roundtable Foundation
  • Myles Edwin Mangram (2012), The globalization of Tesla Motors: a strategic marketing plan analysis, Journal of Strategic Marketing (2012) 289-312
  • Paul Baines and Chris Fill (2014), Marketing, 3rd Edition, Oxford University PresssRitsuko Ozaki and Katerina Sevastyanova (2009) Going hybrid: An analysis of consumer purchase motivations, Energy Policy 39 (2011) 2217-2227

Cite this page

Tesla Motors Marketing. (2019, Dec 18). Retrieved from

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