Complete Analysis on Tesla Marketing Strategy - 2023 | IIDE (2023)

Tesla Motors, an electric car manufacturing based company situated in California. Tesla is bringing the world closer to sustainable energy with electric cars, and renewable energy solutions. Now, we will be highlighting the one-of-a-kind marketing strategy of Tesla Motors, which made the brand shine bright in the automobile industry. We will throw light on the interesting marketing strategies and marketing mix of Tesla and how the company has achieved a 0$ marketing budget.

Before we race into Tesla Marketing Strategy, let’s get started with the company introduction for a better understanding of marketing strategy.

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About Tesla

Marketing mix of Tesla

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Tesla Marketing Strategy

Status Driven Product

Customer Experience

(Video) 2023 Investor Day

Social Media Marketing of Tesla

– Sales Centers

– After-Sales Service

– Authentic Humorous Approach

– Engages with the Audience


About Tesla

Complete Analysis on Tesla Marketing Strategy - 2023 | IIDE (1)

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Tesla, Inc. is an American-based company providing clean electric power solutions and electric cars from Palo Alto, California. It specializes in producing clean renewable electric energy and top-notch electric cars for the general public all over the world. Tesla is world-renowned for its Tesla cars and their phenomenal performance slapping on the road. Furthermore, the CEO of Tesla is the world’s renowned entrepreneur Elon Musk.

Tesla is worldwide famous for its 0$ marketing strategy. That’s right. Tesla does spend any funds for its marketing other than its launches. This sounds very strange but this is true. Tesla has leveraged multiple benefits from its operations and directed those leverages into its marketing strategies. Now we have a brief knowledge about the company .let’s dive into its marketing mix.

Marketing mix of Tesla

The marketing mix consists of 4 P’s that helps in the growth, i.e its, provided, Product, Price, Place, and Promotion. It helps in developing the right marketing strategy for the company. Tesla has smart brains working hard in the back end to retain maximum profits out of the business. And, here is the marketing mix of Tesla.

  • Product Strategy of Tesla

Tesla has its vehicles in three models. Those are Model S, X, and 3. Every one of them is made with amazing motors that can go from 0 to 60 mph in just 3 seconds. Every one of them has its unmistakable eco-accommodating highlights. This brand is making critical changes by utilizing sun-powered innovation in its significant energy frameworks for having better products and enhanced performance.

Complete Analysis on Tesla Marketing Strategy - 2023 | IIDE (2)

  • Place Strategy of Tesla

Tesla doesn’t have any franchises. With its online-based organization claiming stores, this brand eliminated the scaffold of third-party interaction. it utilizes the difficulty to get the idea. Its vehicles are non-debatable; Because this organization doesn’t have a tremendous amount of items like other car organizations, Tesla makes it difficult to get its vehicles. Therefore, just a restricted segment of individuals can get them, and that is the thing that this organization needs.

  • Pricing Strategy of Tesla

The market cost of Tesla is far higher than other premium models of GM, Ford, Toyota, and so forth. The underlying pace of Tesla’s absolute first EV car model S had a sticker price of $71000! Different models additionally cost between $70000 to $152000!

Yet, the most amazing part is, the interest in these vehicles hasn’t diminished a piece; all things considered, the developing limit has made the cost of these vehicles increase considerably more as Tesla’s assembling plants don’t want to fulfil the high demand of cars.

This brand has utilized the eco-accommodating idea with superior tech, which has driven its estimating procedure to more achievement.

Complete Analysis on Tesla Marketing Strategy - 2023 | IIDE (3)

  • Promotion Strategy of Tesla

Tesla shockingly got a ton of inclusion from its business edges and informality. Its progressive items never required any extra advancement till now. Likewise, Elon Musk, the brainchild business visionary and CEO of Tesla, with his enchanting words and incredible information, has been effectively producing an enormous measure of free exposure oftentimes.

This organization consistently discovers better approaches to make media buzz, which no other organization’s marketing team or CEO could do. since we have gained a brief knowledge about marketing mix. let’s move to another important strategy called market strategy.

Tesla Marketing Strategy

The marketing strategy of Tesla is very interesting as its marketing budget is $0. So, here are some strategies used by Tesla for marketing its product.

Complete Analysis on Tesla Marketing Strategy - 2023 | IIDE (4)

  • Status Driven Product

Tesla built its business i.e electric car over the concept of status-driven business which always provides an upper hand in the market. Such status-driven products derive the customers towards them instead of investing funds to grab their attention.

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  • Customer Experience

Tesla works on an efficient and effective method of promotion i.e word of mouth. Its goodwill is driven from the customers to the potential customers. Tesla provided the best customer experience it could provide with the bucks, making its customers happy and enthusiastic about its product. They provide quality cars with sensible fashion and tremendous use of technology like autopilot which gains attention in this digital and technology-run world.

As we all know that marketing strategy, as well as Social media marketing, go hand in hand let’s have a glance at how social media marketing works in this company.

Social Media Marketing of Tesla

Tesla’s CEO Elon Musk has provided a great boost to the presence of Tesla in the market. He is socially active on social media and is always into little controversies. His idealistic personality attracts many followers and his social platform becomes a platform for the marketing of Tesla. Every tweet of Elon Musk creates a change in the stock exchange. Such a social presence is beneficial for Tesla in the end for promotion.

Elon Musk has always been into creating buzz all over the internet. His latest buzz was his window glass test of the newly launched cyber truck that was not supposed to break, but it made a great buzz for Tesla, which turned out to be a promotion for Tesla’s cyber truck.

Complete Analysis on Tesla Marketing Strategy - 2023 | IIDE (5)

(Source: Les Echos)

– Sales Centers

Tesla does not work as any general auto company does. It does not have any franchises to offer to investors. They have created sales centres that work for sales and service at the same time. Sometimes these franchise owners work more for the incentives rather than for the brand. These centres are run by Tesla itself, therefore, cutting the incentive-based performance of franchise owners.

– After-Sales Service

Tesla provides world-class service support to its customers with facilities to enhance the experience of any Tesla car owner and let them drive their vehicles without any worries. This level of service support turns around customer loyalty and support.

– Authentic Humorous Approach

Tesla’s approach to its products starting from model x celebration mode to sending the roadster to space justifies that the team of Tesla has some sense of humour. This connects the brand to the public and the leader leading this process is its CEO Elon Musk who creates buzz through his funny and attractive tweets.

– Engages with the Audience

Tesla is always loud and clear about what it is planning and true to its audience. Their launch events with crazy car tests and communicating with the audience through online platforms make the brand active in the market.

With this, we come to the end of the Marketing Strategy of Tesla. Let’s summarise all that we learnt from this analysis.


Tesla is among the leaders of car manufacturers especially in the category of electric cars. They are doing a great job and it is very evident by their actions that they know what they are doing.

Tesla believes it is better to invest in customers by providing them quality products rather than spending millions of dollars on marketing and promotion. Tesla’s 0$ marketing strategy is one of a kind and kudos to Tesla are still able to run it without any major issues.If you have made it to the end then it proves you are among the fanbase of Tesla.

Hope this case study is helpful for you. If you find this interesting, share it with your friend and comment on what are your takeaways from the marketing strategy of Tesla and check out this institute where you can learn more about Marketing Strategy and Social media marketing in minutes

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How would you describe Tesla's marketing strategy? ›

The Tesla marketing strategy is based on the buzz created online and the CEO's aura, which is larger than life. This has helped Tesla differentiate its marketing. Apart from the marketing, Tesla's products are one of a kind, and they have spectacular quality.

What market entry strategy does Tesla use? ›

Tesla Motors follows a product strategy entering from premium market and moving towards mass market. After starting with a high-price Roadster model Tesla launched the more affordable Sedan and a SUV model.

What marketing strategy did Tesla use to overcome its early lack of resources? ›

Tesla's marketing strategy, then, goes against the trend of developing TV advertisements and pushing its products onto consumers. Instead, Tesla focuses on word of mouth advertising, and referrals. Essentially, Tesla markets to its customers by not directly marketing to them.

What strategy is Tesla pursuing to promote and manage innovations? ›

For Tesla, strategic innovations doesn't mean developing new and unheard of technologies, but re-imagining how existing technologies can be deployed in new and meaningful ways. Tesla is engineering the future by looking to the past.

What is marketing strategy answer? ›

A marketing strategy is a long-term plan for achieving a company's goals by understanding the needs of customers and creating a distinct and sustainable competitive advantage. It encompasses everything from determining who your customers are to deciding what channels you use to reach those customers.

Why is Tesla's strategy successful? ›

Tesla's success in reducing costs was to minimize risk by keeping very little inventory. Such inventory cost reduction was achieved by batch production after prepaid orders were obtained. Its order-production strategy offers a few advantages.

What is Tesla's main market? ›

While the United States continues to be Tesla's most important target market, the company also aims to tap into the Chinese and European markets.

What type of market structure is Tesla? ›

Tesla's work in an oligopoly market which have a limited competition in which a few producers control the majority of the market share and typically produce homogenous products.

What is the strategic issue of Tesla? ›

Supply chain issues, a global chip shortage, and a pernicious pandemic plagued the industry. However, an unorthodox strategy at Tesla proved invaluable when facing tough times in 2021 — vertical integration.

How did Tesla become successful without advertising? ›

Instead of advertising, Musk's instincts led him to build a product that compelled customers to advertise for him. They would also do his research and spread the word contagiously, at no charge. His job was to build the product, open stores, and let the customers post the results on social media.

How Tesla is achieving a competitive advantage over its competitors? ›

Other innovative features that Tesla offers are non-product related. They exist in the form of advanced logistics and manufacturing systems and processes. These include a reinvention of the retail car supply chain which does not rely on high servicing costs (electric motors need little maintenance).

How would you describe the innovation strategy of Tesla? ›

Tesla's product innovation strategy can be described as an incremental innovation strat- egy, with high system level when producing electric vehicles and energy solutions. It uses technologies like autopilot program, which is a radical innovation in the automotive sector [12].

What are the most important elements of Tesla's competitive strategy? ›

Tesla uses broad differentiation to compete in its industry. The strategy entails developing unparalleled car models that differentiate Tesla from other automakers.

What are the 4 main marketing strategies? ›

(Marketing mix explained) The four Ps are product, price, place, and promotion. They are an example of a “marketing mix,” or the combined tools and methodologies used by marketers to achieve their marketing objectives.

What is the most successful marketing strategy? ›

Most effective marketing strategy: SEO marketing

SEO or search engine marketing tops the list of effective marketing strategies for small business, because it forms the base that all your other online marketing strategies will build upon.

What are 6 main points of marketing strategy? ›

The building blocks of an effective marketing strategy include the 6 P's of marketing: product, price, place, promotion, people, and presentation. The effective integration of the 6 P's of marketing can serve as the foundation for an effective growth strategy.

What entry mode did Tesla use for entry into the Chinese market? ›

Tesla was allowed to enter the Chinese market as it brought value to the Chinese EV industry, like Apple and the consumer electronics market. Tesla's marketing “strategy” of not marketing worked well in China, where word-of-mouth spreads quickly provided that the product is valuable to consumers.

What is the easiest entry for Tesla? ›

Any driver can use the Easy Entry setting by associating it with their driver profile. When the Easy Entry setting is associated with a driver profile, the steering wheel and driver's seat automatically adjust when in Park and the driver's seat belt is unbuckled, allowing an easy exit from Model Y.

What is passive entry for Tesla? ›

What is Passive Entry? Passive entry automatically locks and unlocks your Tesla vehicle when the paired key fob is within a specified range.


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