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Tesla Marketing Strategies

A solid marketing strategy needs to focus on the firm’s value proposition, which tells customers what the company stands for, how it runs, and why they should do business with it. Therefore, the marketing strategy is considered a detailed outline of the marketing plan, which is a document that outlines the many sorts of marketing activities that a firm engages in and includes timelines for implementing different promotional projects. In this article, we will major in Tesla’s marketing strategies.

Tesla’s Strategic Marketing Execution

A company’s success is primarily determined by its marketing techniques, among other things. Other businesses in the business market offer relatively similar services or products, and a company can stand out if it executes its marketing strategy well. Tesla Inc. is an example of a corporation that has seen significant growth in its brand popularity in the United States and other countries, particularly China.

Tesla Inc. has implemented high-quality products, infrastructure investment, and advertising marketing tactics (D’Arcy 2019). Based on growth, the development of a firm is defined by a rise in sales volume, and Tesla Inc. had designed a unique marketing approach to accomplish this. The firm started with a notable $100,000+ Roadster based on a Lotus basis that had been modified. The vehicles sold poorly in the United States, but the firm is now focusing on lower-cost cars, such as the $60,000 entry-luxury vehicles, which are progressively growing sales. Tesla intends to expand its mass manufacturing of electric vehicles in China following the Chinese government’s clearance of its Gigafactory (Yu, 2019). The first car from the factory is planned to arrive in early 2020. Tesla Inc. plans to construct charging stations within a driving range of 98 percent of the American population, based on infrastructure investment and the predicted rise in the number of customers purchasing electric cars. These terminals provide free charging to Telsa owners, with some offering supercharging choices of 80 percent in 40 minutes. The same ambitions are in the works in China, following the approval of the Tesla Gigafactory in Shanghai.

In terms of high-quality products, the first Tesla car was the Roadster S model, designed to be the best and most prestigious electric car in the United States. Its efficiency was matched to that of gasoline-powered vehicles. On the other hand, it accelerates from zero to sixty miles per hour in less than four seconds and has a top speed of 125 miles per hour. Due to its elegance and elite appeal, Tesla hopes that the debut of the Model 3, which has identical attributes to the one sold in the United States, in the Chinese Market would draw even more buyers. Tesla has never advertised its products in the media, according to advertising. Instead, they put the money toward making the product even better for their customers. Following the loss of some of its $7,500 tax credit in 2016, Tesla allowed its consumers to recommend the best approach to sell its product. Yu (2019) explains that when it comes to customer experience and traffic, Tesla initially had some issues, primarily owing to late deliveries. Nonetheless, better plans are in the works to improve the delivery procedure. To address some of the problems, Tesla’s CEO, Elon Musk, takes individual accountability for calling customers in a misunderstanding about delivery or even the product itself. To grow customer traffic, the company plans to employ the same customer experience model in China by creating additional retail stores to reach more customers.

The Advantage in the Market

Technology is one of the company’s competitive advantages. Because the company is a technology firm that creates technology platforms, it is a technology investment. Not only does the corporation produce automobiles, but it has also constructed the infrastructure necessary to support the operation of these vehicles (Manecuta, 2020). For example, it has developed a series of superchargers and battery swiping stations in various parts of the United States. Other car manufacturers have already delivered complete autonomous driving capabilities; therefore, the company is on pace. A significant strength is the company’s reputation. They have, for example, converted electronic automobiles from slow to fast vehicles capable of competing with other companies in the marketplace. However, most of their models have a top speed of 60 mph, which only a few superior cars can match (Virvilaite et al., 2011). The company has a strong brand image thanks to its reputation for quality. Most significantly, they have broadened their scope of operations. They’ve begun producing solar roof tiles to supplement their business with rechargeable lithium-ion batteries.

Marketing Techniques

Because they aim to reach clients worldwide, the company prefers to adopt an internet sales approach. Nonetheless, they have created physical stores to sell their autos. They do not, however, use a traditional dealer network. Regardless, the company’s distribution channel faces several obstacles due to the significant investment required to establish the distribution channel (Bhasin, 2019). Other manufacturers, for example, have partnered with a third party to market their vehicles. Tesla relies solely on its stores to sell its electric vehicle concept, which is the only route available to them. The company’s selling costs have been decreased by selling their car online—their dealership functions as a showroom for customers to come in and look at the vehicles. The company’s growth has been primarily shaped by word of mouth. The method has resulted in numerous referrals, turning customers into marketers. As a result, the corporation is under pressure to deliver a fantastic product that will provide the user with an unforgettable experience. The Tesla referral program is evolving, just like many other firms that have formed a referral campaign to support their customers to spread the word (Srivastava, 2009). According to the programs, anyone who refers people to the company will receive a thousand dollars credit toward purchasing a new Tesla or any Tesla-related service.

Product/Marketing Mix

Tesla, Inc. is a privately held company that produces a wide range of technologically advanced products. The company follows the B2B business model, encouraging companies to form partnerships to deliver products and services. They likewise follow the B2C strategy, offering vehicles for families, luxury, and the mainstream Market. The firm is a well-known eco-friendly product maker, developer, and distributor. It also provides automotive-related services to other automakers around the globe (Bhasin, 2019). The electric automobile, powered by a battery, is the main product created and marketed by this company. Aside from that, it also produces sustainable energy technology and supercharging stations.

Induction motors, magnet motors, lithium-ion batteries, autopark, roof glass autosteer, and the emergency braking are just a few of the company’s products. Based on their cars, Tesla Model S is one of the models. The Tesla Model S was the company’s first sedan vehicle. The vehicle offered luxury features and quality, such as a powerful engine, adaptive lighting, a self-driving auto-pilot, and a defence mode for all occupants. The Tesla Model 3 is another type. The car is classified as a third-generation model and one of the company’s most coveted automobiles, and it is built using electric vehicle innovation. It also meets the highest levels of user safety. Finally, there’s the Tesla Model X. The vehicle is classified as a crossover SUV with an aluminium body. Clean air technology has also been incorporated into the car’s manufacturing, designed to protect the user from dirty air. The car is also regarded as one of the fastest, with a 60 mph acceleration time of only 2.9 seconds.


The organization has placed a strong emphasis on customer service. It comes in a variety of sizes. The corporation owns and operates its sales and distribution networks in Europe, North America, Asia, Dubai, and the United Arab Emirates. China is Tesla’s largest market, and as a result, they’ve established a manufacturing facility in the country. As of 2017, the company had opened eight locations in various sections of the world. The company has opened storefronts in cities across Canada, including Ontario and Montreal. The corporation was founded in San Carlos, California, and then expanded to other locations, including Los Angeles and Manhattan. The corporation has over 300 locations in the United States (Bhasin, 2019). Most of these businesses are located in shopping centres because the corporation wants to take advantage of the many shoppers who frequent malls to obtain maximum brand awareness.

Nonetheless, they have a webpage where interested clients can purchase their products. The corporation has opted to follow the customer’s instructions. In its stores and service centres, it employs a point-of-sale strategy. They can do so by communicating with potential customers and providing immediate services feedback from their clients. All automobile services and inspections are available. They have performed in their service stations. In addition, the company has heavily made investments in social media marketing and corporate showrooms. In addition, significant funds were invested in research and development centres in Athens, Greece.


The customer’s product positioning is where they are addressing the wealthy. As a result, they have attracted affluent customers who can afford to pay exorbitant prices for their goods. The company began by charging a premium price. Since then, it has kept all of its premium products at high rates. Nonetheless, their product uses cutting-edge technology, which is why their clients must pay a premium. Nevertheless, following its entry into a new market, particularly in Asia, the corporation has provided affordable items accessible to mid-scale customers. They’ve recently implemented a more affordable pricing plan, allowing them to reach a more extensive consumer base.


The corporation has made significant investments in product promotion. For example, they have invested a considerable amount in their referral program to entice buyers. To promote favourable brand recognition, the corporation uses media releases and its sales and marketing team. The corporation is surcharging stations on several highways, malls, and hotels as part of its marketing.

The Influence of Social Media

The company has invested resources in building various social media platforms to increase brand awareness. The business has a well-known website and blogs for online marketing. For example, when launching a new product, they will always generate a viral buzz by uploading videos to their YouTube channel, Twitter, and Facebook page account (Ian, 2020). Furthermore, the firm will welcome press members to test the car, ride it, and report about it before the unveiling. It’s a good deal considering a test ride from its sales center costs $5,000. As a result, getting a celebrity to test drive the automobile is an innovative marketing approach. Tesla has worked with prominent influencers who have a large social media following, and as a consequence, they’ve benefited from it. Their CEO has the most sway over them.

When comparing the firm’s social media account to the CEO’s, you can see how powerful he is. The CEO, for example, has more than 23 million Twitter followers, whereas the firm’s account has 3 million. Instead of paying influencers, the company’s CEO considers promoting the brand through his individual social media account (Kim et al., 2014). It helps to save costs while also customizing the brand. It also offers the organization a face, and buyers are more likely to buy the goods since the owner has already earned their confidence. The corporation is more than just a vehicle manufacturer; it is a vision for the future. Because he influences the brand, the firm CEO is the face of the company. The CEO’s attention to his customers and Tesla users who contact him is one of the reasons why it’s difficult to distinguish between the brand and the CEO. He’s also quite active on social media, where he talks about company technologies new production and answers client questions. Consequently, his presence is felt quite strongly. Furthermore, the company has continuously demonstrated that it values its user experience, and as a result, it has aided in shaping the general impression of the brands.

Finally, Elon Musk, the CEO of Tesla Inc., is mainly responsible for the company’s marketing success. Many countries, notably China, have endorsed his mission to hasten the world’s shift to more sustainable energy. With the opening of Tesla’s factory in Shanghai, Musk expects that in the following years, sales in China will more than treble those in the United States.


Bhasin, H. (2019). Marketing mix of Tesla Motors – Tesla Motors Marketing mix. Marketing91. Retrieved 16 November 2020, from

D’Arcy, P. J. (2019, January 20). Tesla Marketing Strategy. Retrieved November 30, 2019, from

Ian, T. (2020). How Tesla Used a $0 Marketing Strategy To Dominate a Market. Marketing Strategy. Retrieved 16 November 2020, from’s%20marketing%20strategy%2C%20then%2C %20goes,not%20directly%20marketing%20to%20them.

Manecuta, A. (2020). Tesla: How to Leverage Social Media to Build a Top Brand. Medium. Retrieved 16 November 2020, from

Srivastava, R. (2009). Measuring brand strategy: can brand equity and brand score be a tool to measure the effectiveness of strategy?. Journal of Strategic Marketing, 17(6), 487-497.

Kim, S., Pai, S., Bickart, B., & Brunel, F. (2014). How Social Media Influencers Build a Brand Following by Sharing Secrets. SSRN Electronic Journal, 5(4), 3-8.

Virvilaite, R., Seinauskiene, B., & Sestokiene, G. (2011). The Link between Standardization/Adaptation of International Marketing Strategy and Company Performance. Engineering Economics, 22(1), 7-9.

Yu, Y. (2019, November 13). Tesla wins approval for mass production at Shanghai Gigafactory. Retrieved December 1, 2019, from


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