Marketing strategy of Tesla ~ STP, Marketing Strategy


Tesla, Inc. is an American-based company that offers clean electric power solutions and electric cars from Palo Alto, California. It was founded in 2003 by American entrepreneurs Martin Eberhard and Marc Tarpenning and was named after the Serbian American inventor Nikola Tesla. The marketing strategy of Tesla includes its business model, general information, marketing model, and many more.

The entry and growth of Tesla Motors has produced enormous change in the automotive industry. What lessons can alternative energy start-ups learn when considering entry into an established industry?

Reviewing the innovation management literature, we examine the emergence of Tesla Motors and analyze its commercialization of electric vehicles through an in-depth case study. Drawing on both primary and secondary data we construct a performance trajectory depicting Tesla’s entry into the automotive market and demonstrate that Tesla Motors has not followed a disruptive innovation strategy. Instead, Tesla’s commercialization strategy is explained through the lens of Architectural Innovation and the Attacker’s Advantage. Implications are provided for new entrants.

Marketing strategy

The list of a few notable marketing strategies followed by Tesla:

  • Status-Driven Product
  • Innovative Design
  • Simplified Customer Experience
  • Post-Purchase Customer Support
  • Word-of-Mouth Marketing
  • Enticing Referral Program
  • Authentic Humorous Approach
  • Drive Marketing Effort
  • Channels For Brand Exposure

4Ps of Marketing (Tesla).pptx

Tesla Motors gives importance to their cars’ technology. They develop software for their cars to keep them updated. Basically, this gives Tesla the ability to improve its car engine software to enhance the consumer experience every few weeks.

Innovative Designs

Tesla is totally committed to creating cutting-edge products that offer fantastic driving experiences. To do this, it spent about $2.59 billion on R&D in 2021. The project produced important self-promotional historical landmark designs in the EV industry.

To monitor the surroundings and alert the owner to any possible dangers, Tesla’s sentry mode, for instance, employs external cameras. Another futuristic feature is the autopilot.

The Tesla S’s 17-inch touchscreen display is stunning. It is referred to as the Tesla tablet. From maps to weather updates to a music player, it provides everything you need for a comfortable drive. Additionally, prospective buyers have the option to design and purchase a Tesla, customizing both the inside and outside of the vehicle to their preferences. These ground-breaking functions and personalization choices give Tesla a cult following that boosts its word-of-mouth sales.

Tesla’s Marketing Mix

Product Mix

Tesla cars come in three different variants, i.e., Model S, X, and 3. All three models are made with amazing motors that can go from 0 to 60 mph in just 3 seconds. Every one of them has unique eco-accommodating highlights. Tesla is incorporating solar technology into its major energy frameworks to improve products and performance.

Tesla Motors gives importance to their cars’ technology. They develop software for their cars to keep them updated. Basically, this gives Tesla the ability to improve its car engine software to enhance the consumer experience every few weeks.

The stylish design of the cars adds value to the product strategy of Tesla. The brand understands that an expensive car must be beautiful and eye-catching. It attracts teenagers the most because they are cool and stylish.

Place Mix

Tesla Motors serves its worldwide audience through its headquarters situated in Palo Alto, California. The international company has stores in Asia, Europe, Australia, South Korea, Dubai, and North America, which work as extensive sales and distribution centres.

China is one of the largest markets for Tesla for electrical vehicles. The company has eight locations in Canada, including Montreal and Ontario. Tesla Motors has built retail outlets in Los Angeles and Manhattan.

There are 438 Tesla Motors stores throughout the world and 100 service centers. They have 30,000 individual fast-charging points across the globe, with the major number of supercharger stations situated right here in North America.

Tesla Motors has its own website for selling products and dealing with interested customers. In the United States, to maximize brand exposure, several galleries and stores are put up at shopping malls.

The company believes in a direct to customer sales approach through its service centers and stores. The Tesla Motors manufacturing center is in Fremont, situated in California. Other manufacturing plants are spread far and wide, like Giga Factory 1 in Nevada and Giga Factory 2 in Buffalo, New York. The Tesla R&D departments are in Athens, Greece.

Pricing Mix

Tesla Motors’ primary aim was to target wealthy buyers, making a conscious decision to seize the larger markets. The buyers in the market were more interested in high-quality products with advanced technology regardless of their cost, because they could easily afford such products.

Later on, keeping in mind mid-scale consumers, the company launched products that were affordable. The company captured a large part of the consumer market by adopting a reasonable pricing strategy.

Promotion Mix

Tesla Motors approved a budget of 52 US dollars for marketing purposes in the year 2017. To promote their product, they used a word-of-mouth referral programme to attract buyers.

It was a unique strategy to promote their products among customers and attract buyers. Media releases and public relations activities had a significant impact on product promotion and positive brand awareness.

As a part of Tesla’s marketing strategy, the PR activities played a crucial role in spreading awareness. The surcharging stations on highways and charging ports at malls, restaurants, and hotels have the brand name Tesla written over them.

Tesla has a YouTube channel with 2.29 million subscribers and 275 videos showing great features of the car. For maximum benefits, they use their Facebook page for promotion and brand awareness.

Tesla Marketing Strategy 2


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 directlymarketing to them. It encourages others, namely customers, to do the selling for them.